Three Major Stages of Commodity-Market Economy

Abstract

Abstract Classical economics described only two development stages and two corresponding forms of commodity production: One was "simple commodity production" or "small commodity production," and the other was "capitalist production." Capitalism was taken as the "highest form" of commodity production. Although this can explain the 19th century, it has been changed by development of the market in the 20th century. Nevertheless, the theory has been carried on. In particular, people continue to confuse the commodity or market economy, which is a mode of resource deployment, with capitalism, a social system. To date, the traditional concept of putting the commodity economy within the framework of the capitalist system has not been negated or replaced by a new theory.