Section 1: The Two Factors of a Commodity: Use-Value and Value

There are two essential components of the commodity, value and use-value.

1. Use-value is the concrete, natural form of the commodity; its physical or measurable characteristics. Quality and quantity are determined by direct physical observation.
2. Value is the abstract, social form of the commodity. Its quality or substance is homogeneous, abstract human labor. Its quantity is socially necessary labor time (SNLT).

We infer value through exchange value, the relationship between two commodities such as "one shirt is worth two hats."

Mass and weight provide an almost 1-to-1 analogy to value and exchange value, respectively. Objects have mass, but we do not measure absolute mass. We always measure relative mass by comparing the mass of two objects. One of these objects might be a standard kilogram weight. So weight expresses mass, it allows us access to it, but only through relative measurements of different massive objects. When weighing a mass, all other properties besides mass are ignored; color, volume, texture, etc. do not affect the weight. All other qualities except mass are "abstracted" away, and the objects are considered only insofar as they are masses.

Like the above, exchange value expresses value, but only after abstracting away all the distinct characteristics (use value) of the commodities. When we abstract from the use-value of a commodity, we also abstract from the concrete kind of the labor that produced it. This leaves a "residue" of abstract labor, human labor as such. This is the substance that forms value, common to all commodities.

Exchange value tells us about equivalence in terms of both quantity and quality. It is only logical to compare two quantities if they are of like quality. Think of it like converting to the right "units" to add two lengths: You can't directly add 5 inches + 3 centimeters, so you convert one into the units of the other in order to add them as quantities of the same substance.