A system where subsistence farming dominates. Subsistence farming and commodity production

Natural production - this is the kind of it in which people create products to satisfy their own needs. Natural production is characterized by the following features that express the essence of its inherent economic relations.

1. Subsistence farming is a closed system of organizational and economic relations. The society in which it dominates consists of a mass of economic units. Each unit relies on its own production resources and provides itself with everything necessary for life. She performs all types of economic work, ranging from mining different types raw materials and ending with final preparation for their consumption.

2. Natural production is characterized by universal manual labor: each person performs all the basic work. It applies simplest technique and handicraft tools. Labor activity is unproductive, production output cannot increase significantly.

3. Subsistence farming is characterized by direct economic connections between production and consumption. It develops according to the formula “production-distribution-consumption”. This direct connection ensures sustainability of subsistence farming.

Subsistence farming predominated in the pre-industrial stage of production.

Commodity production - a type of economic organization in which useful products are created for their sale on the market. The following features are inherent:

1. This economy is an open system of organizational and economic relations. Employees create useful products not for own consumption, but for sale.

2. The production of goods is based on the division of labor. Its development depends on how deep the specialization of workers and enterprises is in the production of certain types of products or parts of complex products. This phenomenon is objectively caused by technical progress, which in turn receives a big boost from the division of labor.

3. The commodity economy is characterized by indirect, mediated connections between production and consumption. They develop according to the formula “production-exchange-consumption”.

Commodity farming is a system of organizational and economic relations, thanks to which the diversified progress of the economy is ensured. As the division of labor deepens, the use of ever more advanced technology expands. This causes an unprecedented increase in output, and thanks to increased labor productivity, output per capita increases. In addition, the variety of products intended for exchange on the market for other products is increasing.

Reasons for the emergence of commodity production:

Social division of labor

Economic isolation of people for the manufacture of some product.

Depending on the forms of ownership and organizational relations, two types of commodity production are formed. Historically, the first was simple commodity production of peasants and artisans, in which manual labor was used. In this case, due to low output, commodity production is adjacent to the dominant natural production. Under capitalism, the main position in the economy is occupied by a developed commodity economy. In the initial phase of capitalism, a developed commodity economy becomes all-encompassing. All created benefits are converted into market products. Wage labor becomes the subject of purchase and sale.

24.Two properties of a product: value and use value. The value of the product.

Price- English value - social labor embodied in a product, the value of which is determined by the amount of socially necessary working time. Only goods intended for exchange have value, i.e. having social use value. The category of value is justified by the classical school of political economy, and then by K. Marx.

Consumer cost- the usefulness of a thing, its ability to satisfy a person’s needs. Main. Elements of Comrade Produced – goods.

On the one hand, a product acts as a thing, on the other hand, it is any monetary object. Transactions.

Each product has two consumer properties. Cost and exchange rate. Will consume. st-t - the ability to satisfy a particular need.

Exchange rate is the ability of a product to be exchanged for another product in a definition. Proportions.

Pre-work. The theories of art (Smith, Recardo, Marx) and their followers believed that the basis of exchange is labor, i.e. The value of a commodity is determined by the amount of labor measured by the socially necessary slave. Time for his nickname.

Pre-Austrian schools (Menger, Ben Bawerk, Wieser) tr. Theor. The theory was contrasted with the theory of marginal utility; it reflects the subjective attitude of consumers to consumption. Thankfully. As needs are saturated, satisfaction from consumption of the good decreases accordingly, but with a limited supply of the good there is a limiting example of the least utility for the consumer, conclusion - the value of a good of this kind is determined by the utility of the limiting instance.

Glossary of Historical Terms - Subsistence Economy

Through them, the structure of social needs is revealed, which distributes the resources available in society. To such general forms The economic organization of production includes natural and commodity production. Some economists oppose natural farming and commodity production to each other and consider them opposites. Others believe that they have a common economic basis - private ownership of the means of production and a common goal - meeting the needs of the owners and their families. At the same time, they point out the differences between subsistence and commercial farming.

Natural economy predominant in many developing countries. More than half of the population is employed in subsistence and semi-subsistence farming in underdeveloped countries. According to experts, subsistence farming will occupy a significant place in their economy for a long time. Many peoples of Africa, Indian tribes of Latin America, and Southeast Asia have preserved diverse forms of subsistence farming, in particular hunting and fishing, sometimes in combination with primitive forms of land cultivation, often in the form of nomadic cattle breeding.

Natural and commercial production. Product and its properties

The history of economics knows two main types of organization of production: natural and commodity. They are directly opposite to each other and differ in the following characteristics:

a) the development or underdevelopment of the social division of labor;

b) closed or open economy;

c) the economic form of the manufactured product;

d) types of economic relations between the production and consumption of goods.

Natural production. Organizational and economic relations between producers and consumers are most easily established in subsistence farming.

Subsistence production is a system of organizational and economic relations in which people create products to satisfy their own needs. This system has the following specific features:

closed farming

· universal labor

· direct economic relations

Main features of subsistence farming.

For natural production, firstly, the nature of manual labor is universal, excluding its division into separate types; each person performs all the basic work. Their material basis is the simplest equipment (hoe, shovel, rake, etc.) and handicraft tools. Naturally, under such conditions, labor activity is unproductive, and production output cannot increase significantly.

Secondly, subsistence farming is a closed system of organizational and economic relations. The society in which it dominates consists of a mass of economic units (families, communities, estates) separated and economically isolated from each other. Each unit relies on its own production resources and provides itself with everything necessary for life. Performs all types of economic work, starting from the extraction of various types of raw materials and ending with their final preparation for consumption.

This feature of economic organization manifests itself as a tendency in cases where the naturalization of production occurs within the boundaries of modern industrial and agricultural enterprises, business associations and regions (although a developed commodity economy may exist within the state). All such production units are curtailing their economic ties with other parts of the national economy and striving to independently provide themselves with everything they need.

Sometimes a similar trend covers the entire society: individual states pursue an economic policy known as “autarky.” Autarky (Greek autarkeia - self-satisfaction) - the creation of a closed, self-sufficient economy within one country. This is accompanied by a severance of traditional economic ties with other countries. The desire for autarky also manifests itself when high protective customs duties (monetary fees on imported and exported goods) are created, which sharply limits the import of foreign goods into the country. Something similar sometimes happens in closed international organizations pursuing the task of self-sufficiency and refusal to purchase abroad the most important industrial, raw materials and food products.

Thirdly, the subsistence farming system is characterized by direct economic connections between production and consumption. They develop according to the formula: “production - distribution - consumption”. That is, the created products are distributed among all participants in production and, bypassing their exchange, go into personal and productive consumption. This direct connection ensures sustainability of subsistence farming.

Subsistence farming is historically the first type of economic organization of society. It arose during the period of formation of the primitive communal system, when branches of production appeared: agriculture and cattle breeding. In the most pure form natural economy existed only among primitive peoples, when they did not know the social division of labor and the exchange of products between different farms.

Subsistence farming dominated the economy, which was based on a system of personal (non-economic) dependence. It dominated the slave states, and also constituted one of the main features of the feudal economy. The landowner's wealth was formed through various in-kind duties and payments. The economy of the feudal-dependent peasant is also natural.

Due to the dominance of the natural economy and its low technical equipment, the law of its functioning is the repetition of the production process in the same size, on an unchanged basis. Industry proportions (ratios between existing species products) were reproduced without significant changes over the centuries and acted for producers as a mandatory economic norm, consecrated by custom. And the factors of production were in a state of stagnation.

In Western literature, the subsistence farming system is called traditional economics. This partially characterizes the features of this system: a) the dominance of the custom of creating the same thing for consumption;

b) a sharp limitation of technical progress; c) stagnation in socio-economic relations; d) upholding by society the immutability of the existing way of life.

IN modern conditions subsistence farming has largely survived in developing countries where pre-industrial production predominates. Moreover, such an economy coexists with commodity production that supplies products to the world market.

So, subsistence farming predominated during the longest pre-industrial stage of production. At the industrial stage, the second type of economic organization became dominant.

Commodity production- a system of organizational and economic relations in which useful products are created for their sale on the market. Such a system has the following specific features that determine: what to create, how to use factors of production for this, and for whom the products are intended.

Main features of commercial farming:

1.Open farming.

2.Division of labor.

3. Indirect economic ties.

Firstly, the production of goods, is based on the social division of labor, which develops between individual economic units. Its development presupposes the progress of production:

the growth of qualifications and skills of workers, as well as the invention of machines that facilitate and reduce labor, allow one person to do the work of several. An increase in the output of goods at a specialized enterprise creates the opportunity and necessity to exchange their excess quantity for a large mass of other useful things.

Commodity farming gives wide scope to the general economic law of division of labor. In accordance with this law, the economy progresses due to increasing qualitative differentiation (division) labor activity. As a result, several forms of division of labor arise: a) international (between countries); b) general (between large sectors of the national economy: agriculture, industry, etc.); c) special (division within large industries into sub-sectors, types of production at individual enterprises) and d) individual (within enterprises - into their different divisions).

Of course, a single differentiation of labor in an enterprise, associated with the unfinished production of some part of the finished product, cannot give rise to commodity exchange. Such an exchange is a consequence of other types of division of labor: international (foreign trade), as well as general and special (domestic trade).

Secondly, commercial farming is an open system of organizational and economic relations. Here workers create healthy products not for their own consumption, but to sell them to other people. The entire flow of new things, as a rule, goes beyond the boundaries of each production unit and rushes to the market to satisfy customer demand.

Thirdly, the commodity economy is characterized by indirect, mediated connections between production and consumption. They develop according to the formula: production - exchange - consumption. Manufactured products first enter the market for exchange for other products (or money) and only then enter the sphere of consumption. The market confirms or does not confirm the need to manufacture these products for sale. It is through market exchange that economic relations are established between producers and consumers of goods.

Consequently, the development of the division of labor, the openness and market nature of economic relations removed those obstacles to the progress of the economy to which the natural economy doomed it. The potential capabilities of the opposite commodity production are such that it is characterized by the law of expanded reproduction.

Product and its properties. The primary property of a product is its quality, which is what a natural product has - usefulness. However, it would be unlawful to completely identify this property in natural and commodity production.

§ 1. NATURAL AND COMMODITY ECONOMY

It’s one thing to create a product for domestic consumption in a closed economy. It is quite another matter to intend it for sale on the market. Naturally, in a commodity economy, as the welfare of the population grows, buyers' demands for the quality of goods naturally increase. Moreover, in the current conditions, an increasing number of products are being updated and qualitatively improved in accordance with marketing requirements (marketing will be discussed later).

There is hardly any need to prove that if a product does not have utility, then no one needs it.

It is obvious that we recognize as a commodity not a free product of nature, but something for which human labor has been expended, requiring appropriate compensation.

Goods cannot be products prepared for one’s own needs (as in subsistence farming). They will be things created for other people, i.e. public utilities.

Sold on the market useful thing assumes equivalent compensation.

This means that a commodity is a social utility created by labor, intended for equivalent exchange on the market for another commodity.

From this definition it is clear: a product, when exchanged for an equivalent product, receives exchange value on the market. Exchange value is the ability of a commodity to be exchanged for other useful things in certain proportions (ratios) of exchange.

In exchange, heterogeneous goods are presented (cloth, table, meat - as in the example given here). After all, no one sells any good of a certain type for the same utility. Useful things are not comparable in quantitative terms: tissues are measured in square meters, tables - in pieces, meat - in kilograms, etc. What, then, is equal in exchange proportion?

Another outstanding thinker Ancient Greece Aristotle noted; exchange is impossible without equality, and equality without commensurability. However, what lies at the basis of commensurability, no one could say for more than two thousand years. Only in the XVIII-XIX centuries. economic theory gave the long-awaited answer: the general content of exchange equality is the same value embodied in all goods.

Thus, a product has two properties: utility and value. This characteristic properties of the product were quite sufficient for a simple and developed commodity economy until the second half of the 20th century. But recently, in a multi-structured environment Western economy a new classification of products was required.

Subsistence farming and its main features

Many peoples of Africa, Indian tribes of Latin America, and Southeast Asia have preserved diverse forms of subsistence farming, in particular hunting and fishing, sometimes in combination with primitive forms of land cultivation, often in the form of nomadic cattle breeding.

In developing countries, such socio-economic structures coexist as communal farming, patriarchal-natural, feudal, small-scale commodity production, private capitalist, state-capitalist production and government sector. Of these, typical subsistence economies are communal farming, patriarchal subsistence production and feudal farming.

Community farming is based on communal ownership of land and means of labor, simple cooperation, equal distribution and extremely low consumption and is mainly a subsistence economy. Patriarchal-natural forms of economy predominate in many developing countries, especially in Africa, and are based on private ownership of the means of production (except land) and the personal labor of the peasant. The land, as a rule, belongs to tribal leaders, feudal lords, and the church. The majority of peasants are allocated land or rent it under enslaving conditions and conduct subsistence farming on it. The subsistence form of farming is characterized by primitive agriculture, producing products mainly to satisfy one's own needs. The economy of these types of countries is at a very low level: there are almost no capitalist enterprises or a local export sector. Commodity relations have not yet penetrated very well into these countries; subsistence farming has a limiting effect on the domestic market.

In some countries it is significant specific gravity feudal structure, based on feudal ownership of land and various forms of pre-capitalist rent. Production is carried out on the basis of primitive tools of labor of peasants exploited by feudal lords.

The main disadvantage of subsistence farming is that it does not allow high performance labor and provides only minimal conditions for survival. Therefore, natural economy, as the very first form of organization of economic life, was destroyed by such a powerful economic mechanism of human civilization as commodity production.

type of economy in which production is aimed at satisfying the producer’s own needs. “Under a natural economy, society consisted of a mass of homogeneous economic units... and each such unit carried out all types of economic work, starting from the extraction of various types of raw materials and ending with their final preparation for consumption” (Lenin V.

Subsistence and commercial farming

AND., Complete collection cit., 5th ed., vol. 3, p. 21≈22). N. x. arose in ancient times and dominated at a stage when there was no social division of labor, exchange and private property. In a slave-owning society and under feudalism, N. x. remained dominant, despite the development of exchange and commodity-money relations. K. Marx pointed out that N. x. prevails on the basis of any system of personal dependence, both slave and serf (see K. Marx and F. Engels, Works, 2nd ed., vol. 24, p. 544). For N. x. characterized by isolation, limited, traditional and fragmented production, routine technology and slow pace of development. With the deepening of the social division of labor N. x. gradually being replaced by commodity production. Under capitalism, peasant farms retain the features and remnants of modern agriculture. During the transition period from capitalism to socialism in some countries, N. x. is preserved as one of the economic structures. Among those that existed in Russia immediately after October revolution V. I. Lenin called 1917 socio-economic structures “... patriarchal, that is, largely natural, peasant farm"(Complete collection of works, 5th ed., vol. 36, p. 296).

N. x. persisted for a long time in economically backward areas globe(Asia, Africa, Latin America), where, before colonization by Europeans, tribal or feudal relations dominated. In countries that freed themselves from colonial dependence (especially in countries with a “capitalist orientation”), in the mid-20th century. 50≈60% of the population is employed in subsistence or semi-subsistence farming.

Lit.: Marx K., Capital, Marx K. and Engels F., Soch., 2nd ed., vol. 23≈25; Lenin V.I., Development of capitalism in Russia, Complete. collection cit., 5th ed., vol. 3; Problems of industrialization of developing countries, M., 1971.

T.K. Pajitnova.

Theories of value.

Product and its properties.

Commodity farming.

Subsistence farming and its characteristics.

Topic 6. Commodity production.

1, 2,5,6,9,10,11, 14

TASK SHEET

What are the material and intangible spheres of economic activity?

Questions for the lecture

1.Describe natural and social environments people's lives.

2. How are labor and natural resources interconnected?

Natural economy

How do forms of ownership influence entrepreneurial activity?

1. All points of the lecture plan are presented as separate questions for the seminar lesson.

2.Using an economic dictionary, write down and learn the following terms:

Economic theory normative -

3. Prepare abstracts on the following topics:

7.Types of economic activity

LITERATURE:

INDEPENDENT WORK _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

There are two basic types of economic organization: natural and commodity farming.

Natural economy - this type of organization of social production in which the products of labor were used to satisfy the personal needs of direct producers and members of their families, ᴛ.ᴇ. for use within an economic unit - clan, tribe, patriarchal family, community, latifundia, feud.

It is worth saying that the following features are characteristic of subsistence farming:

Closedness;

— limited and fragmented production;

- traditionality;

- slow pace of development.

It was based on manual universal labor and existed in its purest form among primitive peoples who did not know the social division of labor and did not exchange their products with each other. The state of the productive forces and their organization were characterized by extreme primitiveness; the set of products created did not change for centuries and were produced in almost the same sizes from year to year (simple reproduction).

Three main questions WHAT?, HOW?, FOR WHOM? - the owners of the farm (they are also workers) decided, focusing on the needs of their farm (the patriarchal family). Established customs and the will of the leader played a major role in subsistence farming.

As the dominant form, natural farming has long passed the path measured out for it by history. At the same time, the connection according to the principle of “produced - consumed” (without exchange and social distribution) turned out to be very stable, its elements can be seen in modern society both at micro and macro levels. An example of subsistence farming at the micro level is gardening, which is highly encouraged by the state during periods of economic turmoil. An example of naturalization at the macro level is politics autarky, which involves the creation of a self-sufficient economy within one country, aimed at self-sufficiency. Such a policy leads to self-isolation of the country from the world market, to a lag in economic development, does not ensure economic independence and is therefore reactionary.

Subsistence farming is an obstacle to socio-economic progress. In parallel with it, commodity production operates, and in the late Middle Ages it becomes dominant.

Lexical meaning: definition

The general stock of vocabulary (from the Greek Lexikos) is a complex of all the basic semantic units of one language. The lexical meaning of a word reveals the generally accepted idea of an object, property, action, feeling, abstract phenomenon, impact, event, and the like. In other words, it defines what it means this concept in the mass consciousness. As soon as an unknown phenomenon gains clarity, specific signs, or awareness of the object arises, people assign it a name (sound-letter shell), or rather, a lexical meaning.

Unified State Exam. Story. Task No. 24. Points of view. Economy of Ancient Rus' - subsistence farming

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type of farming, in which, as opposed to commodity, products are produced for their own. consumption (in each household unit). “Under a natural economy, society consisted of a mass of homogeneous economic units... and each such unit carried out all types of economic work, starting from the extraction of various types of raw materials and ending with their final preparation for consumption” (V. I. Lenin, Works, vol. 3, pp. 15-16). Sometimes under N. x. in bourgeois literally means an economy in which exchange (if it already exists) occurs without the mediation of money, through simple barter trade (the first stage of the division of the history of economy proposed by the German economist B. Hildebrand into the stages of natural, monetary, credit). N. x. dominated in that history. period when society the division of labor was practically completely absent or was still poorly developed. N. x. was one of characteristic features pre-capitalist economy formations. It existed in its purest form during the pre-class period. system, although in some cases there was already an exchange of individual products at that time. From the same stage of development at which classes arise, N. x. everywhere already intertwined with more or less means. elements of commodity production and exchange as societies grow. division of labor exerting an ever-increasing modifying influence on it. In emerging cities, and sometimes in villages. In localities, pockets of predominantly commodity production were emerging. However, in the mere fact of the presence of production on the market and trade, even relatively developed ones, one cannot yet see evidence of the loss of N. x. predominant position in the economy. It remained dominant in the class. societies ancient world, and in the Middle Ages. Most of the production was produced in the still largely self-sufficient farms: partly within the framework of the cross. x-v, partly within the household. formations that developed on the basis and for the purpose of exploiting the labor of peasants or slaves (royal and temple estates of the countries of the Ancient East, ancient slaveholding estates, in particular latifundia, feudal estates). The exploitation of both slaves and feudal-dependent peasants took place in these farms on a subsistence basis. relationships, work force has not yet become a commodity. Basic the mass of the population continued to live in the village, combining occupation with. x-vom with the production of simple crafts consumed by it. products. Household life was characterized by isolation, local limitations and disunity, the dominance of traditionalism, and an extremely slow pace of development. As societies deepen. division of labor N. x. was increasingly replaced by commodity production. However, this process was not straightforward. Yes, economics early Middle Ages was to a much greater extent natural in nature than the economy of the historically developed developed antiquities that preceded it. slave owner societies, during the history. developments were observed separately. periods of “natural-economic reaction”, etc. The most persistent N. x. held in societies where it lasted. time saved villages. the community, especially in its form, which was characteristic of certain countries of the East (see article Community). With the achievement of that history. steps when the logistics are added up. prerequisites for the broad development of societies. division of labor, N. x. loses dominance. position and is replaced by simple commodity, and then capitalist. production However, even later it remains as a relic. Thus, V.I. Lenin is among the social and economic ways of life that existed in Russia in the first years after Oct. revolution, also called “...patriarchal, that is, largely natural, peasant farming” (ibid., vol. 27, p. 303). In the economically backward countries of Asia, America, and Africa, where the feudal and sometimes primitive communal system (or its elements) were maintained in the 19th and even in the 20th centuries, accordingly, the modern economy was preserved longer, being combined in an ugly way in the colonies with various forms of exploitation of the local population monopoly. capital. For many views bourgeois scientists of the 19th century There was a characteristic tendency to pursue the idea of the dominance of N. x too straightforwardly and without the necessary reservations. in antiquity and the Middle Ages (K. Bücher’s attempt to subsume all the basic economic phenomena of the ancient world under the concept of “closed household farming”, an overly simplified idea of the supporters of the patrimonial theory about the feudal patrimonial estate as a self-sufficient economic organism, etc. ). At the turn of the 19th and 20th centuries. these views have been criticized. Referring to the fact of the existence in ancient times and in the Middle Ages of already relatively developed trade and money. treatment, some researchers began to generally deny the legitimacy of characterizing the economy of these eras as subsistence economic in its basis. Rejecting the modernization views of those historians who speak of the dominance of barter in ancient times and the Middle Ages (E. Meyer, A. Dopsh, etc.), one cannot, however, go to the opposite extreme of underestimating the real importance of exchange in these historical . era, as Bucher did. Commodity production and exchange of steel important factor society life is still at that stage of development when most of the products were produced within the framework of the basic self-sufficient x-v. See Art. Commodity production. Lit.: Marx K., Capital, K. Marx and F. Engels, Works, 2nd ed., vol. 23-25 (see Subject indexes); Lenin V.I., Development of capitalism in Russia, Works, 4th ed., vol. 3; Porshnev B.F., Feudalism and the Popular Masses, M., 1964 (Part 1, Chapter 3); Bücher K., The Emergence of the National Economy, trans. (from German), M., 1923; Meyer Z., Economic. development of the ancient world, (translated from German), 3rd ed., M., 1910; Dopsch A., Naturalwirtschaft und Geldwirtschaft in der Weltgeschichte, W., 1930; Kula W., Teoria ekonomiczna ustroju feudalnego. Proba modelu, Warsz., 1962. Yu. A. Korkhov. Moscow.

The history of the evolution of society indicates that at various stages of development of production relations and productive forces, the social economy repeatedly took on different economic forms, the first and initial of which was natural economy (subsistence production).

According to historical data, at different times there was a significant diversity of its models: Asian, Slavic, primitive, Germanic community and others. Despite the commonality of the main characteristics, a single model had individual characteristics due to its specific habitat.

Natural production and its main features

They look like this:

Subsistence farming is represented by a closed system, that is, it has an autarkic character. A single economic unit carries out the entire list of work and thereby provides itself with all the benefits necessary for life.

Subsistence production is not associated with the division of labor, which is therefore unproductive. This leads to a minimum amount of surplus product.

This economic form of social economy is not characterized by exchange.

It is historically based on land ownership. This form of management appeared as a consequence of stagnation in the social division of labor and the primitive nature of its material conditions.

Subsistence production is a form of economy that is based on the creation of material goods and services exclusively for consumption within a single economic unit. Thus, there is no development of any external relationships.

Production relations here are expressed by the relationship between people, and not through the products of their labor, for example, a slave owner and his slave. Subsistence production strictly confines the economic processes existing at that time within local units, thereby preventing the opening of channels for establishing external relations.

So, natural production (its main features, more precisely) had, so to speak, a primitive color, both in terms of the development of production relationships within a separate economic unit, and in terms of the most basic connections between communities.

The labor force was strictly assigned to the corresponding economic community and was deprived of mobility. This justifies the conservatism of subsistence farming. It is primarily the specific features of the natural form of farming that reveal the reason for the vitality and sustainability of agricultural communities for many millennia.

The natural form corresponds both to a certain level of productive forces and to certain industrial relations, which predetermine a very narrow goal of all production: satisfying needs that are insignificant both in quantitative and nomenclature aspects, and of a primitive nature.

Subsistence farming and commodity production

The prerequisites for the emergence and further development of the following form of management were the following facts:

The commodity form initially emerged as the exact opposite of subsistence farming.

It represents ordered social production, in which economic relations are manifested through the market (through the purchase and sale of products of labor activity).

So, natural and commodity production acted as a kind of counterweight to each other. The transition to the latter became evidence of the emergence and further evolution of economic thinking and subsequent commercially civilized relations in the economic sphere.

Two conditions for the development of commodity production

The presence of a social division of labor, according to which each producer is engaged in the production of a certain type of product. Specialization was the main condition ensuring an increase in labor productivity, and subsequently technological revolutions. This was precisely the prerequisite for the production of additional volumes of products necessary to meet all the needs of the community.
Economic isolation of production, that is, producers began to be considered owners. In view of this, the need arose to exchange the results of labor.

So, the first condition is a prerequisite for the emergence of commodity production itself, and the second – commodity producers.

Different understanding of the usefulness of a product from the point of view of producers and consumers

The production of natural products is associated with the concept of utility, that is, any product of such production has this property. In other words, it is able to provide certain human needs, even those that are detrimental to health (drugs, alcohol, cigarettes, etc.), since this can satisfy the corresponding either biological needs or spiritual needs.

Manufacturers of products regard them as a set of material properties that allow them to obtain the required utility. An example is iron ore, which is assessed based on the quantitative content of iron in it, or milk, which has a certain amount of vitamins, proteins, fats, milk sugar, etc. That is, there is a direct relationship between the amount of nutrients in a product and its quality.

Consumers are quite often guided by their subjective assessments of the benefits of a good, while neglecting their important objective qualities. Natural products are perceived by them from the perspective of personal needs, preferences and tastes.

Characteristics of natural production in this aspect boils down to the fact that the range of useful manufactured products that are created for consumption within an economic unit is very limited. In contrast to the second form of production, based on the principle of social division of labor, in which not only the quantity and range of manufactured products increases, but also the properties of the goods change.

Nuances of accounting for products in physical terms within certain types of economic activity

The corresponding lists relating to the production of a certain range of goods include products that are manufactured by the organization both from its own reserves of materials and raw materials, and from unpaid semi-finished products attracted from outside (raw materials supplied by customers). It is intended for transmission to other individuals and legal entities, its divisions and its own capital construction, and then for inclusion as an element of current assets or fixed assets. For example, special equipment, special clothing, which is issued to our own personnel on account wages or spent on personal production needs.

For each range of products that are accounted for in monetary terms (for example, furniture, medicines etc.), as well as information regarding production and product balances, accounting is carried out at actual cost or at corresponding discount prices. And if the goods are manufactured using raw materials supplied by customer, then accounting is carried out at the total cost, including prices for these raw materials.

Production of products in kind may also include in their reports information regarding the release of prototypes, if, according to the production technology, they are recognized as fully completed, are accepted by the relevant technical control service and own necessary document, acting as confirmation of their quality and compliance with mandatory standards.

Production and sales plan

It acts as a central section of both strategic and current plans. Its goal is to ensure growth in product output, significantly improve the quality of goods, better satisfy consumer demand and use production capacity and raw materials to the maximum.

What indicators are calculated in this plan?

It allows you to determine the required quantity and range of products intended for production according to the following indicators:

1. Production volume in physical terms:

finished products (processed and in compliance with state and international standards and technical specifications);
semi-finished product (not all stages of processing have been completed, it is considered the final product of the corresponding stage and the starting material for the next one);
work in progress (at the processing stage, all stages within the workshop or enterprise have not been completed);
products of auxiliary workshops (steam, electricity, water supplied for own needs or to third parties).

The use of appropriate natural meters is based on the use of certain physical and technical properties processes and objects. So, for example, bread products can be measured in basic units of mass - kilograms or tons.

The volume of production in physical terms of each division is taken into account by summing up its components: finished products, semi-finished products and work in progress.

2. Volume of production in conditionally physical terms.

3. Production volume in value terms.

4. Indicators of the existing production capacity of the enterprise.

5. Indicators characterizing the quality of products.

The main advantage and main disadvantage of natural meters

The positive aspect is expressed in the fact that these meters make it possible to visualize the physical volume of the object being taken into account.

Their main disadvantage is the limited ability to generalize various accounting objects.

Natural indicators are summarized only for homogeneous operations. Heterogeneous objects cannot be summed up. As a result, it is impossible to get a general idea about them.

Analysis of the production plan in physical terms

Its implementation is assessed in the following areas:

established nomenclature;
number of orders;
the number of certain contracts;
the range of products of individual types of production.

Two directions for assessing the output of a certain range of products

Firstly, it is necessary to analyze the annual plan and growth rates in comparison with the previous period.

Secondly, production in physical terms is studied in dynamics over a certain number of years.

Assessment of plan implementation by nomenclature

It is based on a comparison of the established plan target with the actual quantity of products produced in the corresponding physical terms, as well as the volume of products produced in the previous reporting period.

For each assortment, the degree of plan fulfillment is established in percentage terms, and the deviation from it and from the production output of the previous period is determined in absolute terms.

You can also install:

the number of product groups in which the plan was met or exceeded;
the number of types of products produced outside the plan;
the number of types of products established by the plan, but not produced in a given reporting period.

Answer

Economic science highlights:

Subsistence form of farming (production);

The commodity form of the economy (production).

Historically the first of the common economic forms subsistence farming appeared.

Natural economy- this is a type of economy in which the products of labor are intended to satisfy the producer’s own needs, that is, for consumption within a separate economic unit.

The origin of natural economy dates back to ancient times, when there was no social division of labor and the product of labor did not take a commodity form. In a subsistence economy, production, as a rule, coincides with consumption, which creates a certain stability of the economy. The basis of subsistence farming is agriculture combined with domestic industry. In its pure form, natural economy existed under the primitive communal system, but was most developed under feudalism. Subsistence farming predominates on the basis of any system of personal dependence, both slave and serfdom. It performed in various forms: primitive community, Asian community, German community, Slavic zadruga, etc. In pre-reform Russia, subsistence farming was the basis of the corvee-serf system. Under feudalism, the surplus product took the form of natural duties and payments in favor of the feudal lord. Subsistence farming is characterized by routine technology, which makes it possible to ensure only production at the same level, i.e. simple reproduction.

Subsistence farming existed in all pre-capitalist socio-economic formations. It also exists in the modern Russian economy. Small farmers, as well as peasants on their own personal plots and city dwellers in their dachas predominantly conduct subsistence farming, consuming most of the produced labor products in their family. Subsistence farming is preserved in economically less developed countries, in which tribal and feudal relations still exist.

Question 24 Commercial farming

Answer

Commodity farming- this is a type of social production in which the products of labor are produced not for one’s own consumption, but for exchange through purchase and sale on the market, i.e., to satisfy the needs of other people.

For the existence of commodity production, two conditions are necessary:

Social division of labor;

Economically isolated commodity producers.

It is important to note that the presence of a social division of labor does not mean the presence of a commodity economy. Thus, within a separate community there was already a division of labor: some members of the community fished, others hunted, others made tools, etc. However, there was no commodity economy, because the products of the labor of individual members belonged to the entire community and were consumed without being exchanged. The exchange of labor products occurs between independent, isolated producers. Therefore, for the existence of a commodity economy, a second condition is necessary - the presence of economically isolated commodity producers.

Three major social divisions of labor are known in history: the separation of pastoral tribes, the separation of crafts from agriculture, and the separation of trade. The social division of labor is an important factor in saving labor and increasing its productivity.

Commodity farming is the opposite of natural farming; it is an indirect form of recognition social labor through purchase and sale. It arose during the period of decomposition of the primitive communal system, developed under slavery and feudalism, and assumed a universal character under capitalism, when human labor power as a combination of physical and mental abilities to work. With a developed commodity economy, not only the products of labor, but also factors of production (means of production and labor) are transformed into goods. In a commodity economy, the labor of the producer becomes not only isolated, but also hidden social, since goods are produced to satisfy the needs of other people.