Production Processes Part - 1

You can read about the structure of the economy in this article. You'll be familiar with the various aspects of production processes. The economist's perspective is presented in order to accomplish this. We have also talked about the connection between technology and productivity, as well as other related issues like land rights and social factors in production. 

A socially defined activity, production is also a social activity. In a sense, society does decide what production is acceptable or unacceptable. In order to produce something, one must create something that society values. A "product" is the term used to describe the valuable item. Using and exchanging a product have value. Value in use, also known as use value, is the benefit one gets from using a good or service. An item might occasionally serve a purpose for some people but not others. Cigarettes and beedis have no purpose for a nonsmoker, but they do for smokers. Goods also need to have exchange value, or the idea that they are worth trading for other things, in addition to use value. Only when these two conditions are fulfilled can an abject or thing be regarded as a product. As a result, if someone invests their time and money into creating an item, but the item is not valued in the senses described above, it cannot be considered a product. What is regarded as a product in one society may not be regarded so in another. Cow dung cakes, which are used as fuel in India, have a market value. Therefore, it will be necessary to factor in the value of cow dung cakes when assessing the nation's production. Other Societies won't experience this. Or consider the instance of gold in India. Gold is valued higher in India than in other societies because it is thought to be a prestigious metal connected to the gods. Hence the goods that constitute one society's production need not be the same as that of hother. But it should be stressed that as the markets have expanded and are getting integrated to encompass the whole world, there is greater agreement among countries as to the goods that constitute production.

In the past, the answer to the question "does production only refer to the creation of goods?" was "yes.". Adam Smith, widely regarded as the founder of modern economics, asserted in his 1776 book "Wealth of Nations" that only those involved in the production of goods can be considered productive. He continued by citing this standard to show that, despite how prestigious they may be regarded, the services of statesmen, clergymen, professors, artists, and others are not beneficial. When we talk about the effects of production, many of us still carry this notion around in our minds. The obvious fact that research, teaching, and the formulation of appropriate economic and political policies for the nation may significantly contribute to the task of increasing a nation's production is overlooked if the services of scientists, researchers, teachers, politicians, and other such individuals are disregarded. The Adam Smithian distinction will be misleading in the modern world because intellectual activity has significantly influenced the development of new products and procedures. Additionally, as with medieval professionals and performers. Despite appearing to be unrelated to productive work, their services indirectly improve productivity and the well-being of the workforce. Thus, when calculating a country's total production, services—even those not directly related to the production of goods—must also be taken into account. Similar to how goods are viewed in society, so too must these services be.

Some services are excluded from the definition of production even when they are taken into account. Numerous economists have noted that the contribution of women is not taken into account when calculating a nation's total production in a given year. Women who perform a variety of domestic tasks, such as cooking, washing, and caring for children, as well as assisting their menfolk in agriculture, are treated as dependents rather than workers. Because their contributions to the total value of production are provided without compensation, the statisticians ignore them. But the economists correctly point out that statisticians determine the value of the quantity of food grains produced by farmers (typically men) for their own consumption. This behavior demonstrates how society is inherently biased against women. After all, women's work is not only valuable in and of itself, but household work also plays a significant role in sustaining a nation's overall economy. Women free up their men to work in the various factories and farms by taking care of household duties, helping to increase the output of a country. This illustration demonstrates in a striking way how a society's values define what is productive and what is not productive.

The communist movement's expansion in countries like China, Vietnam, Cuba, and Eastern Europe are all attributed to Karl Marx, as well as the 1917 Russian revolution. Marx (1818–1872) wrote about the major social and political issues that dominated European intellectual and political circles during his lifetime. His contributions to the knowledge of social and economic changes in Europe were not acknowledged by the intellectuals and social scientists of his time. But after his passing, this neglect was more than made up for. Today, nearly all social scientists must accept Marx's theory or theories derived from Marxism. Additionally, this holds true for political movements. Marx's insightful analysis and profound insights did open up fresh perspectives on social change and growth.

Marx prioritized the "material forces of production" and the "relations of production" in his analysis of social change. Marx primarily refers to technology when he uses the phrase "material forces of production.". The technological advancements that have taken place throughout human history, viz. The printing press, the steam engine, and mass-production machines all demonstrate how these forces of production are constantly expanding and how society should be amenable to such technological advancements. Even if the printing press or the steam engine are developed, a time will come when their continued advancement will conflict with the current social structure. Then, the social order must alter to make room for a new one that permits the continued development of the forces of production. In place of what he refers to as "relations of production," Marx refers to social order. Although these relationships are not entered into voluntarily, they are specific ones that men have with one another in order to help society produce the goods and services it needs. These relations of production refer to the interactions between a landlord and his serfs during the feudal era or between capitalists and employees during the capitalist era. The owner of the production machinery employs laborers to work on his assets while also owning the machines that are used in production. Since they no longer possess the means of production and are only permitted to sell their labor on the open market, the laborers hire themselves out to the capitalist.

According to Mary, the last antagonistic or incompatible relationships are those in the production system, particularly those between capital and labor. The worker receives a wage that is significantly less than the value of the labor he performs, which allows the capitalist to profit from the situation. A time will come as the capitalist forces of production advance when the current production relations, i.e. The capital-labor relationship demonstrates to be a barrier to the further development of the forces of production. At this point, the social order will change so that the capitalists are eliminated and the entire society owns the capital.

According to Marx, the economic framework or infrastructure of a society is made up of the forces and relations of production. This economic structure serves as the cornerstone upon which the superstructure, or legal, political, and social structure, of the society is erected. Marx appears to be using a building here as an example. Although the building's foundation cannot be seen, it is crucial to determine the building's maximum number of stories, as well as its maximum length and width and wall thickness. He seems to imply that social interactions, legal and political structures, and the principles and values that underpin them are all influenced by the economic structure of the society. Marx emphasizes that in order for technology to advance, production relations must also do so, and these relations will only mature and develop under favorable technological conditions. The potential for the development of political and social institutions, as well as the beliefs and values that support them, is determined by technology and production relations taken together.