Marxist Theory Of Commodification

Karl Marx (1975) implied the importance of ‘commodity’ throughout his work. He argued that commodities played an important role in the formation of Capitalism as commodities where sold and bought in the market to increase the profit and sustain Capitalism. This Marxist ideology led to the formation of ‘commodification’. Contemporary Marxists argue that commodification is a term used to explain the extent to which welfare services are sold and bought from the market just like commodities. Thus having an exchange value – those objects that do not have an economic value are assigned a value. The Marxist understanding of commodity is different as they state that commodification is about unsalable things becoming salable and hence becoming profitable.

The first classification is the Social-Democratic welfare state model where such regimes are highly decommodified - welfare services are subdivided by the state and universal for all citizens. Such countries include: Denmark, Finland, the Netherlands, Norway and Sweden. The second type, is the Conservative Corporatist Model where welfare services may be highly decommofied but aren’t necessarily universal. The amount of benefits to which a citizen is entitled to depends on their position in society. This regime may not be aimed at eliminating inequalities but at maintaining social stability, strong families and loyalty to the state and an example of such countries include Austria, Belgium, France, Germany, Spain and Italy. The last model is the Liberal model where welfare is highly commodified – it is sold through the market. Means- tested benefits are available to those in real need but they’re stigmatized. The majority of the people are expected to purchase their welfare as the state only interferes to reduce poverty and provide for the basic needs. Australia, Canada, Japan, Switzerland and the US are a good example of the Liberal model

These benefits are mostly decommodified - free for all; however we still contribute in order to get these services. We pay taxes & the National Insurance to sustain these welfare services. Nonetheless, these benefits are still given for free unlike other countries in which citizens still pay taxes and do not get such services.
Nevertheless, one has to keep in mind that once commodification is put into action there is less dependency. If Malta had to be commodified it would create advantages but also disadvantages. People would be stopped from taking advantage from these benefits for example faking health problems in order to get unemployment benefits, single-parents living with a partner, people receiving unemployment benefits and carry out undeclared work etc. Commodification would reduce these abuses as they would have to buy the benefit in order to get it. Moreover, people would be encouraged more to work and not rely on the state in order to get benefits. However, one has to consider that if commodification only existed in Malta, people wouldn’t be able to pay certain surgeries, medicine and vaccinations; we might have dropouts from education as people wouldn’t be able to pay school fees, uniforms, text books etc; people