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He isfrom the economic point of view- equal to his counterpart in the process of the exchange. Though the exchange is carried out by people, their interrelations are quite impersonal. All relations mediated by exchange are horizontal and therefore in opposition to vertical relations based on personal dependence. Within the framework of exchange there is no room for any extra-economic coercion which served as the base for two major pre-capitalist modes of production, slavery and feudalism. Exchange rests on contract which, from the formal point of view, presumes voluntary consensus.

2 Neither Marx nor Engels assume, in the above quotations, that division of labour and scarcity have been superseded. The only thing assumed is a supersession of an autonomous position of both the individual producers and the economic units. To understand the ease with which Marx and Engels arrived at their conclusion, I have to follow Marx's logical construction aimed at a formal solution of the problem: 25 26 Marxism, Socialism, Freedom Further, the division oflabour also implies the contradiction between the interest of separate individuals or the individual family and the common interest of all individuals who have intercourse with one another.

Iii) The use-values are produced in accordance with the social plan. There is no guarantee, however, that the production proportions set by social planners reflect the proportions of the demand. Hence, every redundant use-value fails to be directly recognised as social labour. Owing to the social division of labour and scarcity, the permanent contradiction between individual and social labour does exist even in 28 Marxism, Socialism, Freedom fully nationalised and centrally planned economies. Since this contradiction testifies to the presence of commodity production, all hitherto known socialist societies have had to recognise, sooner or later, that the objective basis for the production of commodities has not yet been eliminated.

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