Page "Simple commodity production" Paragraph 5

The large-scale transformation of simple commodity production into capitalist production based on the wage labour of employees occurred only in the last two centuries of human history.

It is preceded by the strong growth of merchant trade, supported by financiers who earn rents, profit and interest from the process.

The merchants not only act as intermediary between producers and consumers, but also integrate more and more of production into a market economy.

That is, more and more is produced for the purpose of market trade, rather than for own use.

The initial result is known as " merchant capitalism ", which flourished in Western European cities in the 17th and 18th century.