Capitalist society can only emerge and develop if the environment is right. As this form of economic relationship heavily relies on the possibility of individuals to freely exchange goods and services, commodities are a key element of capitalism. Commodities come in many forms, and they include everything that can be sold in the market. This category can be divided into capital goods and consumer goods. Land, resources, machines, tools, and other things that can be used for production fall into the capital goods category. In contrast, customer goods include items that are purchased by people for personal usage. Private possession over means of production is a central element of capitalism because it allows entrepreneurs to create value that is in demand in society.
In addition to that, the market economy requires free labor that can be exchanged for money in the form of a wage. This element of capitalism is vital to transform capital goods into consumer goods. The integration of labor power and means of production creates the fourth essential element of capitalism – production. Finally, the market economy requires money as standard means of exchange and payment. Money facilitates the processes in the market, saving as an intermediary between buyers and sellers. Money also serves as a source of the universal scale and equivalent of value. Thus, the main elements of the capitalist society include commodities, means of production, labor, production, and money.