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I'm not sure that the labour theory of value is related to "supply and demand" as you say. If I remember correctly, labour theory of value says that all value
by RobertoG 10y ago
I'm not sure that the labour theory of value is related to "supply and demand" as you say.
If I remember correctly, labour theory of value says that all value come from work, that is: you have nature, you have capital (that is work already done) and the only way to create more value is working. If after consuming the product of that new work, you have surplus, you have new capital available.
How is that related to supply and demand?
- MrBuddyCasino 10y agoIf I remember correctly (and its been a while since I've read Das Kapital), Marx tried to explain why a good costs what it costs, where its value really comes from. So he was dissecting the different parts that went into its creation only to conclude that they really weren't different parts, but that it all came down to labour in the end - basically what you said. His theory however did not explain why the value of a good fluctuates over time, like the price of bread in times of bad harvests, and I have some fuzzy memories of weird corner-case explanations to maneuver around this issue. Today we know that no matter how much human labour went into the creation of something, in the end the laws of supply and demand determine its price. I could be wrong though and thats not what Marx goal was, after all.
- RobertoG 10y agoAgain from memory, but I think that price and value are related but not the same thing. Prices would be determined by supply and demand, but value would be, by definition, anything added to the inputs. I think I will spend some time looking into it.