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The labor theory of value doesn't have any explanatory value, it's just a traditional belief that kept being rediscovered because it seems reasonable and value
by bcoates 8y ago
The labor theory of value doesn't have any explanatory value, it's just a traditional belief that kept being rediscovered because it seems reasonable and value theories were hard.
There really isn't any reason to "teach the controversy": marginal substitution is the only correct theory of value and it is fundamentally incompatible with other intrinsic-value theories like the LTV.
It's certainly possible that raising labor prices can make a whole industry nonviable, depressing wages and eventually leading to cost-disease extinction, but there's no reason to think trucking is anything like that -- logistics generates an enormous amount of economic value to its customers and if the labor costs of shipping went up, they'd fork out.
You can already see this happen when fuel prices change: everyone adds a fuel surcharge and the customers suck it up.