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"wealth is created when you use labor to add value to natural resources" That (the labor theory of value) is exactly what all the classical economists (Adam Sm
by davidmathers 18y ago
"wealth is created when you use labor to add value to natural resources"
That (the labor theory of value) is exactly what all the classical economists (Adam Smith, David Ricardo, Karl Marx) got wrong.
- timr 18y agoNo offense, but it's fairly amusing that you're so confident about this statement, when other people in the same thread are equally confidently arguing that Adam Smith isn't saying that at all. I've got to defer to the guy who said that internet geeks don't know what they're talking about when it comes to economics.
- davidmathers 18y agoNo offense taken. My statement is so non-controversial that I have no problem saying that anyone who disagrees with it truly has no idea what they're talking about. The "marginal revolution" is one of the major events in the history of economics. EDIT - here's some useful wikipedia links: http://en.wikipedia.org/wiki/Labor_theory_of_value http://en.wikipedia.org/wiki/Labor_theory_of_value http://en.wikipedia.org/wiki/Marginal_utility http://en.wikipedia.org/wiki/Marginal_utility EDIT #2 - paragraph 3 from wikipedia: Different labor theories of value prevailed amongst classical economists through to the mid-19th century. It is especially associated with Adam Smith and David Ricardo. Since that time, it is most often associated with Marxian economics; while modern mainstream economics replaces it by the marginal utility approach.