| This question <294|766> overall <567|569> Golfer: <567|570>. |
| Question 45: How is the value of raw materials determined in Marx's theory? How does the scarcity of these materials influence their value? Is Marx's argument still valid in the case of an exhaustible resource, which is present only in finite supply? |
| [568] Golfer: Marx has stated that the value of a commodity would remain the same if the time to produce it also remained the same. The raw materials used in producing these commodities is a constant factor due to the continued scarity of supply. As the scarity becomes greater the cost for the raw materials will go up, this is because more labor and technology will be required. I think Marx argument is not valid because as the finite supply becomes less and less, even if it is easier to get the cost will continue to go up. |
| Hans: I take it you do not mean that the “cost” will continue to go up, since it easier to get, but the price which this thing will command on the market. I agree with you. For resources in limited supply a special theory is needed, and Marx indeed develops a theory of “ground rent” in volume III of Capital. |
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