| This question <68|68> overall <67|69> Amy: <1309|257>. |
| Question 95: Why is value determined by the labor-time needed under the socially average conditions of production, rather than by the best conditions of production attained in society? |
| [68] Amy: Value of a commodity is determined by labor-time needed under ‘socially average (typical) conditions’ rather than the ‘best conditions’ by looking at labor-power and technology. I want to use the term ‘typical’ instead of ‘average’ because it makes the meaning a bit more clear and stays away from the mathematical quantification (in [2004fa:188] Hans substitutes ‘normal’ for ‘average'). |
| Labor-power (skill and intensity) is most often never equal among individuals. Marx states the typical labor-power is determined by the speed of output. The technology average (or standard) is the method that is “prevalent and/or up to date” (quoted from the annotations). So, a higher level of labor-power and the most up to date technology will reduce the labor-time needed, produce more commodities and ultimately more value. One needs to be careful though; if you base the value on the best conditions you are tipping the scales and creating a value level that is too low for most to match. The value needs to be based on the typical production conditions in order to create a market that allows for multiple production entities. Most often the best conditions are hypothetical and unattainable in the actual market. (See Hans's response to [2002fa:30] for a similar statement) |
| Hans: The values are not set by some policy maker in order to allow for a market in which multiple producers can compete, but the values are the outcome of the competition of these producers. Blind competition gives nevertheless meaningful results, results which can be formulated without reference to competition. See my [52] about this. Marx's concept of socially necessary labor is his attempt to discover the meaning in the blind market interactions. These interactions are generated by the entire market, not only by the producers with the best technology, and therefore reflect the typical rather than the best conditions. |
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