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[113] Hans: According to the Labor Theory of Value, Costs are Smaller than Value. Dyoung [110] gives the following
description of the process by which commodities are valued: “it
simply takes x amount of labor and other costs to create the
commodity, so therefore the commodity costs y.” This suggests
that the value of a commodity is determined by its cost (with labor
costs being a large part of this cost). This is not the same
as Marx's labor theory of value! According to Marx's theory, workers
add more value to the product than they get in wages. I.e.,
the labor costs systematically underestimate the value
created by direct labor. I tried to say this already in [45]. This is one of the most
basic things you need to understand about Marx's theory (or any
classical labor theory of value, for instance Ricardo). Don't expect
a good grade if you don't understand this. |
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