This article is intended to introduce new ideas into the discussion of the Marxist Labour Theory of Value and of value theory as a whole. The author demonstrates that the classical interpretation of the Marxist theory of value is flawed because it describes an idealized concept of value. The author shows a way of comprehending value as a real social relationship. In so doing, he shows that the value is not only related to the products of human labour. The concept of value obtained in this way can be used for all goods and activities subject to exchange.
Table of Contents
1 Costs, Surplus value and Value
2 Unpaid labour time cannot be defined as a production factor
3 Expected value and offer price
4 Expected value
5 Reference points for value relationships
6 The market
7 The value is established on the market
8 The driving forces for value creation
9 The social relationship value: characteristics
10 The components of value
11 Value is assigned to commodities and their value equivalents at the social level by means of value relationships
12 The Social Relationships Value and Property
13 Prerequisites for value relationships:
14 The value and its reference points - how are the reference points formed
15 Comparison of human and mechanical labour power and the labour power Nature
16 How reference points of value relationships are integrated into society
17 Human and mechanical labour power and the labour power Nature
18 The economic exchange
Objectives and Core Topics
The primary objective of this work is to critically re-evaluate the classical Labour Theory of Value and propose an alternative framework that defines value as a social relationship formed on the market, rather than as an intrinsic property of commodities created during production. The research questions focus on how value is established, the role of social relationships in exchange, and the integration of non-human and mechanical labour into modern economic theory.
- Deconstruction of the classical Labour Theory of Value and the concept of surplus value.
- Definition of value as a dynamic social relationship between buyers and entrepreneurs.
- Role of "reference points" and quality improvement processes in economic valuation.
- Distinction between "potential commodities" and "real commodities" established through market exchange.
- Future implications of automated production and the potential for a basic income model.
Excerpt from the Book
7 The value is established on the market
Value creation does not mean the creation of foundations or prerequisites for value relationships. Value is formed as a social relationship between people, specifically between buyer and entrepreneur, in relation to the commodities exchanged.
The value describes how buyers and sellers relate to each other in relation to the exchange commodities. It describes what part of one's own right to a percentage of all commodities to be economically distributed in the currency area, i.e. what amount of money the buyer gives the entrepreneur as payment for his commodities.
The value is formed by buyers and entrepreneurs together when they have agreed on a common magnitude of value and then exchange commodities for money: This common magnitude of value can be formed in dialogue - this is typical of the bazaar and wholesale trade, but in most cases (in terms of numbers) it is achieved by the buyer adapting to the entrepreneur's proposals - department stores and supermarkets are typical of this.
The seller has included his potential commodities together with his expected value in the form of the offer price in the value relationship. The buyer will adapt his perception of the potential commodities to that of the entrepreneur or try to bargain. He then brings his resulting assessment of the labour results into the value relationship in the form of the value equivalent in the amount of the common magnitude of value, usually in the form of the money. Or he refrains from buying, leaving the value relationship without a successful conclusion.
Chapter Summaries
1 Costs, Surplus value and Value: Discusses Marx's traditional breakdown of production costs (constant and variable capital) and the concept of surplus value as the goal of capitalist production.
2 Unpaid labour time cannot be defined as a production factor: Critiques the graphic simplification of "unpaid labour" and argues that such time cannot be determined on the production side.
3 Expected value and offer price: Explains that production only yields "expected values," and actual value is only determined once a buyer accepts the offer on the market.
4 Expected value: Elaborates on the uncertainty of surplus value realization, noting that without a sale, labour remains merely "necessary labour time."
5 Reference points for value relationships: Establishes that production creates prerequisites or reference points, but not final value, until the market interaction occurs.
6 The market: Analyzes the market as the site of interaction where buyers and entrepreneurs meet to negotiate the utility and value of potential commodities.
7 The value is established on the market: Central chapter defining value as a social relationship formed through agreement, rather than an objective quality inherent in the product.
8 The driving forces for value creation: Identifies economic needs and resource optimization as the primary forces driving the formation of value relationships.
9 The social relationship value: characteristics: Details how buyers and entrepreneurs validate value through mutual assessment and market agreement.
10 The components of value: Breaks down value into objective market magnitudes and the idealized components held by the exchange participants.
11 Value is assigned to commodities and their value equivalents at the social level by means of value relationships: Applies the social value concept to various commodities, including technical products and labour power itself.
12 The Social Relationships Value and Property: Contrasts the social character of value with property, highlighting how both function as social conventions.
13 Prerequisites for value relationships:: Outlines the necessary conditions for value formation, such as scarcity and effect on the exchange partners.
14 The value and its reference points - how are the reference points formed: Explains that reference points are created through "quality improvement processes" involving human, mechanical, and natural labour.
15 Comparison of human and mechanical labour power and the labour power Nature: Compares different forms of labour power, emphasizing that all require means of subsistence and contribute to quality improvements.
16 How reference points of value relationships are integrated into society: Discusses how indirect contact between buyer and production processes influences value through entrepreneur-buyer strength dynamics.
17 Human and mechanical labour power and the labour power nature: Explores the increasing role of automation and the theoretical implications for future economic models like unconditional basic income.
18 The economic exchange: Provides a holistic view of economic exchange, illustrating how different sectors and labour types contribute to the total value volume.
Keywords
Labour Theory of Value, Social Relationship, Market Exchange, Surplus Value, Potential Commodity, Reference Points, Quality Improvement, Capitalist Production, Economic Exchange, Utility Value, Socially Useful Labour, Automation, Unconditional Basic Income, Value Equivalent, Means of Subsistence
Frequently Asked Questions
What is the core argument of this work regarding the Labour Theory of Value?
The work argues that value is not an intrinsic quality created by labour during production, but rather a social relationship that is only established on the market during exchange.
What are the central themes of the book?
The central themes include the demystification of value, the distinction between potential and real commodities, the social nature of economic interactions, and the changing roles of human, mechanical, and natural labour in production.
What is the primary goal of the author's proposed value theory?
The goal is to move away from the classical interpretation of value as "objectified labour" and to provide a more accurate model that explains market outcomes, including failures and surpluses, which classical theory struggles to address.
Which scientific methods are employed in this analysis?
The author uses conceptual analysis and logical deduction, critiquing existing Marxist economic definitions through updated "value formulas" and graphical representations of market dynamics.
What is covered in the main body of the text?
The main body systematically deconstructs components like constant/variable capital, the role of the entrepreneur, the necessity of market validation, and the inclusion of nature and technology as "labour power" in modern value creation.
Which keywords characterize this work best?
Key terms include Social Relationship, Market Exchange, Potential Commodity, Reference Points, Quality Improvement, and Labour Power.
How does the author categorize nature in the context of labour power?
The author views nature as a provider of "labour power" that performs quality improvement processes, much like machines, and notes that humans are increasingly forced to invest in its maintenance due to long-term usage.
What is the author's speculation regarding automated enterprises and basic income?
The author speculates that in a future of fully automated production, the surplus value generated without human labour could theoretically be redistributed via an unconditional basic income, though he acknowledges significant practical barriers to this implementation.
- Arbeit zitieren
- Rainer Lippert (Autor:in), 2020, What is wrong with the Labour Theory of Value? How value is really created, München, GRIN Verlag, https://www.grin.com/document/933277
