undefined | Better HN

0 pointsGormo2y ago0 comments

> According to Marx, value is only created with human labour. This is not just a Marxist theory, it is an observation.

And yet it's completely and absolutely wrong. Value is created by the subjective utility offered to the consumer, irrespective of what inputs created the thing conveying that utility.

0 comments

thiagoharry2y ago

You are using marginal utility value theory. Parent comment is using labor value theory. In fact, there are also other value theories in economy. It's a mostly philosophical choice, and like other philosophical choices, it's not possible to accuse one of them of being wrong. It's a matter of choosing your philosophy, and understanding different philosophies.

GormoOP2y ago

> You are using marginal utility value theory. Parent comment is using labor value theory.

Yes, I'm aware. This is precisely why I'm stating the prior comment to be "absolutely wrong". Marginal utility is a substantially valid model, LTV is not.

> In fact, there are also other value theories in economy. It's a mostly philosophical choice, and like other philosophical choices, it's not possible to accuse one of them of being wrong.

Sure it is. These aren't theories in a normative sense, they're models of causality for manifest phenomena. They're closer to scientific theories than they are to philosophical axioms. LTV simply doesn't bear out with observation.

j / k navigate · click thread line to collapse