History and criticism of the labor theory of value in English political economyWhitaker, Albert C. (Albert Conser)
History
History and criticism of the labor theory of value in English political economy
Whitaker, Albert C. (Albert Conser)
Economics -- Great Britain -- History; Labor theory of value -- Great Britain -- History
In a similar way it can be shown that the _effective_ utility of a
product A produced by the first hour of labor is the same as the actual
utility of the product B produced by the tenth hour. For if A were to
be lost, destroyed, or traded away, another A could be produced in its
stead through the sacrifice of a B, by turning the tenth hour from B to
the production of an A. In effect, then, upon the possession of A is
_dependent_ merely the utility of B. The utility of a good is defined as
its power to afford satisfaction, but the “effective utility” of a good
as conceived by Professor Clark is, we may say, the power of that good
over a man’s satisfactions, taking into consideration the adjustments he
may make in his productive activities in case of the loss of that good.
If he produces this same good over again, and instead goes without some
other good, _in effect_ he foregoes the utility of the latter, and this
is precisely the _effective utility_ of the first good.[237] Thus, in
Professor Clark’s view, the utility produced by the last increment of
a man’s labor affords a unit for measuring the effective utility to him
of any and all the freely producible products of his labor. But it has
already been shown that the _disutility_ of this last increment of labor
is equal to the utility produced by it. Thus terminal disutility becomes
also an available unit of “subjective” or esteem value, and Professor
Clark adopts this as the “ultimate standard of value” upon the ground
that pain is a more convenient measure than pleasure.[238] The theory
signifies that the subjective value to the isolated producer of any good
whose supply depends on labor can be most conveniently measured by the
labor cost of that good. To quote:
It follows that, in the case of an isolated man, we may
measure the subjective value of goods by the mere duration
of the work that creates them. All goods made in an hour are
equal in effective utility and all hours of labor are of equal
effective disutility. Destroy the product of an hour’s work,
and you injure the man by a fixed amount; make any hour’s work
unnecessary, by making nature freely supply what is produced in
that period, and you benefit the man by a fixed amount.... The
product of two hours’ work will always be of just twice as much
subjective value as is the product of one.[239]
Public-domain text, read in full here on John Shaqi.
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