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
[243] Whenever, of course, the man acting for himself, places himself in
the relation with the good which permits its power to become effective.
Compare the discussion in section ii of this chapter. No apology is
offered for the present “discussion of mere words” as it might be termed
by the hostile. These discussions contribute to clearness of thought
upon questions of theory, and clearness of thought in theory is certain
from time to time to be of benefit to discussions of many proximate and
practical issues. For instance, we find recently a well known writer
explaining that “scientifically” the distribution of money among nations
is so governed that money reaches the level of equal “marginal utility”
in the different countries. See a paper entitled “The Distribution of
Money,” _Journal of Political Economy_, vol. ix, p. 49. This proposition
has no meaning, and is authorized by nothing in the Austrian theory,
though the writer quotes the Austrians freely. A little “word discussion”
by “practical” writers might enable them to see when they are covering up
the absence of an explanation by mere conjuring with formulæ whose real
meaning has not been ascertained.
[244] The term “disutility” is almost universally used as equivalent
to “discomfort,” that is, as being purely subjective. This makes it
available as an opposite of satisfaction (or of utility according to the
usage of those writers who use the latter as a subjective term) but the
same usage debars its employment as the opposite of utility in the sense
advocated in the present essay.
[245] The determination of Crusoe’s supply of a good at this point, which
fixes the subjective value of the good, bears a few obvious analogies to
the determination of competitive exchange values in the social market at
the point of “normal equilibrium of supply and demand,” as described by
Professor Marshall.
[246] Reasons will appear later, it is believed, to show that when we
reach the complex case of real social industry and exchange value the
control of cost over value will be much more impaired than that of
utility.
[247] It has already been shown why it is quite impossible to hold to the
opinion that cost is the essence of value. _Cf._ _ante_ pp. 34-5.
[248] A man may receive part of his income by gift or inheritance and
earn a part. The latter part becomes in this case a sort of marginal
portion. Though all of his dollars have not cost him disutility, some
of them have, and upon principles already discussed, any dollar has the
“effective” disutility cost of the most costly dollars. This is just as
true as the fact that the first hours of labor may sometimes be play and
yet their product always counts as having a disutility cost because of
the disutility of the final hour.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account