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
If the exchange ratio of cloth to linen alters, the doctrine is that
the cause must be that some change has taken place in the quantity of
labor required to produce cloth or linen, and _not_ that the “value”
of a linen-maker’s day of labor has changed in ratio to the “value” of
a cloth-maker’s day. In other words, if ten hours of a cloth-maker’s
labor have earned the same wages (and thus occasioned the same cost to
entrepreneurs) as twelve hours of a linen-maker’s labor, “we may safely
conclude” that it is not alteration of this ratio that causes alteration
of the exchange ratio of cloth to linen. It is this ratio between the
wage-earning capacity of one kind of labor and another kind that “has
long ago been adjusted.” To make this point perfectly clear, let us quote
again:
“The comparative degree of estimation [an equivocal expression
which means comparative wage-earning power] in which the
different kinds of human labour are held ... continues nearly
the same from one generation to another, or at least ...
the variation is very inconsiderable from year to year, and
therefore can have little effect, for short periods, on the
relative value of commodities.”[57]
The question is this: In the labor-cost theory of value, does skilled
labor count as _more_ labor per day than unskilled, and if so upon what
principle? Ricardo’s argument, as just traced, avoids the question, and
is faulty in two essential points. In the first place, it is not true,
and was not true in Ricardo’s time, that the comparative skilfulness of
labor employed in producing different commodities remains unchanged.
Machine invention alone produces veritable revolutions in this field. But
in the second place (a more important point as a matter of theory), in
this argument Ricardo has shifted his ground with respect to the meaning
of his labor-cost law. This principle is stated in italics at the head of
his chapter:
“The value of a commodity, or the quantity of any other
commodity for which it will exchange, depends on the relative
quantity of labour which is necessary for its production.”
This means precisely that, if one A exchange for two B, it is because,
_at this time, without reference to changes in time_, it costs twice
as much labor to produce an A as to produce a B. But now Ricardo has
virtually changed the principle to mean that _alterations_ in the
exchange ratios of commodities will be due to _alterations_ in the
comparative amounts of labor required to produce them. This is a
different principle, and indeed one no stronger than the other. We are
forced to the conclusion that Ricardo unconsciously avoided the real
question in the case, and failed to explain away the difficulty of
skilled labor in the labor theory.
Public-domain text, read in full here on John Shaqi.
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