History and criticism of the labor theory of value in English political economy — John Shaqi
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
The cases of the value of standing timber, previous to the employment
of labor upon it, or of the value of old wine, which Ricardo freely
confessed were beyond his philosophy of value,[79] had no terrors for
McCulloch. In his abandonment to dogma, he solves the difficulty with
ease by the following definition, one of the most crassly ridiculous
originalities in the annals of political economy. It finds a place in
this history to illustrate to what extremes the labor theory could be
carried:
“Labour may properly be defined to be any sort of action
or operation, whether performed by man, the lower animals,
machinery, or natural agents, that tends to bring about any
desirable result.”[80]
The distinction between the operations of men and those of machinery and
natural agents is
“on the whole objectionable because it gives countenance to
the idea that there is some radical difference between the
labour of man and of machinery, etc., whereas, in so far as the
doctrines and conclusions of political economy are concerned,
they are in all respects the same.”[81]
Consider the example of a cask of wine, which is entirely finished as
far as labor bestowed on it is concerned, and now possesses a certain
exchange value. If let stand a few years it will be found to possess
additional value. To force this case, McCulloch has decided to define
whatever it be that “works” in the wine to be labor, and thus to affirm
that the increased value is occasioned by the increased quantity of labor
employed upon it. Malthus has made a rare criticism on this idea that
cannot be omitted:
“There is nothing that may not be proved by a new definition. A
composition of flour, milk, suet, and stones is a plum-pudding;
if by stones be meant plums. Upon this principle Mr. McCulloch
undertakes to show that commodities do really exchange for each
other according to the quantity of labour employed upon them:
and it must be acknowledged that in the instance which he has
chosen he has not been deterred by apparent difficulties.”[82]
Should we grant McCulloch’s definition of labor, the explanations
which he bases upon it involve an uncommonly “vicious” circle. Having
included in labor any of the operations of all “nature” which tend
to produce a desirable result, he is forced to place aside desirable
natural operations that are “gratuitous.”[83] Having no way to measure
natural operations by themselves, he decides, in effect, that whenever a
commodity is found which possesses an exchange value in excess of that
which would be proportionate to its cost in human labor, the thing to
do is to add in enough labor of natural forces to restore the desired
proportionality. Subsequently he adopted another line of reasoning,
incompatible with this one, but his later method of establishing the
absolute truth of the labor-cost theory was of the same calibre.[84]
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