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
It “generally happens that the bulk of the value of each commodity
follows one law, ... while a small remaining element is governed” by the
other law.[187] This unsatisfactory idea is at times better expressed in
another way, namely, the law of costs governs a good’s value in exchange
with commodities produced by the same order of laborers, but not in
exchange with commodities produced by different orders.
“The true conception of the law of cost is thus, not of a law
governing universally the values of any class of commodities,
but that of one governing the values of certain commodities in
certain exchanges.”[188]
7. We come now to the second coördinate principle of value, existing in
addition to the principle of cost of production, and held to divide with
it the control of actual values. This is the so-called law of reciprocal
demand. It is simply Mill’s law of reciprocal demand as developed by him
to explain international values, applied by Cairnes to the “strictly
parallel case” of inter-group values. International and inter-group
values, or the relative prices of the products of different nations or of
different groups,
“do not vary at random irrespective of rule or measure, but
exhibit precisely the same tendency to gravitate towards a
central point as is manifested in those exchanges which are
governed by cost of production.”[189]
These words surely attribute a very exact control of values to the
“principle of reciprocal demand.” But after perusing a very interesting
piece of text (pp. 99-105), in which Cairnes applies Mill’s doctrine of
international value, point by point, to the problem of non-competing
groups, we come upon a very important difference between this principle
and that of cost in respect to control of values.
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