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 difficulty exists solely because many single production goods, such
for example as iron and wood, or pre-eminently common labor, enter into
a variety of products. When several various products are related to
one another by reason of the fact that a common production good enters
into all of them, we may, following von Wieser, call them “cognate
products.” If cognate products A, B, and C are made in part from the
common production good P, P will derive its value from the values of A,
B, and C, but the value of P itself will have a peculiar reactionary
effect, yet to be described, upon the value of these products taken
individually. This reaction is the phenomenon really at the foundation
of the law of entrepreneur’s cost. For an instant permit a supposition
quite contrary to fact. Suppose that A, B, and C are made entirely from
P so that no other production good enters into them. Then the exchange
values of A, B, and C will be derived solely from the “marginal” utility
of these products, but their exchange values are peculiar in this, that
they will be related, will be adjusted, each to the others by reason
of their common origin in P. If a unit of P entering into A attains in
that form a higher value that when entering into B or C, then more A’s
will be made from P and less B’s and C’s. The increase in the supply
of A’s will decrease their value _by decreasing the marginal utility_
of A’s.[227] This process keeps the values of A’s, B’s, and C’s in a
mutual adjustment. If we carelessly confine our view to a part of this
process of adjustment, we see what appears to be a determination of the
value of A, the product, by the value of P, the production good. If
the value of A is out of adjustment with its cost in P, and then the
adjustment is effected, it is the value of A which seems to move to
that of P. The value of P may seem to be the independently determining
factor. As a matter of fact, in the first place, the value of A moves
only when its marginal utility has been altered by a change of its
supply, and in the second place, when it does move toward the value of
P, that of P also moves toward it. It depends on the relative importance
of A’s in comparison with all of the rest of the products of P, how far
the value of A moves and how far the value of P moves in their mutual
adjustment. If it is discovered that the two stars in a “double star”
are approaching each other, we easily conceive that both take part in
the moving. But when an apple falls to the earth it is more difficult
to realize that the earth also falls toward the apple, moving its due
proportion of the distance between them. In the same way, when we see
that the value of some relatively unimportant product remains equal to
its cost of production, we are inclined to state the case as one of
pure determination of value by cost. But this “determination” is but
a part, viewed by itself, of a larger process by which the supplies,
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