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
and consequently the values, of cognate products are being adjusted to
one another. The whole truth is that the value of production goods is
determined by the value of their products. Because of the existence
of great common production goods of manifold productive uses, we
have the peculiar reaction of the value of production goods on the
value of products, a part of which process is described in the law of
entrepreneur’s cost.
The case of real life is more complex than the one considered above in
that a plurality of common production goods always enters into a product.
In this more complex case we find an entirely new problem, which rejoices
in the name of the “imputation of the productive contribution,” but
the explanation of the law of entrepreneur’s cost remains exactly the
same in principle as that given for the artificially simplified case.
When a product is made from several production goods, as a carriage
from wood, iron, leather and labor, the value which by anticipation the
production goods derive from the product is divided among them. The share
of value of each production good is called its productive contribution.
The different solutions of the problem of imputing the productive
contribution already offered in the literature of value and distribution,
will not be discussed here.[228] One principle, however, will be taken
for granted. It will be assumed that the productive contribution of any
kind of production good in the value of a particular kind of product
varies inversely with the supply of this production good which is
turned to the making of that kind of product. If product A is made from
production goods P, Q and R, and the amount of P used in producing A’s
is increased—with or without an increase in the amount of Q’s and R’s
used[229]—the productive contribution of a unit of P in the value of A’s
will be decreased.
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