On the other hand, substances may be very valuable which have cost
little or no labour. When a shepherd in Australia happens to pick up a
nugget of gold on the mountain side, it takes no labour worth mentioning
to pick it up, yet the gold is just as valuable in proportion to its
weight as any other gold. Some gold mines produce a great quantity of
gold: others which have cost quite as much to sink, produce little;
nevertheless the gold out of the one mine is sold at the same price in
proportion to its weight and fineness as that out of the other mine.
#Thus it is quite certain that labour is not the cause of value.# Gold
is valuable because a great many people want more gold than they have
already got, and whenever a thing is valuable it is because somebody
wants it.
But we may look at this matter in another way. If it were possible to
get a valuable thing like gold with little labour, many people would
become gold miners. Much gold would then be produced; if this were
wanted as much as what was already in use, it would be as valuable. But
no one wants an unlimited quantity of any substance. Wealth, as we saw,
must be limited in supply; if gold became as plentiful as lead or iron,
it could not possibly remain as valuable as it is now. People would have
far more than they could employ for ornaments, watches, gilding and so
forth; there would be a large surplus to be used in making pots and
pans, for which it is less needed. Now we can see through the whole
subject of value. When much of a substance can usually be produced with
little labour, the substance becomes so plentiful that people are
satisfied with the supplies of it which they have; they do not want
more, or at least do not want it so urgently. It follows that they are
unwilling to give much wealth for it. Thus the labour spent upon
producing a commodity does not affect the value of that commodity,
unless it alters the quantity of it which people can get, and thus makes
a further supply of the commodity more or less useful than before.
Public-domain text, read in full here on John Shaqi.
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