Social Value: A Study in Economic Theory, Critical and ConstructiveAnderson, Benjamin M. (Benjamin McAlester)
General
Social Value: A Study in Economic Theory, Critical and Constructive
Anderson, Benjamin M. (Benjamin McAlester)
Value
And all attempts to explain value in terms of these abstract factors must
become similarly entangled. The Austrians themselves have pointed out that
the explanation of value from the standpoint of individual costs involves a
circle, that costs resolve themselves into value-complexes, and that the
cost theorists are really explaining value by value.[82] I have shown that
the same is true of the Austrian attempt to reduce values to terms of
individual utilities. It is also true of Hobson's attempt to combine the
two explanations, as shown, and the same could be shown of at least the
earlier writings of Professor Marshall.[83] There is another attempt to
work out the explanation of value, still in terms of sacrifices in
production and satisfactions in consumption, but no longer from the same
standpoint, which deserves special attention here. Professor Clark, in the
_Yale Review_ for 1892, in the article above referred to, "The Ultimate
Standard of Value" (since reproduced as chapter XXIV of the _Distribution
of Wealth_), has attempted so to add up individual units of cost and
individual units of utility, as to get absolute social units of utility
and cost either of which might serve as the ultimate standard of value. It
will be remembered that I have already quoted from this article with
reference to the quantitative nature of value, and that Professor Clark
stands as the leading exponent of the conception that value is a social
fact, "is social and subjective," the value put on goods by the social
organism. In this article, he is seeking the unit of social value, the
measure of the importance of a good to society. Either the unit of social
utility or the unit of social detriment would serve, but it happens, he
holds, that the unit of detriment is the more available for purposes of
measurement, and so the final unit[84] of value is the sacrifice entailed
by a quantity of distinctively social labor (p. 261). Professor Clark
avoids the complication that labor and capital work together, by isolating
labor at the margin, in the manner made familiar in his _Distribution of
Wealth_. Assume capital constant, introduce or subtract a small quantity of
labor, and whatever of product is added or subtracted is due to that labor
only (p. 263).
This virtually unaided labor is the only kind that can
measure values. Attempts to use the labor standard have
come short of success, because of their failure to
isolate from capital the labor to which products are
due.
Public-domain text, read in full here on John Shaqi.
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