The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790Malthus, T. R. (Thomas Robert)
General
The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790
Malthus, T. R. (Thomas Robert)
Currency question -- Great Britain; Value
Let us suppose, for instance, that 120 quarters of corn are produced by
ten men. If each man were paid ten quarters, profits would be 20 per
cent.; and if wages were increased to eleven quarters, profits would
fall from 20 per cent. to 9.09 per cent. Now supposing, that, instead
of ten men being directly employed, five only are so employed, and that
the other advances consist of capital which will continue of the same
value as the corn;[K] then, while each labourer earns ten quarters,
and the other capital advanced is worth the labour of five men so
paid, profits will be, as before, 20 per cent. But if the labourer be
paid eleven quarters instead of ten, profits will not fall, as before,
from 20 per cent. to 9.09 per cent., but only from 20 per cent. to
14.28 per cent.; because the advances, instead of being 110, will only
be 105; and the value of these advances estimated in labour paid at
eleven quarters each man, being only 9.54, instead of 10; 9.54 may be
considered as the number of persons employed. Then if 120 quarters
be produced by 9.54 men, 105 quarters will be produced by 8.34. But
8.34, increased by a profit of 14.28, will make 9.54, the quantity of
labour employed, and show that the natural value of labour is always
proportioned to its quantity. In the former case, when ten men were
employed at eleven quarters, as the advances were 110 quarters,
instead of 105, the labour required to produce the food of the labourer
was 9.166, and consequently a profit of only 9.09 will be sufficient to
make up ten, the number of men employed, and thus equalize the value
with the quantity.
In the case of fixed capital of considerable duration, there is always
a probability that it will alter in value in reference to the quantity
of labour, and of profits estimated in labour, of which it was composed
when first produced; but after having advanced so far in establishing
the labour which a commodity will command, as the measure of its value,
we are entitled to consider the present value estimated in labour of
any fixed capital which is about to be employed in production, as
representing the quantity of accumulated labour actually so applied.
It is further necessary, as before stated, to reckon the remaining
value of the fixed capital as a part of the produce resulting from the
whole of the accumulated and immediate labour employed. When, however,
these corrections have been made, all the cases in which fixed capital
enters, which may be said to include the great mass of commodities,
will be found to answer to the theory as accurately as the simplest
case that can be stated.
The exceptions, therefore, to the general proposition that the labour
which commodities will command may be considered as a standard measure
of their value are only apparent, not real, and may all be consistently
explained.
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