Theory of value (Marxism)

The theory of value is the design of Karl Marx of the formation of the value. In the theoretical plan it takes as a starting point the theory of value presented by David Ricardo, but of which he criticizes the association of value with the scarcity . The theory of Marx is interested especially in the concept of appreciation, i.e. the difference between the quantity of added-value by work with the initial goods and the value of necessary work to produce (wages of the employee, while simplifying a little).

Marx takes again the classical theory of the value work in order to show contradictions in the reasoning of these liberal authors. In this direction he is sometimes regarded as the last of traditional although he contradicts the majority of the conclusions of the authors of this school.

The Utilité of a good (its “practical value”) is not determining to explain the value of a good. For Marx, the comparison of two goods in order to exchange certain quantities of them (a certain quantity of flour compared with a certain quantity of iron for example) can be done only via one third variable, the value, acting as standard (this variable will make it possible to establish how much units of iron it is necessary to be worth a unit of flour and conversely). It is in fact necessary work with the production of the goods which is retained by Marx to explain their exchange value.

So that there is a exchange between the goods, it is necessary that the utilities of the objects is different, and that it is possible to compare both.

What there is of commun run between two objects, it is the work which it was necessary to provide for their production.

As values all the goods are only crystallized human work.

That applies according to Marx only to work provided to produce goods likely to be exchanged. Thus, the house work (to cook, clean, paint a table to decorate its interior) has a utility, but does not produce goods likely to be exchanged and is thus without value. In the same way, of the produced goods impossible to exchange do not have either a value (a company which would try to market shoes of too large size, for example).

What thus founds the value according to Marx, it is the quantity of work incorporated in the goods. It is the consumption of the life which was necessary to produce the object, the expenditure of the life of the man who was necessary. The value of the goods is proportional to the human working time.

Equipment, that Marx calls for the funds, indirectly transmits value to the goods. When a machine is used to manufacture an object, the transmitted value must take into account the human working time which was necessary to manufacture the machine, that one will then distribute on the full number of objects which is able to manufacture the machine before being destroyed. When the machines are powerful, or when they are easy to build, the value of the objects drops because they transmit less human work to each object. It is indeed the case for the trades strongly automated today.

The Prix of the object is the measurement of the value. This price can vary (with the difference of the previously definite intrinsic value), according to the currency and the market, i.e. supply and total in goods. The price oscillates around the median value of the object.

The exchanges (sales of goods) make it possible to make circulate the capital. The product of the sale makes it possible to repurchase the raw materials, which allow refabriquer the goods. Like the exchange is done with a value higher than its real costs, each cycle make it possible to increase the total Capital. The more there are exchanges, the more the capital increases.

Random links: