Economic Criticism

[Dechristianize]

As you may have guessed by my post count, I'm rather new to both these forums and the Communist ideology. I was wondering how you all would respond to this economic criticism found on Wikipedia

The Austrian School of economics charges Marx's economic system with being based on the classical labour theory of value. It argues this fundamental theory of classical economics is false, and prefers the subsequent and modern theory of value the subjective theory of value put forward by Carl Menger in his book Principles of Economics. The shift from labor being the source of all value to subjective individual evaluations 'creating' all value undermines Marx's economic conclusions and some of his social theories.

[Zanthorus]

Simply put the Austrians confuse use-value and exchange-value. The subjectivist theories of "value" are not actually theoriest of value in the Marxian sense, they are theories of use-value. Menger's theory of value is in no way in competition with the Marxist theory of value.

The use-value of a product is the property of the product that allows it to satisfy social wants. The exchange-value of a product is how many of any particular object on the market which you can get in exchange for it. Usually this is expressed in money which is the universal measure of value. Now the exchange-value of an object changes a lot. Something can cost different amounts at different times. Crucially the price of an object will oscillate around a specific point - the point where supply equals demand. Marx's theory of value attempts to explain why if demand equals supply for a specific product it exchanges relative to other products on the market in the way that it does.

Subjectivist economics merely says that people buy things according to their individual preferences mediated by the "law" of diminishing marginal utility. It doesn't explain what Marx wants to explain.

[28350]

Simpy put

:crying:

[Zanthorus]

I'm not getting exactly what the above post is trying to say :confused:

[Broletariat]

I'm not getting exactly what the above post is trying to say :confused:
Maybe he thinks that wasn't so simple? idk

[Dechristianize]

Maybe he thinks that wasn't so simple? idk
It was a clear and concise explanation by my eyes. Thank you, Zanthorus. :)