JustMovement
10th April 2011, 19:22
So I have been reading about the theory of value, and I watched brendanmcooney s videos on the subject which I found really useful , but there are some things I didn t get.
So (from what I understood) Marx said that what determined the rate at which commodities are traded for other commodities, or to simplify, the price of commodities, is determined by labor, which is what gives them value. But what I do not understand is why do you need this concept of value. Isn t it enough to say that the price of commodities is set by supply and demand? Does value explain shifts in supply, so that as the capitalist chases supraprofits, mechanisation increases, labor becomes more efficient and prices can be lowered? In which case the value of the commodity represents continual chase for more efficient production.
But why this emphasis on labor? It seems to me that supraprofits can also come from advertisement, brand loyalty, lack of alternatives, etc. I get that price does not come from just saying, well this orange is worth 2$ to me, which I could alternatively use to buy 3 toothbrushes, half a melon, etc. Price is not our subjective valuation of what a commodity is worth to us, it is determined by how efficiently (for example) people can pick oranges, but is it not also how much people (on average) feel like spending on it?
I have always found this concept of value elusive, but I guess my question boils down to, how does supply and demand fit in with Marx s concept of value?
So (from what I understood) Marx said that what determined the rate at which commodities are traded for other commodities, or to simplify, the price of commodities, is determined by labor, which is what gives them value. But what I do not understand is why do you need this concept of value. Isn t it enough to say that the price of commodities is set by supply and demand? Does value explain shifts in supply, so that as the capitalist chases supraprofits, mechanisation increases, labor becomes more efficient and prices can be lowered? In which case the value of the commodity represents continual chase for more efficient production.
But why this emphasis on labor? It seems to me that supraprofits can also come from advertisement, brand loyalty, lack of alternatives, etc. I get that price does not come from just saying, well this orange is worth 2$ to me, which I could alternatively use to buy 3 toothbrushes, half a melon, etc. Price is not our subjective valuation of what a commodity is worth to us, it is determined by how efficiently (for example) people can pick oranges, but is it not also how much people (on average) feel like spending on it?
I have always found this concept of value elusive, but I guess my question boils down to, how does supply and demand fit in with Marx s concept of value?