The labor theory of value is the underpinnings of Marxist theory. It's basically the proposition that it is only through labor that a commodity has value.
There are all sorts of problems with it. There are things that have man-hours put into them that are valueless (one could think of an example of modern art), or that have intrinsic worth without labor input.
Still, this labor theory of value leads him to have the conclusion that a laborer not paid the TRUE value of his wages. Marx thinks you should be paid not for the value of your present labor, but the uncountable hours of work that went into making you the worker you were prior to that moment. Imagine being paid a wage not for the 25 widgets you produce an hour, but a wage that acknowledges that it took a lot of money and time for you to be an educated human being capable of making 25 widgets and hour.
Again, there are all sorts of problems with this. For starters, not all labor is of equal value. It's not some giant pool. Skilled labor is worth more, and there are bargaining issues between employee and employer.
Marx’s labor-quantity values are intended to serve as tools by which to display the division of total social income into labor income and capital income, that is, to show that you're being exploited by the capitalist class by capitalists not paying you enough.
The labor theory of value is the underpinnings of Marxist theory. It's basically the proposition that it is only through labor that a commodity has value.
There are all sorts of problems with it. There are things that have man-hours put into them that are valueless (one could think of an example of modern art), or that have intrinsic worth without labor input.
Still, this labor theory of value leads him to have the conclusion that a laborer not paid the TRUE value of his wages. Marx thinks you should be paid not for the value of your present labor, but the uncountable hours of work that went into making you the worker you were prior to that moment. Imagine being paid a wage not for the 25 widgets you produce an hour, but a wage that acknowledges that it took a lot of money and time for you to be an educated human being capable of making 25 widgets and hour.
Again, there are all sorts of problems with this. For starters, not all labor is of equal value. It's not some giant pool. Skilled labor is worth more, and there are bargaining issues between employee and employer.
Marx’s labor-quantity values are intended to serve as tools by which to display the division of total social income into labor income and capital income, that is, to show that you're being exploited by the capitalist class by capitalists not paying you enough.
My wage is based partly on how long it took to learn and get good at all this stuff.