Death to Labor Theory of Prices, err....Value

Death to Labor Theory of Prices, err....Value

Marx and the Labor Theory of Value

Death to Karl Marx. Well, just couldn't happen anymore. Mr. Marx has been dead for so long. But the socialism doctrines he espoused are well and alive today. One thing in particular is the Labor Theory of Value (LTV).

Labor Theory of Value, as opposed to Subjective Theory of Value, tells that the value of any commodity depends only on the amount of effort or labor employed in the production or preparation of the commodity. Of course, the amount and cost of raw materials and machinery is accounted as necessary contributor to the value of the commodity produced. This doesn't contradict Marx theory at all since the raw materials and the machinery must have undergone through some prior labor, the same nature of labor he was talking in the theory itself. In this sense, the labor done is to be taken as the sole contributor to the value of the commodity produced. At least this how Marx tried to explain it. 

An apple drops from its tree. According to LTV, the apple only starts to accumulate value the moment an apple-picker walks to it and picks it up. Picking up an apple contains an effort or labor thus adding a value to it. Based on LTV, same thing is true for all commodities produced.

Which brings me to the question: If the value of commodity only depends on the labor that produced or prepared it, where does labor gets its value from? Marx also answered it. Labor must be treated like any other commodity produced. Meaning, labor did not exists on its own. It has undergone some accumulation of value like the effort to learn, practice and its maintenance. Marx called it the value of labor. So, the value of a commodity depends on the value of the labor, a labor which was also dependent on past efforts to acquire it. In Marx's term, the value of labor is to be appropriately called the value of laboring power. "The value of labouring power is determined by the value of the necessaries required to produce, develop, maintain, and perpetuate the labouring power" was the exact word of Marx.

I want to re-state Labor Theory of Value in this way: The value of commodity depends on the value of the labor or the value of the laboring power, a value which is necessarily dependent to the past value of efforts to come-up with such laboring skill.

Aha! There it goes. Something is amiss with LTV, isn't it? I think that is the big problem for LTV. If we keep digging further, with the goal to locate the root from where all value of goods could originate, it will take us to the forever beginning of all things Perhaps as primitive as the time when the snake labored his way to the garden and enticed Eve to eat the forbidden fruit. Or maybe infinitely earlier than anything.

My Child Answers the Difference Between Value and Price

My Child Answers the Difference Between Value and Price

The original feeling I had was that any attempt to explain the distinction between the concepts of Value and Price to any people is a wasteful thing to do, no more than just a regurgitation of what's already obvious, isn't it? Come on. People must not be that utterly ridiculous to ever ask what's the difference between Value and Price. But, I somehow convinced myself that I was wrong on my original impression. Some people, and disgustingly not so few, specially in a land of so much socialists who still idolize Karl Marx and his Labor Theory of Price Value, think Value and Price are just the same.

They are not. So what's the difference? Ask a child.

My 3-year old daughter, as all other children,  don't know anything about prices. But my little girl must have caused  a slight headache to her mom when she's on tantrum when her mom refused to buy her favorite doll. She really like to have the doll no matter what. My question is: What's in the doll that made my daughter cry for it? Certainly, there is something. And also, what's in the doll that made my wife refused to buy it? Certainly, there is something too. What are they?

Definition of Value and Price

Price is the sum of money a sum offered for the capture of a criminal dead or alive. Well, I mean to joke. That is true but it is not the kind of definition to use in front of a hard-core, often irrational socialist. We need a definition in economic context.

So, lawmakers want to amend FCDA? Plunderer's answer: Hey stupid, We Find Ways!

So, lawmakers want to amend FCDA? Plunderer's answer: Hey stupid, We Find Ways!

Here we go again. Politicians and mainstream think tanks are batting to pass amendment of RA 6426 or the Foreign Currency Deposit Act. Technically they want to kill it.

The lawmakers and their avid supporters blame FCDA for the headache the prosecution gets on its failure to open Corona's dollar account for scrutiny. The culprit they say is that FCDA provides absolute confidential nature to any foreign currency account against any disclosure not approved by the account holder. Thus they feel incapacitated on their campaign against government corruptions.

These "thinking" people contend that once they revoke FCDA, they are one step closer at solving government corruption. By some common sense, they foresee that the current Corona dilemma could be avoided. Corruption could then be solved. Hurraaah! Excellent idea? No. Not even close. It doesn't show  anything logical.

What does Golden Rule exists for?

What does Golden Rule exists for?

Who needs the Golden Rule? Certainly not everyone. The Buddha or the enlightened one doesn't need one. Golden Rule is only for those in need of a sticky reminder specially at times of almost intolerable situation, wherein one needs to remind own self to try really hard not to cause ruin to others, both in action and intention, except in self-defense. Willful act of injuring other men or retaliation  is a big no if Golden Rule is to be followed devotedly.

The Buddha no longer needs Golden Rule for himself obviously. There is a simple reason for that.  He already realized  the spontaneity of everything including Golden Rule. Having fully understood the truth of his Being, the Buddha is already free from the struggle of making an effort to abide by the Golden Rule. Interestingly, the Buddha is already the embodiment of the Golden Rule. For him, everything flows not by effort or willful exertion or vigilant self-restraint but everything including love, compassion and respect goes on and on so naturally like a breath. 

God clarifies his position about Religion at last! God called me on my phone.

God clarifies his position about Religion at last! God called me on my phone.

I had a brief phone call from heaven. God wants to issue his official statement to clarify his position about religion once and for all. Here is a MonkeySocietyblog exclusive:

I, the Almighty God, have no bitter feelings against religion. I want emphasis on that this early. I want religion to exist as long as possible. And I have reasons why:

First, though religion comes in varieties, it was really successful at UNIFYING the  people. The proof is that everyone is now unified in one mindset of genuinely screwing one another.

Each kind of religion claims the true God is in them. Then they  kill  each other over the idea. Killing became a holy passion in my name. Religion taught them so. And in cases wherein a man violated someone for personal reasons, his church taught him to just ask for forgiveness afterwards and everything will be just fine. Forgiveness of course comes in unlimited supply.

About MonkeySociety (surviving in a society ruled by monkeys)

About MonkeySociety (surviving in a society ruled by monkeys)

MonkeySocietyblog is an attempt to spread the message of individual liberty using the kind of spirituality the Buddha had taught people in ages.

MonkeySociety is a metaphor for a backward-thinking society. The term "backward thinking society" is a vague idea. There is no clear calibration from where the "backward" thing can be seen to begin. But there is an unwritten rule for it I think. A rule that can't be well described and expected not to be agreed upon by all men. It means only one thing and that is it uniquely depends on the person making such evaluation. In my case, it is I who holds the idea how backward my society is. In my viewpoint shall reside the basis of judgment when to call my society a backward society or in this blog's theme, a MonkeySociety.

Am I Nuts? I have no plans sending my kids to college.

Am I Nuts? I have no plans sending my kids to college.

College degree will not make everyone rich. This is not false for me. Not few got rich even without a college degree. Not few, too, got their college degrees yet ended-up not getting richer. I am not inclined to say which one I belong. Either of the two is a reality I see everyday.

Though I am as nuts as anyone would think, I am not embarking on a serious plan for my kids on their not-so-distant college days. While others consider going to college as a grand Plan A (or to many the only plan they have), I decided why not go to my grand Plan B instead?