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New Labour Theory of Value

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Peace, Peace, Peace!!!



If you click the 'continue' of every page (left-above), you would find that the whole text of the 'New Labour Theory of Value' (in English & in Chinese) (1--12 Chapter) is in this home page!


We need freedom!

Academic freedom is a part of Human Rights, it means freedom of reading, teaching, researching, logical writing and discussing.

Where does the knowledge come?

Without knowledge, could you produce?

The knowledge comes from human labour! Please, look at the the chapter 2 of the "New Labour Theory of Value" and think it logically!


Do you know that 'value is the basis of economics'?

Without value, there would be no economics at all.

Should man study and understand value before economics?

The 'New Labour Theory of Value' tells you 'what value is' and

'how value is created and produced, etc.'

Is there anybody trying to manipulate the truth? Why???


Could any economist, economics-professor, or Nobel-Prize receiver answer the following simple questions in open?

1) Is value the basis of economics? Why?

2) Could any body produce your subjective value? How?

3) Is knowledge subjective or objective value? Why?

4) Where does knowledge come from? How?

If you have interesting in the answer, please, read all this home page carefully.

Reading without thinking is nonsense; reading without understanding is in vain.

You must read carefully and think logically!

The second chapter of the "New Labour Theory of Value", it has elucidated. You must try to think it logically.


What is Economics?

You will find it in this home page.



Honesty is the best policy!

Be kind and honest to yourself and to the others!

Don't deceive yourself and try to mislead the others on the wrong way!

If you have any good ideas for the human society, please, let the public know it and discuss it.

If it is testified really good, it can be used to serve the human society.

It is nonsense to chat or to write without reading and understanding.

You must try to Think! Think! Logically Think!


Silence is gold or impotence(?).

Do you need V?

the greatest enemy of yourself is laze.


Man said there are many so-called academic mafia misuse internet to hinder

the others getting information from it. They always change or delete the text

of the other's of forum or news. How could we fight against such mafia? Have

you any good ideas?

Without democracy, we have no freedom. There would be no privilege in the

demacratic system. The basis of democracy is the equal political right.





This home page is for for the well-educated and socially-conscious people to discuss questions such as: What is the truth? What are the true needs of human beings? Have you any good ideas for the human society? Please, let it openly to the public!


We need peace, freedom, and justice. We need not war!

We need prosperity and a further developing living standard, so that we can really enjoy our lives!

How can we reach such goals?

According to the results of the NEW LABOUR THEORY OF VALUE we could reach such goals only through mutual aid and tolerance in work which must be based on objective value.


We hope that we are living in a world without war!!!>


Why does Economics base on the objective value and not on the subjective value? Because the objective value has a general objective standard, and the subjective value has not.


What is the objective value?

The objective value of a thing is its "capbility to satisfy human needs".


You are welcome here to discuss about such questions, if you have any other ideas! Please, write it to the public!



Contents of this home page


Part I. "New Labour Theory of Value"

index2.html Chapter I: The Origin of the Mistake in the Labour Theory of Value of Karl Marx. (Part I)

index3.html Chapter I: The Origin of the Mistake in the Labour Theory of Value of Karl Marx. (Part II)

index4.html Chapter II: The Nature of Human Labour.

index5.html Chapter III: The Value of a Product corresponds to the Labour-quantities it contains.

index6.html Chapter IV: The Method of Calculation of the Value of Products.

index7.html Chapter V: Money Capital and Unpaid Value.

index8.html Chapter VI: The Situation of the Direct Worker changes with the Progress Development of Productive Techniques.

index9.html Chapter VII: The Origin of "Unpaid Value".

index10.html Chapter VIII: Short Summary of the Historical Development of Economics and Humanity. (Part A)

index11.html Chapter VIII: Short Summary of the Historical Development of Economics and Humanity. (Part B)

index12.html Chapter IX: The Development Tendency of the Capitalistic Economic System.

index13.html Chapter X: The principle of Distribution in the Ideal Socialist Society.

index14.html Chapter XI: What is Socialism?

index15.html Chapter XII: Concerning the so-called Basic Theory of Modern Economics - the Principle of Diminishing Marginal Utility. (Part I)

index16.html Chapter XII: Concerning the so-called Basic Theory of Modern Economics - the Principle of Diminishing Marginal Utility. (Part II)


Part II:


index17.html What is Knowledge?

index18.html Book Review.

index19.html What is Economics?

index20.html Comment.

index21.html Freedom.

index22.html Democracy.

index23.html Principle of Distribution.

index24.html What is Sciences?

index25.html Questions and Answers.

Part III.

"New Labour Theory of Value" in Chinese.

If you couldn't read it, you must save it on your disk and read it by WORD2000.

index26.html to index37.html

Part IV.

Miscellanries in Chinese

index38.html .......






Journal of Economic Literature:


The Publication of the American Economic Association, March 1992, P. 254-5.


Chao, Tzu-yuan. New Labour Theory of Value: The basic theory of economics and guide to the development of human society. Second and expanded English edition. Hamburg: Jensen.(1971....1985) 1991. Pp. xxiii. 251 Paper. ISBN 3-926987-55-3. JEL,92-0065.


Translated from the German edition, which was translated from the original Chinese version. The author contends that some basic faults exist in Marx's theory of value and analyzes the origin of these faults, pointing out Marx's incorrect grasp of the development of labor productivity and faulty application of terminology. Presents a new labor theory of value and applies it to the calculation of the value of goods. Discusses the historical development of economics and humanity; the development tendency of the capitalistic economic system; the principle of distribution in the ideal socialist society; and the origins and development of socialism. The present edition includes a new chapter on the principle of diminishing marginal utility. Bibliography; index.





New Labour Theory of Value




The "New Labour Theory of Value" is derived from Karl Marx' "Labour theory of Value'.


After the author had discovered some basic faults in Marx' theory, he undertook to try and correct them. Whilst working out his own "New Theory" the author employed the same method as Marx for establishing the basis of the theory. However, he has transformed it into another theory which is in alignmemt with actual history and which reflects the social economic development of man. The form of the "New Theory" remains the same as that of Karl Marx in his theory but its contents become quite different.


In the First Chapter of his paper the author presents an analysis of the origin of the basic faults in Marx' theory, and the influence caused by them. Hereafter the analysis is used to correct the faults. The author further detects the most important fault of Marx' theory as lying in Marx' incorrect grasp of the development of labour productivity, and in his faulty application of terminology. He also shows that Marx was under the influence of the circumstances prevailing at that time which affected the turn his theory took, and that it is owing to this turn that Marx' explanation of social economic development cannot be brought into alignment with actual facts.


Just as human labour has its special characters, so have the results produced through human labour. Human labour is not identical with, cannot be and must not be compared with animal or machine labour. The author, therefore, in Chapter Two of his essay analyses the true character of human labour with scientific methods. This task has never been performed by anyone before and is, therefore, deemed basic and important. It thus represents a special part of this paper which reveals where the foundation of the theory lies.


As a result of the analysis of the character of human labour, the faults of Marx' theory could be revealed and corrected by the "New Labour Theory of Value". In Chapter Three, therefor, of this essay the "New Labour Thory of Value" is introduced, and the methodological approach is shown.


Chapter Four describes the "New Labour Theory of Value" in connection with the calculation of the value of goods. This involves applying the "New Theory" in practice.


Since our economy is an "exchange economy", money cannot but become the instrument of exchange and an important part of capital. Under the system of private property emphasis is laid on benefit. The relations of cash capital and benefit are thus discussed in Chapter Five by the author.


According to the conclusions of the analysis conducted by means of the "New Labour Theory of Value", the labourer or worker need not be the object of exploitation by capitalists. When human society progresses towards a certain level, the workers themselves become quasi-exploiters and an appendage to capitalism.


In Chapter Six the author describes how the workers become adherents of development of productive techniques and are thus able to improve the circumstances and situation in which they live.


As the capitalist is an exploiter and the workers are approaching the position of being exploiters, such questions arise as: "Who are the exploiters and who are the exploited in human society?"; "In what manner does exploitation take place?" etc. These questions are discussed in Chapter Seven.


In Chapter One - Seven the main principles of the paper are presented. In the following Chapter Eight the author gives a concise summary of the history of economic development from which he cites facts as proof that the "New Labour Theory of Value" represents a real economic principle.


In Chapter Nine the author, in accordance with his theory, analyses the form and pattern of the modern economic system, and he infers from this the tendency of human social development.


A theory of value which is at once general and objective has not appeared in human society since it began. The human being has been "blind" for a long time. Now we have discovered a correct and perfect theory of value which is able to explain not only the value of creation and production, but also the methods of development of production. The correctness of this theory is proved by history and the present economic tendency.


In Chapter Ten the principle of value-distribution are stated.


In Chapter Eleven the author tries to answer such questions as: "What is an ideal human siciety?"; "Is such a society desired and required by human society?"; "Is it attainable?"; "Is the socialist society really the ideal human society?"; "What is real socialism?" etc..


In Chapter Twelve the author anslyzed the modern value theory and demonstrated that there is no contradiction between the principle of diminishing marginal utility and the labour theory of value. Each of them has its own character and functions, and both are the absolutely necessary partners in the prozess of decision of "value in exchange", or real prices of goods. They are always interlinked with each other in the theory and practice of economics, etc..


It is hoped that this book will help to bring man on the road which leads to an ideal human society. The theories presented are clossly connected to each other, and in order to obtain a complete understanding the reader will have to study the entire essay.


Hamburg, September 1990

Chao Tzu-yuan


(From: Chao Tzu-yuan, New Labour Theory of Value -- The basic theory of economics and guide to the development of human society, "Second and Expanded Edition", ISBN 3-926987-55-3)