Reason in Revolt: Marxism and Modern Science, By: Alan Woods and Ted Grant
Marxian Economics - The Law Of Value - Surplus Value
According to David L. Prychitko in Fortune, though the Labor Theory of Value is definitely not unique to Marxian thought, it "is a major pillar of traditional Marxian Economics." According to the Labor Theory of Value, "the value of a commodity can be objectively measured by the average amount of labor hours that are required to produce that commodity." If this theory holds, than if good A takes twice as many hours to produce as does good B, than good A will cost twice as much, "regardless of the value of the physical input". According to Prychitko, "Marx argued that the theory is supposed to explain the value of all commodities, including the commodity that workers sell to capitalists for a wage. Marx called this commodity 'labor power'." From this argument he concluded that, because all goods and services tend to be sold at prices that reflect their true value, all profits made by the owners of the means of production are due to the exploitation of workers. Marx did not consider profits due to risk-taking, organization, or putting off current consumption.
Marx believed that capitalism created alienation (Economic and Philosophic Manuscripts of 1844) because control is taken away from the people and given to market forces. Capitalist power results in a lifetime of work that has no sense of meaning or dignity for the worker. Due to the efficiency of specialization, work becomes monotonous and robot-like and the whole of society beings to lose touch with the value of the individual. In short, Marx believed that capitalism must be abolished "and replaced with a fully planned, self-managed economic system that brings a complete and utter end to exploitation and alienation. A socialist revolution, argued Marx, is inevitable."
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