Lecture Notes: Marxist Approach to the Labor Theory of Value

Introduction

• Marxist Theory Focus: Examines labor theory of value and its role in critiquing capitalist society.
• Commodities in Capitalism: Must be purchased to fulfill needs; produced with intention to sell.
• Market Exchange: Mainstream economics sees it as natural; Marx challenges this view.

Commodities

• Definition: Produced for market exchange.
• Use Value: The usefulness of a commodity (e.g., cars for transport).
• Exchange Value: How commodities are exchanged for each other, not the same as market price.

Marx's Analysis

• Underlying Social Relations: Marx looks beyond money to social factors enabling markets.
• Unjust Hierarchy: Workers denied a say in economy; don't retain ownership of produced wealth.

Labor Theory

• Use Value vs. Exchange Value: Commodities have both types of value.
• Labor as Value: Abstracts from use value to see labor as the common factor.

Labor Categories

• Concrete Labor: Specific labor activity to produce a specific result.
  • E.g., making a table or a sandwich.
  • Produces use values; varies by individual and conditions.
• Abstract Labor: General patterns of labor across society.
  • Abstracts from individual differences; measures value in commodities.
  • Socially Necessary Labor Time: Average labor time to produce a commodity.

Value and Exchange

• Labor Produces Value: It’s a common metric for market exchange.
• Living and Dead Labor:
  • Living Labor: Actual worker's labor.
  • Dead Labor: Value in tools and machinery used in production.
• Value Production: Sum of living and dead labor defines commodity value.

Implications for Capitalism

• Capital Equipment: Also a product of labor; only productive when used by workers.
• Exploitation: Capitalist class exploits worker-created value.
• Political Motivation: To show capitalism as exploitative, laying groundwork for Marxist critique.

Future Analysis

• Marx’s Train of Thought: Explores exploitation and disenfranchisement under capitalism.
• Call for Reform: Marx argues capitalism is beyond reform; advocates for its abolition.

Conclusion

• Labor Theory as Backbone: Central to Marxian political economy.
• Exchange and Value: Human labor equates commodities; socially necessary labor time measures exchange capabilities.
• Exploitation: Labor theory of value reveals capitalism’s exploitative nature.