Woah, I just read Value, Price, and Profit. I got this one.
In case anyone still gets caught up on the old argument made against the raising of wages or the one more commonly made argument against having a minimum wage: Marx demonstrated that the value of a commodity is determined by labor time, not wages. Instead of raising prices, increases in wages simply cut into the capitalist’s profits. The money that is paid to the worker in the form of a wage and the profits claimed by the capitalist are both derived from the value created by the worker’s labor. So, when one increases, the other must decrease proportionally.
People would be right to doubt this framing without experimental evidence of prices best correlating with labor time. However, Paul Cockshott has thankfully done the work for us and demonstrated empirically that there’s no solid foundation to the law of supply and demand explaining prices except for fast fluctuations, and the baseline of prices being determined by labour theory of value.
Woah, I just read Value, Price, and Profit. I got this one.
In case anyone still gets caught up on the old argument made against the raising of wages or the one more commonly made argument against having a minimum wage: Marx demonstrated that the value of a commodity is determined by labor time, not wages. Instead of raising prices, increases in wages simply cut into the capitalist’s profits. The money that is paid to the worker in the form of a wage and the profits claimed by the capitalist are both derived from the value created by the worker’s labor. So, when one increases, the other must decrease proportionally.
Value, Price and Profit - Marx
People would be right to doubt this framing without experimental evidence of prices best correlating with labor time. However, Paul Cockshott has thankfully done the work for us and demonstrated empirically that there’s no solid foundation to the law of supply and demand explaining prices except for fast fluctuations, and the baseline of prices being determined by labour theory of value.
Seriously, watch Cockshott’s videos on the topic
Link?
https://www.youtube.com/watch?v=emnYMfjYh1Q
I found a YouTube link in your comment. Here are links to the same video on alternative frontends that protect your privacy: