Capitalist Arguments Against The Labor Theory of Value Suck (AI Summary) | Notion

📘 Core Idea: What is the Labor Theory of Value (LTV)?

LTV Definition:

The value of a commodity is determined by the average socially necessary labor time required to produce it.

Value ≠ Price
Value is rooted in labor input, not individual desires or market price fluctuations.

🧱 Foundational Concepts

Term	Definition
Commodity	Product made for exchange (sale), not direct use
Use Value	A product's usefulness or ability to satisfy a need
Exchange Value	Its market value when sold (usually expressed as price)
Price	Money expression of exchange value
Value	Socially necessary labor time embodied in a commodity

⚖️ Why LTV Matters

Provides a scientific, quantifiable way of analyzing value.
Explains differences in value across industries based on labor time, not subjective whims.

🚫 Common Criticisms & Rebuttals

1. “What about Mud Pies?”

Claim: If labor creates value, why doesn’t a mud pie (lots of labor) have value?
Response:
- A commodity must be useful (have use value) to have exchange value.
- Mud pies aren't useful — thus no value.

2. “But Value is Subjective!”

Claim: People value things differently, so value is subjective.
Response:
- That's confusing price with value.
- Subjective preferences affect market price, but not intrinsic value.
- LTV uses measurable units (labor hours), unlike subjective theories.