AskProfWolff: What is the Labour Theory of Value?

Every now and then, I need to refresh my memory about what Richard Wolff had to say about the labor theory of value. I have been a little off the mark lately.

Here is another explanation from Richard Wolff.

This makes a nice ending to the trilogy. Wolff’s explanation of the transition from feudalism to capitalism is a bit apocryphal compared to the way Modern Money Theory explains it, so take the point his is trying to make, but the details are somewhat ahistorical. Markets and the division of labor have existed throughout history. They were not invented by capitalists.

I think the USA today is an example of how market pricing misallocates labor in the USA. Too much labor is going into the financialization of our economy instead of productive uses that makes life better for us all. Financialization means making profits from moving money around rather than producing anything that improves people’s lives.

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