- 24 May 2012 14:50
#13968675
I feel like you just described the free rider problem.
Why would workers work harder than average labor time when they're going to be compensated the same regardless?
Vera Politica wrote:Socially-necessary labor-time is the average labor-time in a given economic context to produce a given commodity. If the socially-necessary labor-time to produce a hat is, say, 0.3 hours, you will not add value to your product by producing hats at 0.7 hours a piece. One, however, will extract tremendous gains if they can produce the hats at 0.2 units. Industries that can produce hats at 0.2 units will eventually out-compete those industries producing at 0.3 or 0.4, shifting the average down to 0.2 and reducing the value of the commodity (this explains why mass, intensive production reduces the value of certain products).
There are problems with the labor-theory of value, no doubt, but I think you are confused about the very basics of Marxian economics.
Note also that the price of a product does not necessarily reflect its value (i.e. the socially-necessary labor-time 'contained' in the price). The price is determined the old-fashioned way: supply and demand.
I feel like you just described the free rider problem.
Why would workers work harder than average labor time when they're going to be compensated the same regardless?
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Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream.