The "law of value" is a concept extensively used in Marxist economics to explain the principles underlying the exchange of commodities within a capitalist society. It refers to the theory that the value of a commodity is determined by the socially necessary labor time required for its production.
According to this law, commodities possess two distinct types of value: use-value and exchange-value. Use-value refers to the usefulness or utility of a commodity, while exchange-value represents the proportion at which commodities can be exchanged with one another. The exchange-value is determined by the amount of socially necessary labor time embodied in a commodity.
The law of value asserts that in a capitalist economy, commodities acquire their exchange-value through the expenditure of human labor power, which bears a direct relationship to the average socially necessary labor time expended. This socially necessary labor time refers to the average labor time required by a particular society, utilizing the prevailing level of productivity and specific technological conditions.
Furthermore, the law of value underlines the tendency of commodities and their values to be subject to fluctuations due to changes in productivity levels, technological advancements, and alterations in the social division of labor. Additionally, it recognizes the disparities in the distribution and appropriation of surplus value within the capitalist system.
In summary, the law of value in Marxist economics elucidates the relationship between the value of commodities and the labor time required for their production, emphasizing the social dimensions of exchange-value in a capitalist society and the influence of productivity dynamics on market conditions.
