Message:

<p>[QUOTE=&quot;Cloudsweeper99, post: 786774, member: 3011&quot;]In short, the labor theory of value was one of the basic tenants of Marxism.&nbsp; They believed like you in the &quot;common sense&quot; notion that only the amount of labor that went into the production of anything determined the value.&nbsp; They didn&#039;t believe that supply and demand set the price, or that the amount of capital or cost of capital should impact the price.&nbsp; So if there was $200 of labor involved in producing something, then $200 would be the price -- even if nobody wanted it or even if people would be willing to pay much more for it.&nbsp; Naturally, the result was shortages in some goods and a glut of other items that nobody wanted.&nbsp; But without a working price mechanism, they had no way to know this.&nbsp; So despite all of their &quot;common sense,&quot; the Marxists were wrong.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in