Marx’s Labor Theory of Value. Misleading or Truth?

Abstract

As once noted by Hicks, an economist’s suggestions and recommendations depend on his or her social values and ideological beliefs. But this is not how it should be. Economic science should be the same for liberals, socialists, nationalists, Christians and pagans. I believe that a person’s economic viewpoints and ideological beliefs are, to a large extent, defined by their attitude towards profit. Marxists believe that profit is the unpaid labour of an employee. For liberals profit is the rightful reward of such a specific factor of production as “entrepreneurial talent” and serves as compensation for efficient use of resources. Followers of Keynes and others in favour of state regulation assume an intermediate or middle position between Marxists and liberals. They believe that profit does not always end up in the most deserving hands and so under certain circumstances government officials may restrict the freedom of entrepreneurs and in doing so promote a more equitable distribution of profit. The opinions of economists and their recommendations will continue to differ until there is a definite answer to the question – What is profit? This essay is an attempt to answer this question and I hope that it will help to iron out contradictions between the supporters of different ideologies and political beliefs.