Subjective theory of value is stupid

[Abu_Adnan]

How can you objectively value someones labor ? You can't.

Supply and demand has more impact on the value of something than labour.

Also, I forgot to mention. You can quantify labor value using socially necessary labor time as a measurement.

 

[Abu_Adnan]

From my non-economist view point, material cost+labor+overhead = item price. Also, businesses apply what is called dynamic pricing that has little to do with the original value/cost of their product but based on consumer demand - sheer tuuganimo.

If a seller opts to consciously price items to lure in more customers without sacrificing base profit, then that is the Islamic way. I think Europeans use this model of pricing whereas Americans like Jeff Bezos use dynamic pricing and continuously charge customers new prices. Disgusting feature of American business.

The fundamental issue I'm getting at isn't what sets prices, but rather where value is derived from. The scenario I set up is to show that even though prices may go up or down with changes of supply and demand, commodities still have value and that value must come from somewhere, the most common thread in production is labor as without labor there is no production so value must come from labor.

 

[KillStreakIsCool]

The fundamental issue I'm getting at isn't what sets prices, but rather where value is derived from. The scenario I set up is to show that even though prices may go up or down with changes of supply and demand, commodities still have value and that value must come from somewhere, the most common thread in production is labor as without labor there is no production so value must come from labor.

Without labor there will be no product so one can argue that is where the value of an item comes from. With that said, and as an example, for a company to manufacture memory chips and CPU's which go into electronics that drive all man-made moving stuff on earth, they have to acquire certain precious metals from earth, metals like Gold, Palladium, Silver and Platinum. Another individual can then argue if these metals aren't available, then there is no product to be made for electronics. Labor wouldn't be in the picture if these starting materials aren't available. The base price of the products will then be decided by the value of these precious metals to begin with etc.

I am just pointing out all arguments are legitimate for price setting, some more important than others of course and there is no one single factor but many.

 

[Abu_Adnan]

Without labor there will be no product so one can argue that is where the value of an item comes from. With that said, and as an example, for a company to manufacture memory chips and CPU's which go into electronics that drive all man-made moving stuff on earth, they have to acquire certain precious metals from earth, metals like Gold, Palladium, Silver and Platinum. Another individual can then argue if these metals aren't available, then there is no product to be made for electronics. Labor wouldn't be in the picture if these starting materials aren't available.

I am just pointing out all arguments are legitimate for price setting, some more important than ithers of course.

The problem with that argument is that in order to get the materials to make a memory chip labor is required, you can't mine gold without miners. Furthermore, if materials aren't available then production ceases being viable making any labor useless.

 

[KillStreakIsCool]

I must have done well in commenting on ECON-101 issues for a consumer. Economy isn't my area of expertise btw, stating some obvious facts I picked up from being over-charged by Best-Buy LOL.

 

[KillStreakIsCool]

The problem with that argument is that in order to get the materials to make a memory chip labor is required, you can't mine gold without miners. Furthermore, if materials aren't available then production ceases being viable making any labor useless.

You will always need human beings to do anything, suckers, so simply put, no human around nothing goes. Allah thus made mankind in charge of Earth. They are the first priority in the scale of things. Human talent, human labor etc. I am also pro-labor and vote accordingly although all parties here pay lip service to average worker conditions.

 

[Abu_Adnan]

Hello. A universal expert in subjective utility and time preference theorem.

Mengerian And Misesian Austrian school marginal subjective utility expert.

you have a lot of confusions. You need to unpack your questions. Your all over the place.

pick one point and stick to it. You asked a question and then provided an answer then asked a question again

do you wish to know where value is derived? For the seller or buyer in a low volume product ? Or are you asking what determines the price in a low volume low demand scenario ?

unpack your questions please. Too many fallacies as well in your questions.

Thanks.

The question I am asking is not about prices, rather its about value. I admit that I'm no expert so I probably came across as jumbled. Basically, I'm using this scenario to show that even if prices fluctuate with supply and demand, any given commodity will still have some value and that value is derived from labor. I like to use this argument to eventually show how profit must come from surplus labor value and that workers cannot be properly compensated under the capitalist mode of production as they will never be given their full labor value.

 

[KillStreakIsCool]

The question I am asking is not about prices, rather its about value. I admit that I'm no expert so I probably came across as jumbled. Basically, I'm using this scenario to show that even if prices fluctuate with supply and demand, any given commodity will still have some value and that value is derived from labor. I like to use this argument to eventually show how profit must come from surplus labor value and that workers cannot be properly compensated under the capitalist mode of production as they will never be given their full labor value.

That is why you need minimum wage and defined income level for people who work so they can meet expectations. Companies should be required to pay decent. It is why labor movements were born out of necessity.

 

[Abu_Adnan]

That is why you need minimum wage and defined income level for people who work so they can meet expectations. Companies should be required to pay decent. It is why labor movements were born out of necessity.

Agreed, companies should pay their workers a living wage, I mean across a lot of the world average workers' wages have been stagnant, in some countries since the 70s. All the while the salaries and net worth of the wealthy has been going up and up and up. I really wonder how much of a beating average people will take until they've had enough.