What is the work of working with value?

The theory of working with value is an economic theory that states that the value of the product is entirely dependent on the amount of work embedded in this product. This theory was first placed by the Greek philosopher Aristotle and later was the central principle of economic theory of Karel Marx, a German philosopher whose opinions inspired by socialism and communism. According to the work theory, the work given in the creation of the product determines its value and, according to Marx, any profits from the product should return to workers. This theory has fallen out of kindness in modern times, as it claims that detective stories claim that a naive view of economic and social reality.

to propose how to improve existing economies, economists have long studied the basics of how products are produced and sold. Some believe that the product has a certain internal value that remains unchanged. Others feel that the company's residents determine the value of the Creating product on the market with the purchase and sale. The theory of work value is of the opinion that quantityYour work and time required by this work to create an item determines its final value.

For example, one product may require four workers to complete it for four hours. According to the theory of the theory, this product would have more value than a product that a single person working for only one hour could produce. Aristotle made these statements first and his work was later picked up by other classical economists.

Marx used the Labor theory of value as the basis for his complaints against capitalism. He felt that any profits from production should return to workers because it was their efforts that produce their value. For example, a product that required $ 100 USD in the factory production and later sold for $ 500400 excess value, as Marx called it. This excess value belongs to workers in the Marx's opinion, but in fact it usually goesOwners of the factory who hired workers.

Those people who deny the validity of the Labor Value Theory point to what they perceive as shortcomings in terms of its realistic economic applications. These critics say that if all profits go to workers, there would be no investors' motivation to put capital into new products. In addition, they argue that the theory omits the fact that some products, such as diamonds, are much more worthwhile for consumers that other products that take much more time and effort to produce.