On Labor Theory Of Value

Labor theory of value is the corner stone of Marxism economics, the theoretical foundation on which guiding thoughts of our country and party is based, and therefore possesses great theoretical and realistic significance. For a long time, Labor theory of value is a hot topic of argument in the economics world. Up to now since 1960s, altogether four concentrated national discussions have appeared. Marxism labor theory of value is facing the challenges from theoretical critics and social practice, and is in an urgent need to be further developed. This article insists on the Unitarian hypothesis about the value of labor, discusses the modern form of the labor theory of value, and aims to solve those longtime undecided problems. In order to reach the goal, we use the methodology of scientific abstract, re-abstract the essential prescription of labor; take the developing concept of labor as base, synthetically use multiple methods of logic analysis, dialectic analysis, combination of qualitative and quantitative analysis and others, and have outlined the modern form of labor theory of value; adopt positive research through analysis and demonstration on important long-time undecided problems concerned labor theory of value and examine the correctness and effectiveness of the newly constructed theory.This research has reached the following results and conclusions:1. Rebuilt Marxism theory of labor. When we put the cognizance on the human activities of labor deeply into a micro-course, we achieved two important theoretical findings. First, knowledge is an independent factor which forms human activities of labor. It is put forward that labor is composed of three factors of human intelligence, physical power, and the knowledge stored in the brain. The three factors build up the production capability of laborers. Labor is the use of production capability of laborers. Second, knowledge labor has a special trans- spatiotemporal property, which allows it to travel over time and space, combine with multiple laborers in direct producing courses, and to form combined labor. It is shown that the essence of the individual labor of laborers is a kind of combined or coordinated labor. This new recognition of connotation of labor broke through the definition of Marx who believed that labor is the consumption intelligence and physical power, developed the Marxism theory of labor and offered a foundation for constructing a modern labor theory of value.2. Rebuilt Marxism theory of value sources. The value and use-value of knowledge and material means of production take on completely different properties. The use-value of knowledge lies in that it is combined with human brain intelligence to form intellectual labor. the value of knowledge is embodied by its contribution ratio in the intellectual labor. Knowledge has a continuing Reproductive Capacity. Labor, according to its spatial and temporal characteristic, can be divided into living labor, materialized labor and reproducible materialized labor, which is knowledge. This category broke through the Marx's theory which divided labor only into living labor and materialized labor. It is put forward in this article that living labor is the only source of value, but the value living labor creates includes two parts: one is the value that living labor itself creates and the other is the value that the knowledgecreates which is merged into the living labor. 3. Artificial intelligence has a function of combining knowledge to produce new knowledge. It is proved that artificial intelligence creates value, but the nature of the value it creates is the value created altogether by living labor and knowledge laborers who are outside the direct producing courses. This conclusion explains the source of profits made by highly automatic enterprises.4. As far as the labor theory of value is concerned, productive labor is the labor which creates value. To judge whether a labor is productive labor, we must test whether it is the labor which is realized in goods, and whether it creates the value of goods. Any productive labor must contain the labor of knowledge laborers. Labor offered by knowledge production and service sectors is always belonging to productive labor, and moreover the most important productive labor. This conclusion settled the long time argument over whether scientific research sector and educational sector is belonging to productive labor.5. Rebuilt Marxism theory of magnitude of value. Magnitude of value is total consumption of intellectual and physical power of laborers plus the knowledge amount. Based on this the author developed duality theory of magnitude of value. From the angle of producers, the magnitude of value is the relation of the production cost to utility. From the angle of consumers, the magnitude of value is utility value of goods. It is deduced from the dualistic nature of the magnitude of value that surplus value is the value of knowledge. The entity of value is decided by labor, but the exchange value is decided by supply and demand, and the equilibrium price is exchange value.6. Knowledge, as the source of value, is the source of use-value. The dual properties of knowledge mean that value contains the implication of use-value and that use-value contains the implication of value. Unification of the two is realized through exchange value. Therefore, the relationship of unity of oppositeness has been discovered between three categories of value, use-value and exchange value. Value must be tested according to the relationship between wants and satisfaction of wants of subject and object. The method makes the concept of value a coherent one, which has been widely used in the economics, philosophy, sociology, psychology, and in people's lives.7. Part of value produced by living labor is the contribution of the knowledge used in the labor process. This part of value is not new value created by living labor itself, and therefore should be allocated among the whole society. The nation can take out a part of it and make distribution according to contribution ratio of production factors, which is the theoretical ground to adopt the distribution system in our country, which combine distribution according to one's performance and production factors.The emphasis of this article is put on the research over the labor theory, the theory of value source and the theory of magnitude of value in the Marxism theory of value. It didn't elaborate the relationship between the theory of value and the theory of distribution in a more wide and deep dimensions, which is the limit and deficiency of this research, and therefore, is the reason that further study and efforts are required over this issue.