An Analysis of Marxs Theory of Value
Marx’s theory of value arose out of the bid to understand the basis on which goods were exchanged. What is it that determines the quantity of a product that is exchanged with another? How is it that a bag of rice can be exchanged with two bales of cloth or why is it that both products share the same monetary value? Marx’s theory was a build-up on the theories of bourgeois classical political economists, notably, Adam Smith, David Ricardo, et al. who laid down the foundation for modern day economic theory economic theory from their investigations of what exactly determined the value of a commodity. For Barbon (1696:2) “things have an intrinsic value and that the greatest number of things have their value from supplying the wants of the mind”. Others like Ricardo and Smith posited that the reward for labour (wage) determined price of value of the commodity. Locke (1777:280), studying the issue of the consequences of lowering interest rates posited that “the natural value of anything consists in its fitness to supply the necessities or serve the convenience of human life”. Also, some thought that this ‘value’ seen in exchange was a result of the importance of products, what is regarded as its usevalue. ‘but that ‘this property of a community is independent of the amount of labour required to appropriate its useful qualities.
