alt Hacker News> Suppose you become politically radicalized and become a Marxist. You get convinced that the labor theory of value is correct.
> The number of people in the general population who will know enough about the history and philosophy of economics to give you a clear account of why Marxism and the labor theory of value is incorrect,
He's correct most people don't know about labor theory of value. Which is why it's easy for him to categorize those who believe it as "radicalized" and "Marxist" versus the minority of calm, rational, objective people who can discount it.
Marx did follow the labor theory of value - as did virtually every major economist (or as they put it probably better back then, student of political economy) before Marx, who also believed it. Marx credits another revolutionary for discovering the labor theory of value - Benjamin Franklin. There were a few proto-papers on subjective theory of value, but an alternative theory of value did not even really exist before Capital was published.
Labor theory of value was the theory of Benjamin Franklin, John Locke, Adam Smith, David Ricardo, and all the major economists before Marx. And Marx accepted what they accepted.
Alternative theories of value were not really fleshed out until after Marx published Capital.
So consider all of this when he categorizes the idea of the labor theory of value as extremist, radical, Marxist etc.
According to this article, believing that a carpenter banging wood and nails into a table creates value is an extremist belief. Even though pretty much every major economist before Marx believed the same thing.
Ps. This was told to you by myself - from one the 1% of people who know this stuff
Pps. If you didn't read the article, you would not know I am referring to myself as part of an elite 1% of knowledge sarcastically
Replies
Yes, I was considering making the same point, but in fairness to him, the vast majority of the millenial marxists and beyond don't know this either, nor that marxism doesn't mean "no profits or reinvestment or insurances, all value goes to workers".
I am with the author on how people get radicalized, but he could not have picked a worse example that Marxism as an example of extremist idea.
Equating Marxism to labor theory of value is akin to maybe equating economics to a supply/demand curve.
There are unequivocally true parts of Marxism, such as surplus value of labor, and the fundamental incentive conflict between a capital owner and laborer (which Marx deems exploitation)
The labor theory of value is also I think misinterpreted by modern economists as a price-setting mechanism, which it isn't. It's a mechanism to show that there is a certain floor on value of an economic good, which is raised every time constructive labor is applied to a product.
The important issue to focus on isn't that long ago people had a model that was not a good model of reality. The issue is that now we have better models and the person who claims they have an educated opinion should know it. Blindly holding to a model that has been shown to be inferior is what makes it an extremist belief.
The geocentric model was thought to be true for literally thousands of years by every astronomer and scientist. Today if someone claimed the geocentric model was true, we would consider it an extremist belief - even though pretty much every major astronomer believed it for thousands of years.