Notably, one of the renowned sociology theorists is Marx who introduced the labor theory of value which diminishes capitalism. The reason for choosing this discipline and theorist is that it develops a critical understanding regarding the authenticity of the different reasonable prices and the way products should be valued in the consumer market. Holistically, choosing the sociology discipline is vital because it helps people to comprehend the nature of human society and its interaction. Moreover, analyzing the sociology discipline is important since it explains different problems affecting people in society. Arguably, individuals can develop excellent critical thinking skills since they understand distinct occurrences around them through sociology (Swedberg, 2018). Therefore, evaluating Marx’s labor theory of value develops a comprehension among the public regarding the value of different commodities and respective employee wages, as per the time spent in making the product or service.
Historically, Marx is presented as one of the highly controversial personalities in the Western world. Marx developed criticism of capitalism in Germany, rousing a harmonious and inevitable socialist future inspired by a global proportion revolution. According to Fuchs (2017), the Marxist dream was created during the twentieth century due to communism in Germany and other countries throughout Europe. In the nineteenth century, capitalism was widespread, for example, products were sold irrationally, and employees received minimal income returns (Fuchs, 2017). Marx established the value labor theory to present the analogy that the price of different goods needs to be equivalent to the total time spent in terms of hours and the corresponding workers’ pay. The theory aimed at creating an understanding which can ensure an equal salary for equal work done. In other words, the time an individual spends on making a specific product should be equivalent to the amount of profit. Connectedly, Karl Marx developed the labor theory of value, intending to counter low wages and exploitative product prices during the 19th century when capitalism was embraced in society.
Additionally, Karl Marx’s labor theory of value has its currency in the contemporary world. The theory champions the wage pay equal to the time spent in making the market product. For instance, people who work for more hours in the U.S. are in a position of earning more income than those who work for a few hours a day. The amount of time spent doing different activities in the workplace dictates the amount of money that an employee can earn.
However, to a certain extent, the labor theory of value is not applied in the contemporary world. According to Marx, a product’s value should be rational to the actual time spent making it (Mihályi & Szelényi, 2019). Gehrke and Kurz (2006) argue that value is subjective to other components, including marginal utility and raw materials used in manufacturing a product and not the time spent on producing the merchandise only. Thus, we cannot determine the price of a product in the consumer market based on the time spent making it only.
Besides, the labor theory of value exemplifies what I have experienced and observed. As mentioned above, casual employees earn according to the amount of time they spend working. My friend, who works as a customer care desk attendant for an electronics retail shop, earns equivalent to the total amount of time that he spends working. The hours when he is at the customer care desk matter to the wages which he receives at the end of the day. Connectedly, it is worth noting that Karl Marx’s labor theory of value is practical in society today.
References
Fuchs, C. (2017). The information economy and the labor theory of value. International Journal of Political Economy, 46(1), 65–89.
Gehrke, C., & Kurz, H. D. (2006). Sraffa on von Bortkiewicz: Reconstructing the classical theory of value and distribution. History of Political Economy, 38(1), 91–149.
Mihályi, P., & Szelényi, I. (2019). Rent-seekers, profits, wages, and inequality. Palgrave Pivot.
Swedberg, R. (2018). Max Weber and the idea of economic sociology. Princeton University Press.