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The labour theory of value, in economics, is the notion that the value of any good or service depends on how much labour it incorporates. The labour theory of value was used as an approximation by English classical economists Adam Smith (1723 - 1790), who suggested it, and , David Ricardo (1772 - 1823), who developed it. The theory was adopted and assumed a central place in the philosophy of , Karl Marx (1818 - 1883) and was used to develop the theory of surplus value, in which the capitalist takes all of the value produced by labour beyond that amount needed for the labourer\'s subsistence. These classical economists spawned a school of neoclassical dissenters the main cause of dissent being the latter\'s disagreement with the labour theory of value. They argued that price was independent of how much labour had gone into producing something, being determined solely by supply and demand. TF |
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