You have to deal with Marx and Marxists in every nook and cranny of the ivory tower, of course, but when you teach anything in modern history you have to confront him head on. Since Marx was a shit-flinging nihilist pretending to be a philosopher while masquerading as an economist, economics is the easiest entry point to his thought. So I’d go at him head-on.
The Labor Theory of Value makes intuitive sense, especially to college kids, who consider themselves both idealists and socially sophisticated. So, I’d tell them, we all agree: Nike’s sneakers cost $2 to make, but sell for $200; therefore, the other $198 must be capitalist exploitation, right? In a socially-just world, sneakers would never cost more than $2, since that’s the amount of “socially useful” labor that went into making them.
To really get them thinking, at that point I’d offer to trade them my shoes, which were of course the butt-ugliest things I could find, bought special at the local Salvation Army just for that purpose. “These cost $2,” I’d tell them. “They’re my social justice shoes. Who’s willing to trade? Oh, nobody? Why ever not?” Or I’d come to class in a plain Wal-Mart t-shirt, on which I’d written “I Heart [This University]” in Magic Marker. Same deal, I’d tell them. “The stuff you guys are wearing sends the same message, but I’ve been in the bookstore, I know for a fact that the hoodie you’re wearing [pointing to the most dolled-up Basic Becky I could find] costs $75. My shirt only cost $2. We’re both telling the world that we love [this university], but yours cost a whole lot more. You, Becky, are taking like $73 out of the mouths of poor people by wearing that … right?”
Repeat as often as needed, until they get the idea that “price” isn’t the same thing as “cost”. This isn’t physics class, I’d tell them, where we can assume away important real-world stuff like friction. Out here in the real world, we have to take stuff like “overhead” and “taxes” into account, such that even if those ugly sneakers or that crappy college-logo t-shirt only “cost” $2 at the point of manufacture, getting them onto the shelves at the the store here in College Town adds a whole bunch more. And then there’s demand, which we’ve already covered. I offered to trade y’all my shoes. Hell, I offered to give away my homemade t-shirt, and nobody took me up on it. You might change your tune if you were naked – and here we will note that this was the kind of situation Karl Marx was putatively addressing – but if you have any choice at all you’ll stick with what you have, because nobody in his right mind wants to wander around campus in a homemade t-shirt …
In short, I’d tell them, price is information. Done right – in an absolutely free market, the capital-L Libertarian paradise, which is of course as bong-addled a fantasy as Marx’s – price is perfect information. Nike’s sneakers don’t sell for $200 because that’s what it cost to make them. The $200 is the aggregate of all those costs we talked about before – cost of materials, labor, transportation, taxes, and, as we’ve seen by the fact that y’all still won’t trade me shoes, the most important piece of information, demand.
Severian, “Velocity of Information (I)”, Founding Questions, 2020-12-26.
November 18, 2023
QotD: Teaching Marx’s Labour Theory of Value in university
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