From: "Jurriaan Bendien"

The credit for the interpretation of Marx?s theory of value as an
?objectivist? interpretation is due to Sombart.

In The Economic Theory of the Leisure Class (completed 1914) Bukharin
writes as follows: "Werner Sombart... designates Marx's system as an
outgrowth of "extreme objectivism"; while the Austrian school, in his
opinion, was "the most consistent development in the opposite
direction". We consider this characterisation completely accurate.
(...) Marx's theory is accordingly an objective theory of labour
value..." (p. 36, 37). Bukharin cites Werner Sombart,"Zur Kritik des
oekonomischen Systems von Karl Marx", in Archiv fur soziale
Gesetzgebung und Statistik, vol. VII, 1894, pp. 591,
592.http://www.marxists.org/archive/bukharin/works/1927/leisure-economics/index.htm
I have been meaning to translate Sombart?s article, since it had such
a great influence on the interpretationn of Marx?s theory of value.
Whether there is time for that remains to be seen.

In The German Ideology manuscript, if I remember correctly, Marx and
Engels showed themselves well aware of the subjective utility theory.
That theory already existed long before the marginalist revolution, as
mentioned by Schumpeter:

"But let us bear in mind that it was the 'subjective' or 'utility'
theory of price that had the wind until the influence of the Wealth of
Nations [by Adam Smith] - and especially Ricardo's Principles [of
Political Economy and Taxation] - asserted itself. Even after 1776,
that theory prevailed on the Continent, and there is an unbroken line
of development between Galiani and J.B. Say. Quesnay, Beccaria,
Turgot, Verri, Condillac, and many minor lights contributed to
establishing it more and more firmly. " (History of Economic Analysis,
p. 302). http://ricardo.ecn.wfu.edu/~cottrell/OPE/archive/0703/0097.html

Marx?s theory cannot be simply a theory of objective value, since part
of his aim is precisely to show why value is ?perceived? in a
particular way, and indeed why the phenomena of economic value are
frequently perceived in a way that inverts the real societal
relationship involved.

Use-value is just as ?objective and subjective? as value is. To
produce a product, materials are required, and those materials are
required regardless of whether their price is high or low. That is an
objective reality without which economic (re-)production cannot take
place at all. The normal consumption pattern is likewise an objective
reality, which ultimately must be rooted in a hierarchy of survival
needs. Subjective preferences have objective consequences. But that of
course does not mean that subjective preferences do not exist. They
do. Human valuations are rooted in the evolutionary ability of
sentient organisms to prioritize and weigh up behaviours according to
consciously self-chosen options. ?Choice? is therefore at the core of
?value?. I don?t think Marx denied that idea, it is merely that the
value proportions between products get ?a life of their own?, and
therefore, that a social reality emerges in which people can ?prefer?
all they like, without this alterin!
 g the trading ratios between their products very much at all.

J.


^^^^^^^
CB: Thanks , Juriaan. That's interesting that subjectivist theories
are that old.

 Marx also touches on the objectivity/subjectivity of use-value  in
the second paragraph of _Capital_.  Later he uses the example of a
Bible as a commodity. On the other hand, even "fancy" is socially and
therefore objectively determined , too.

"A commodity is, in the first place, an object outside us, a thing
that by its properties satisfies human wants of some sort or another.
The nature of such wants, whether, for instance, they spring from the
stomach or from fancy, makes no difference."

Could you elaborate what you mean by this ? "Marx?s theory cannot be
simply a theory of objective value, since part of his aim is precisely
to show why value is ?perceived? in a particular way, and indeed why
the phenomena of economic value are frequently perceived in a way that
inverts the real societal relationship involved."
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