<p>I’ve been doing a lot of reading in my spare time, and I’m just not understanding why Marx’s Labor Theory of Value gets such a bad rap. The book I’m reading, “The Big Three in Economics”, denounces it because it ignores demand. I get that demand for a product increases the amount people will pay for it. I don’t get how it makes the product intrinsically worth more.</p>
<p>The example the book uses is diamonds and copper. Diamonds sell for a lot more than copper despite the fact that they require a similar amount of labor to produce. Yet Marx’s theory appears to apply perfectly here, since the profits don’t trickle down to the diamond miners but are instead concentrated among the executives. </p>
<p>Most of my knowledge comes from econ 101 and various books (all secondary, nothing by Smith, Marx or Keynes yet) and blogs, so feel free to critique away.</p>
<p>Also, why is this a business major forum instead of an economics major forum? Economics could also cover accounting, finance, public policy, international trade, and other related majors, not just business.</p>