Labor Theory of Value

The Labor Theory of Value, rooted in Marxism, asserts that the value of a commodity is determined by the amount of socially necessary labor time required to produce it. In simpler terms, the effort and time spent by workers in creating goods give those goods their true worth. This theory critiques capitalism, arguing that workers are paid less than the value they create, leading to exploitation. In the context of Historical Materialism, it underscores how economic systems shape social relations and class struggles throughout history, highlighting the inherent conflict between labor and capital.