Claude.AI: what if Marx had been a marginalist?
This is an intriguing counterfactual that would have significantly altered Marx's critique of capitalism in Das Kapital. To explore this, let's first briefly recap the key differences between Marx's labor theory of value and the marginalist theory of value, then consider how accepting marginalism might have changed Marx's analysis. Marx's labor theory of value posits that the value of a commodity is determined by the socially necessary labor time required to produce it. This forms the basis of his concepts of surplus value and exploitation, which are central to his critique of capitalism. The marginalist theory of value, developed later by economists like William Stanley Jevons, Carl Menger, and Léon Walras, argues that the value of a good is determined by its marginal utility to consumers, not by labor inputs. This theory explains price formation through supply and demand dynamics. If Marx had accepted the marginalist theory of value, several key aspects of Das Ka...