Types of socially necessary work and labor theory of value

The value of commodities becomes the socially necessary labor time required to produce them. This is why, if a commodity uses the same labor time as another, then both have the same magnitude of value.

In socialism, investments in socially necessary labor are not spontaneous. They are consequences of the competition between merchandise and producers, they are established in a planned and organized way.

Socially necessary work can be classified into:

Socially necessary work in socialism

The reduction of socially necessary labor costs per unit of products allows an increase in the volume of business production output, raises the standard of living of those who work and lowers prices and costs.

The theory of value and work is known as a heterodox theory of economics in which the value of a service or a good is considered or determined by the amount of work that is needed to carry it out, instead of being evaluated by the utility that the owner finds you.

In current times, this concept is generally associated with the critique of political economy proposed by Karl Marx, although it is also used in theories of classical economists such as David Ricardo and later in anarchist economics.

Value of the goods

A merchandise is defined as a service or an object characterized by satisfying imaginary or real needs. The merchandise is the product that exists only in commercial companies.

Capitalism is the most developed and complex mercantile economy, therefore, production is presented as a commodity. Mercantile companies are composed mainly of production to exchange and not to satisfy their own desires.

The characteristics of the goods are:

• Use Value: Use  value is defined as the ability of an object to satisfy a need. It is determined by its natural condition. This system of production of goods or capitalist production differs from exchange value because the latter has a magnitude that is determined by the amount of work socially necessary to carry out the goods, while the use value is differentiated by the characteristics of the subject and by the concrete and specific use with which it is used, depending on its characteristics.
• Exchange value: An economic good is a commodity that has a use value. It also has an exchange value because its ideal is to become exchanged for different use values.