Page "Labor theory of value" Paragraph 59

It is arguable to what extent these classical theorists held the labor theory of value as it is commonly defined.

For instance, David Ricardo theorized that prices are determined by the amount of labor but found exceptions for which the labor theory could not account.

In a letter, he wrote: " I am not satisfied with the explanation I have given of the principles which regulate value.

" Adam Smith theorized that the labor theory of value holds true only in the " early and rude state of society " but not in a modern economy where owners of capital are compensated by profit.

As a result, " Smith ends up making little use of a labor theory of value.