Anarchist economics in the context of "Labor theory of value"

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⭐ Core Definition: Anarchist economics

Anarchism is a political philosophy and movement that seeks to abolish all institutions that perpetuate authority, coercion, or hierarchy, primarily targeting the state and capitalism. Anarchism advocates for the replacement of the state with stateless societies and voluntary free associations. A historically left-wing movement, anarchism is usually described as the libertarian wing of the socialist movement (libertarian socialism).

Although traces of anarchist ideas are found all throughout history, modern anarchism emerged from the Enlightenment. During the latter half of the 19th and the first decades of the 20th century, the anarchist movement flourished in most parts of the world and had a significant role in workers' struggles for emancipation. Various anarchist schools of thought formed during this period. Anarchists have taken part in several revolutions, most notably in the Paris Commune, the Russian Civil War and the Spanish Civil War, whose conclusion marked the end of the classical era of anarchism. In the last decades of the 20th and into the 21st century, the anarchist movement has been resurgent once more, growing in popularity and influence within anti-capitalist, anti-war and anti-globalisation movements.

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👉 Anarchist economics in the context of Labor theory of value

The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of "socially necessary labor" required to produce it. The contrasting system is typically known as the subjective theory of value.

The LTV is usually associated with Marxian economics, although it originally appeared in the theories of earlier classical economists such as Adam Smith and David Ricardo, and later in anarchist economics. Smith saw the price of a commodity as a reflection of how much labor it can "save" the purchaser. The LTV is central to Marxist theory, which holds that capitalists' expropriation of the surplus value produced by the working class is exploitative. Modern mainstream economics rejects the LTV and uses a theory of value based on subjective preferences.

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Anarchist economics in the context of Mutualism (economic theory)

Mutualism is an anarchist school of thought and economic theory that advocates for workers' control of the means of production, a free market made up of individual artisans, sole proprietorships and workers' cooperatives, and occupation and use property rights. As proponents of the labour theory of value and labour theory of property, mutualists oppose all forms of economic rent, profit and non-nominal interest, which they see as relying on the exploitation of labour. Mutualists seek to construct an economy without capital accumulation or concentration of land ownership. They also encourage the establishment of workers' self-management, which they propose could be supported through the issuance of mutual credit by mutual banks, with the aim of creating a federal society.

Mutualism has its roots in the utopian socialism of Robert Owen and Charles Fourier. It first developed a practical expression in Josiah Warren's community experiments in the United States, which he established according to the principles of equitable commerce based on a system of labor notes. Mutualism was first formulated into a comprehensive economic theory by the French anarchist Pierre-Joseph Proudhon, who proposed the abolition of unequal exchange and the establishment of a new economic system based on reciprocity. In order to establish such a system, he proposed the creation of a "People's Bank" that could issue mutual credit to workers and eventually replace the state; although his own attempts to establish such a system were foiled by the 1851 French coup d'état.

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