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NOTE What was Adam Smith's labor theory of value?

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He said, therefore, we can't deal with consumers, we can't deal with non-reproducible goods, we have to deal with reproducible goods.

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And since we can't talk about consumers, value must come from something inherent in the object, namely, labor hours.

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Another reason to use labor hours is that he and Ricardo were trying to measure value all the time.

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Because science meant measurement, even in those days, for these people.

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And so therefore, how do you measure value and how do you measure changes?

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Looking for some hard quantity and it concluded labor hours was about the best thing they could get to.

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So that was one big fallacy, one big dominant fallacy in economic thought.