#20. La théorie de la valeur-travail (Ricardo)

A few further clarifications: To maintain consistency with the example of the beaver and the deer, I show that the existence of intermediaries modifies the labor theory of value. Ricardo, for his part, places great emphasis on the length of time capital is tied up before it can be used for production. For example, for capital tied up for two years, a rate of profit will be levied on it twice, once per year, which also modifies the labor theory of value. The calculations and consequences are the same as those described in the video with the trap and the bow, on which profits are levied twice. The desire of Smith, and later Ricardo, to base the value of goods on a common standard is indeed a failure, insofar as we see that taking intermediaries into account (or the length of time capital is tied up) modifies the value of goods without changing the ratio between the quantities of labor that were necessary for their production. But it is a partial failure, because this consideration does not completely alter the ratios between these values. This is why Ricardo initially believed this theory to be a good approximation for understanding the origin of the value of goods. Many thanks to Gilles (Heu?reka) for proofreading the script and for our discussions on the subject. To learn more about this topic, you can refer directly to Chapter I (sections I to VII) of Ricardo's "Principles of Political Economy and Taxation" (1817), which is quite readable. Regarding his alternative model, Ricardo discusses it in his "Essay on the Influence of a Low Price of Wheat on Profits" (1815). For further analysis of these writings, I recommend these two excellent books: History of Economic Thought by Ghislain Deleplace. History of Economic Thought by Henri Denis. The video sequence at the end is an excerpt from the film: OSS 117: Lost in Rio. Regarding the calculations mentioned in the video: For a 10% profit rate, the ratio between the value of the beaver and that of the fallow deer is: [(4 * 1.10 + 2) * 1.10] / [(1 * 1.10 + 1) * 1.10] = 3.0476 For a 20% profit rate, the ratio between the value of the beaver and that of the fallow deer is: [(4 * 1.20 + 2) * 1.20] / [(1 * 1.20 + 1) * 1.20] = 3.0909. A big thank you also to my little sister (Louise) for the opening credits and transition sequences.