M。ProudhonhasthemisfortuneofbeingpeculiarlymisunderstoodinEurope。InFrance，hehastherighttobeabadeconomist，becauseheisreputedtobeagoodGermanphilosopher。InGermany，hehastherighttobeabadphilosopher，becauseheisreputedtobeoneoftheablestFrencheconomists。BeingbothGermanandeconomistatthesametime，wedesiretoprotestagainstthisdoubleerror。
ThereaderwillunderstandthatinthisthanklesstaskwehaveoftenhadtoabandonourcriticismofM。ProudhoninordertocriticizeGermanphilosophy，andatthesametimetogivesomeobservationsonpoliticaleconomy。
KarlMarxBrussels，June15，1847
M。Proudhon’sworkisnotjustatreatiseonpoliticaleconomy，anordinarybook;itisabible。\"mysteries\"，\"SecretsWrestedfromtheBosomofGod\"，\"Revelations\"——itlacksnothing。Butasprophetsarediscussednowadaysmoreconscientiouslythanprofanewriters，thereadermustresignhimselftogoingwithusthroughthearidandgloomyeruditionsof\"Genesis\"，inordertoascendlater，withM。Proudhon，intotheetherealandfertilerealmofsuper—socialism。（SeeProudhon，PhilosophyofPoverty，Prologue，p。III，line20。）
Chapter1
ASCIENTIFICDISCOVERY
1。
THEANTITHESISOFUSEVALUEANDEXCHANGEVALUE
\"Thecapacityforallproducts，whethernaturalorindustrial，tocontributetoman’ssubsistenceisspecificallytermedusevalue;theircapacitytobegiveninexchangeforoneanother，exchangevalue……Howdoesusevaluebecomeexchangevalue？……Thegenesisoftheideaof（exchange）valuehasnotbeennotedbyeconomistswithsufficientcare。Itisnecessary，therefore，forustodwelluponit。SinceaverylargenumberofthethingsIneedoccurinnatureonlyinmoderatequantities，orevennotatall，IamforcedtoassistintheproductionofwhatIlack。AndasIcannotsetmyhandtosomanythings，Ishallproposetoothermen，mycollaboratorsinvariousfunctions，tocedetomeapartoftheirproductsinexchangeformine。\"
（Proudhon，Vol。I，Chap。II）
M。Proudhonundertakestoexplaintousfirstofallthedoublenatureofvalue，the\"distinctioninvalue\"，theprocessbywhichusevalueistransformedintoexchangevalue。ItisnecessaryforustodwellwithM。Proudhonuponthisactoftransubstantiation。Thefollowingishowthisactisaccomplished，accordingtoourauthor。
Averylargenumberofproductsarenottobefoundinnature，theyareproductsofindustry。Ifman’sneedsgobeyondnature’sspontaneousproduction，heisforcedtohaverecoursetoindustrialproduction。WhatisthisindustryinM。Proudhon’sview？Whatisitsorigin？Asingleindividual，feelingtheneedforaverygreatnumberofthings，\"cannotsethishandtosomanythings\"。Somanythingstoproducepresupposeatoncemorethanoneman’shandhelpingtoproducethem。Now，themomentyoupostulatemorethanonehandhelpinginproduction，youatoncepresupposeawholeproductionbasedonthedivisionoflabor。Thusneed，asM。Proudhonpresupposesit，itselfpresupposesthewholedivisionoflabor。Inpresupposingthedivisionoflabor，yougetexchange，and，consequently，exchangevalue。Onemightaswellhavepresupposedexchangevaluefromtheverybeginning。
ButM。Proudhonpreferstogotheroundaboutway。Letusfollowhiminallhisdetours，whichalwaysbringhimbacktohisstartingpoint。
Inordertoemergefromtheconditioninwhicheveryoneproducesinisolationandtoarriveatexchange，\"Iturntomycollaboratorsinvariousfunctions，\"saysM。Proudhon。I，myself，then，havecollaborators，allwithdifferentfunction。Andyet，forallthat，Iandalltheothers，alwaysaccordingtoM。Proudhon’ssupposition，havegotnofartherthanthesolitaryandhardlysocialpositionoftheRobinsons。Thecollaboratorsandthevariousfunctions，thedivisionoflaborandtheexchangeitimplies，arealreadyathand。
Tosumup：Ihavecertainneedswhicharefoundedonthedivisionoflaborandonexchange。Inpresupposingtheseneeds，M。Proudhonhasthuspresupposedexchange，exchangevalue，theverythingofwhichhepurposesto\"notethegenesiswithmorecarethanothereconomists\"。
M。Proudhonmightjustaswellhaveinvertedtheorderofthings，withoutinanywayaffectingtheaccuracyofhisconclusions。Toexplainexchangevalue，wemusthaveexchange。Toexplainexchange，wemusthavethedivisionoflabor。Toexplainthedivisionoflabor，wemusthaveneedswhichrendernecessarythedivisionoflabor。Toexplaintheseneeds，wemust\"presuppose\"them，whichisnottodenythem——contrarytothefirstaxiominM。Proudhon’sprologue：\"TopresupposeGodistodenyHim。\"（Prologue，p。1）
HowdoesM。Proudhon，whoassumesthedivisionoflaborastheknown，managetoexplainexchangevalue，whichforhimisalwaystheunknown？
\"Aman\"setsoutto\"proposetoothermen，hiscollaboratorsinvariousfunctions\"，thattheyestablishexchange，andmakeadistinctionbetweenordinaryvalueandexchangevalue。Inacceptingthisproposeddistinction，thecollaboratorshaveleftM。Proudhonnoother\"care\"thanthatofrecordingthefact，ormarking，of\"noting\"inhistreatiseonpoliticaleconomy\"thegenesisoftheideaofvalue\"。Buthehasstilltoexplaintousthe\"genesis\"ofthisproposal，totellusfinallyhowthissingleindividual，thisRobinson[Crusoe]，suddenlyhadtheideaofmaking\"tohiscollaborators\"
aproposalofthetypeknownandhowthesecollaboratorsaccepteditwithouttheslightestprotest。
M。Proudhondoesnotenterintothesegenealogicaldetails。Hemerelyplacesasortofhistoricalstampuponthefactofexchange，bypresentingitintheformofamotion，madebyathirdparty，thatexchangebeestablished。
Thatisasampleofthe\"historicalanddescriptivemethod\"ofM。Proudhon，whoprofessesasuperbdisdainforthe\"historicalanddescriptivemethods\"oftheAdamSmithsandRicardos。
Exchangehasahistoryofitsown。Ithaspassedthroughdifferentphases。Therewasatime，asintheMiddleAges，whenonlythesuperfluous，theexcessofproductionoverconsumption，wasexchanged。
Therewasagainatime，whennotonlythesuperfluous，butallproducts，allindustrialexistence，hadpassedintocommerce，whenthewholeofproductiondependedonexchange。Howarewetoexplainthissecondphaseofexchange——marketablevalueatitssecondpower？
M。Proudhonwouldhaveareplyready—made：Assumethatamanhas\"proposedtoothermen，hiscollaboratorsinvariousfunctions\"，toraisemarketablevaluetoitssecondpower。
Finally，therecameatimewheneverythingthatmenhadconsideredasinalienablebecameanobjectofexchange，oftrafficandcouldbealienated。
Thisisthetimewhentheverythingswhichtillthenhadbeencommunicated，butneverexchanged;given，butneversold;acquired，butneverbought——virtue，love，conviction，knowledge，conscience，etc。——wheneverything，inshort，passedintocommerce。Itisthetimeofgeneralcorruption，ofuniversalvenality，or，tospeakintermsofpoliticaleconomy，thetimewheneverything，moralorphysical，havingbecomeamarketablevalue，isbroughttothemarkettobeassessedatitstruestvalue。
How，again，canweexplainthisnewandlastphaseofexchange——marketablevalueatitsthirdpower？
M。Proudhonwouldhaveareplyready—made：Assumethatapersonhas\"proposedtootherpersons，hiscollaboratorsinvariousfunctions\"，tomakeamarketablevalueoutofvirtue，love，etc。，toraiseexchangevaluetoitsthirdandlastpower。
WeseethatM。Proudhon’s\"historicalanddescriptivemethod\"
isapplicabletoeverything，itanswerseverything，explainseverything。
Ifitisaquestionaboveallofexplaininghistorically\"thegenesisofaneconomicidea\"，itpostulatesamanwhoproposestoothermen，\"hiscollaboratorsinvariousfunctions\"，thattheyperformthisactofgenesisandthatistheendofit。
Weshallhereafteracceptthe\"genesis\"ofexchangevalueasanaccomplishedact;itnowremainsonlytoexpoundtherelationbetweenexchangevalueandusevalue。LetushearwhatM。Proudhonhastosay：
\"Economistshaveverywellbroughtoutthedoublecharacterofvalue，butwhytheyhavenotpointedoutwiththesameprecisionisitscontradictorynature;thereiswhereourcriticismbegins……
\"Itisasmallthingtohavedrawnattentiontothissurprisingcontrastbetweenusevalueandexchangevalue，inwhicheconomistshavebeenwonttoseeonlysomethingverysimple：wemustshowthatthisallegedsimplicityconcealsaprofoundmysteryintowhichitisourdutytopenetrate……
\"Intechnicalterms，usevalueandexchangevaluestandininverseratiotoeachother。\"
IfwehavethoroughlygraspedM。Proudhon’sthoughtthefollowingarethefourpointswhichhesetsouttoestablish：
Usevalueandexchangevalueforma\"surprisingcontrast\"，theyareinoppositiontoeachother。
Usevalueandexchangevalueareininverseratio，incontradiction，toeachother。
Economistshaveneitherobservednotrecognizedeithertheoppositionorthecontradiction。
M。Proudhon’scriticismbeginsattheend。
We，too，shallbeginattheend，and，inordertocleartheeconomistsfromM。Proudhon’saccusations，weshalllettwosufficientlywell—knowneconomistsspeakforthemselves。
SISMONDI：
\"Itistheoppositionbetweenusevalueandexchangevaluetowhichcommercehasreducedeverything，etc。\"
（Etudes，VolumeII，p。162，Brusselsedition）
LAUDERDALE：
\"Inproportionastherichesofindividualsareincreasedbyanaugmentationofthevalueofanycommodity，thewealthofthesocietyisgenerallydiminished;andinproportionasthemassofindividualrichesisdiminished，bythediminutionofthevalueofanycommodity，itsopulenceisgenerallyincreased。\"
（Recherchessurlanatureetl’originedelarichessepublique;translatedbyLangentiedeLavaisse。Paris1808[p。33]）[1]
Sismondifoundedontheoppositionbetweenusevalueandexchangevaluehisprincipaldoctrine，accordingtowhichdiminutioninrevenueisproportionaltotheincreaseinproduction。
Lauderdalefoundedhissystemontheinverseratioofthetwokindsofvalue，andhisdoctrinewasindeedsopopularinRicardo’stimethatthelattercouldspeakofitasofsomethinggenerallyknown。
\"Itisthroughconfoundingtheideasofvalueandwealth，orrichesthatithasbeenasserted，thatbydiminishingthequantityofcommodities，thatistosay，ofthenecessaries，conveniences，andenjoymentsofhumanlife，richesmaybeincreased。\"
（Ricardo，Principlesdela’economiepolitiquetranslatedbyConstancio，annotationsbyJ。B。Say。
Paris1835;VolumeII，chapterSurlavaleuretlesrichesses）
WehavejustseenthattheeconomistsbeforeM。Proudhonhad\"drawnattention\"
totheprofoundmysteryofoppositionandcontradiction。LetusnowseehowM。Proudhonexplainsthismysteryaftertheeconomists。
Theexchangevalueofaproductfallsasthesupplyincreases，thedemandremainingthesame;inotherwords，themoreabundantaproductisrelativelytothedemand，thelowerisitsexchangevalue，orprice。
Viceversa：Theweakerthesupplyrelativelytothedemand，thehigherrisestheexchangevalueorthepriceoftheproductsupplied：inotherwords，thegreaterthescarcityintheproductssupplied，relativelytothedemand，thehighertheprices。Theexchangevalueofaproductdependsuponitsabundanceoritsscarcity;butalwaysinrelationtothedemand。
Takeaproductthatismorethanscarce，uniqueofitskindifyouwill：
thisuniqueproductwillbemorethanabundant，itwillbesuperfluous，ifthereisnodemandforit。Ontheotherhand，takeaproductmultipliedintomillions，itwillalwaysbescarceifitdoesnotsatisfythedemand，thatis，ifthereistoogreatademandforit。
Thesearewhatweshouldalmostcalltruisms，yetwehavehadtorepeatthemhereinordertorenderM。Proudhon’smysteriescomprehensible。
\"Sothat，followinguptheprincipletoitsultimateconsequences，onewouldcometotheconclusion，themostlogicalintheworld，thatthethingswhoseuseisindispensableandwhosequantityisunlimitedshouldbehadfornothing，andthosewhoseutilityisnilandwhosescarcityisextremeshouldbeofincalculableworth。Tocapthedifficulty，theseextremesareimpossibleinpractice：ontheonehand，nohumanproductcouldeverbeunlimitedinmagnitude;ontheother，eventhescarcestthingsmustperforcebeusefultoacertaindegree，otherwisetheywouldbequitevalueless。
Usevalueandexchangevaluearethusinexorablyboundupwitheachother，althoughbytheirnaturetheycontinuallytendtobemutuallyexclusive。\"
（VolumeI，p。39）
WhatcapsM。Proudhon’sdifficulty？Thathehassimplyforgottenaboutdemand，andthatathingcanbescarceorabundantonlyinsofarasitisindemand。Themomentheleavesoutdemand，heidentifiesexchangevaluewithscarcityandusevaluewithabundance。Inreality，insayingthatthings\"whoseutilityisnilandscarcityextremeareofincalculableworth\"，heissimplydeclaringthatexchangevalueismerelyscarcity。\"Scarcityextremeandutilitynil\"meanspurescarcity。\"Incalculableworth\"isthemaximumofexchangevalue，itispureexchangevalue。Heequatesthesetwoterms。Thereforeexchangevalueandscarcityareequivalentterms。
Inarrivingatthesealleged\"extremeconsequences\"，M。Proudhonhasinfactcarriedtotheextreme，notthethings，butthetermswhichexpressthem，and，insodoing，heshowsproficiencyinrhetoricratherthaninlogic。Hemerelyrediscovershisfirsthypothesesinalltheirnakedness，whenhethinkhehasdiscoverednewconsequences。Thankstothesameprocedurehesucceedsinidentifyingusevaluewithpureabundance。
Afterhavingequatedexchangevalueandscarcity，usevalueandabundance，M。Proudhonisquiteastonishednottofindusevalueinscarcityandexchangevalue，norexchangevalueinabundanceandusevalue;andseeingthattheseextremesareimpossibleinpractice，hecandonothingbutbelieveinmystery。Incalculableworthexistsforhim，becausebuyersdonotexist，andhewillneverfindanybuyers，solongasheleavesoutdemand。
Ontheotherhand，M。Proudhon’sabundanceseemstobesomethingspontaneous。Hecompletelyforgetsthattherearepeoplewhoproduceit，andthatitistotheirinterestnevertolosesightofdemand。Otherwise，howcouldM。Proudhonhavesaidthatthingswhichareveryusefulmusthaveaverylowprice，orevencostnothing？Onthecontrary，heshouldhaveconcludedthatabundance，theproductionofveryusefulthings，shouldberestrictediftheirprice，theirexchangevalueistoberaised。
Theoldvine—growersofFranceinpetitioningforalawtoforbidtheplantingofnewvines;theDutchinburningAsiaticspices，inuprootingclovetreesintheMoluccas，weresimplytryingtoreduceabundanceinordertoraiseexchangevalue。DuringthewholeoftheMiddleAgesthissameprinciplewasactedupon，inlimitingbylawsthenumberofjourneymenasinglemastercouldemployandthenumberofimplementshecoulduse。
（SeeAnderson，HistoryofCommerce。）[Thefullreference：A。Anderson，AnHistoricalandChronologicalDeductionoftheOriginofCommercefromtheEarliestAccountstothePresentTime。FirsteditionappearedinLondonin1764。p。33]
Afterhavingrepresentedabundanceasusevalueandscarcityasexchangevalue——nothingindeediseasierthantoprovethatabundanceandscarcityareininverseratio——M。Proudhonidentifiesusevaluewithsupplyandexchangevaluewithdemand。Tomaketheantithesisevenmoreclear—cut，hesubstitutesanewterm，putting\"estimationvalue\"
insteadofexchangevalue。Thebattlehasnowshifteditsground，andwehaveononesideutility（usevalue，supply），ontheotherside，estimation（exchangevalue，demand）。
Whoistoreconcilethesetwocontradictoryforces？Whatistobedonetobringthemintoharmonywitheachother？Isitpossibletofindinthemevenasinglepointofcomparison？
\"Certainly，\"criesM。Proudhon，\"thereisone——freewill。Thepriceresultingfromthisbattlebetweensupplyanddemand，betweenutilityandestimationwillnotbetheexpressionofeternaljustice。\"
M。Proudhongoesontodevelopthisantithesis。
\"Inmycapacityasafreebuyer，Iamjudgeofmyneeds，judgeofthedesirabilityofanobject，judgeofthepriceIamwillingtopayforit。
Ontheotherhand，inyourcapacityasafreeproducer，youaremasterofthemeansofexecution，andinconsequence，youhavethepowertoreduceyourexpenses。\"
（VolumeI，p。41）
Andasdemand，orexchangevalue，isidenticalwithestimation，M。Proudhonisledtosay：
\"Itisprovedthatitisman’sfreewillthatgivesrisetotheoppositionbetweenusevalueandexchangevalue。Howcanthisoppositionberemoved，solongasfreewillexists？Andhowcanthelatterbesacrificedwithoutsacrificingmankind？\"
（VolumeI，p。41）
Thusthereisnopossiblewayout。Thereisastrugglebetweentwoasitwereincommensurablepowers，betweenutilityandestimation，betweenthefreebuyerandthefreeproducer。
Letuslookatthingsalittlemoreclosely。
Supplydoesnotrepresentexclusivelyutility，demanddoesnotrepresentexclusivelyestimation。Doesnotthedemanderalsosupplyacertainproductorthetokenrepresentingallproducts——viz。，money;andassupplier，doeshenotrepresent，accordingtoM。Proudhon，utilityorusevalue？
Again，doesnotthesupplieralsodemandacertainproductorthetokenrepresentingallproduct——viz。，money？Anddoeshenotthusbecometherepresentativeofestimation，ofestimationvalueorofexchangevalue？
Demandisatthesametimeasupply，supplyisatthesametimeademand。ThusM。Proudhon’santithesis，insimplyidentifyingsupplyanddemand，theonewithutility，theotherwithestimation，isbasedonlyonafutileabstraction。
WhatM。Proudhoncallsusevalueiscalledestimationvaluebyothereconomists，andwithjustasmuchright。WeshallquoteonlyStorch（Coursd’economiepolitique，Paris1823，pp。48and49）。
Accordingtohim，needsarethethingsforwhichwefeeltheneed;valuesarethingstowhichweattributevalue。Mostthingshavevalueonlybecausetheysatisfyneedsengenderedbyestimation。Theestimationofourneedsmaychange;thereforetheutilityofthings，whichexpressesonlytherelationofthesethingstoourneeds，mayalsochange。
Naturalneedsthemselvesarecontinuallychanging。Indeed，whatcouldbemorevariedthantheobjectswhichformthestaplefoodofdifferentpeoples！
Theconflictdoesnottakeplacebetweenutilityandestimation;
ittakesplacebetweenthemarketablevaluedemandedbythesupplierandthemarketablevaluesuppliedbythedemander。Theexchangevalueoftheproductiseachtimetheresultantofthesecontradictoryappreciations。
Infinalanalysis，supplyanddemandbringtogetherproductionandconsumption，butproductionandconsumptionbasedonindividualexchanges。
Theproductsuppliedisnotusefulinitself。Itistheconsumerwhodeterminesitsutility。Andevenwhenitsqualityofbeingusefulisadmitted，itdoesnotexclusivelyrepresentutility。Inthecourseofproduction，ithasbeenexchangedforallthecostsofproduction，suchasrawmaterials，wagesofworkers，etc。，allofwhicharemarketablevalues。Theproduct，therefore，represents，intheeyesoftheproducer，asumtotalofmarketablevalues。Whathesuppliesisnotonlyausefulobject，butalsoandaboveallamarketablevalue。
Astodemand，itwillonlybeeffectiveonconditionthatithasmeansofexchangeatitsdisposal。Thesemeansarethemselvesproducts，marketablevalue。
Insupplyanddemand，then，wefindontheonehandaproductwhichhascostmarketablevalues，andtheneedtosell;ontheother，meanswhichhavecostmarketablevalues，andthedesiretobuy。
M。Proudhonopposesthefreebuyertothefreeproducer。Totheoneandtotheotherheattributespurelymetaphysicalqualities。Itisthisthatmakeshimsay：
\"Itisprovedthatitisman’sfreewillthatgivesrisetotheoppositionbetweenusevalueandexchangevalue。\"
[I41]
Theproducer，themomentheproducesinasocietyfoundedonthedivisionoflaborandonexchange（andthatisM。Proudhon’shypothesis），isforcedtosell。M。Proudhonmakestheproducermasterofthemeansofproduction;
buthewillagreewithusthathismeansofproductiondonotdependonfreewill。Moreover，manyofthesemeansofproductionareproductswhichhegetsfromtheoutside，andinmodernproductionheisnotevenfreetoproducetheamounthewants。Theactualdegreeofdevelopmentoftheproductiveforcescompelshimtoproduceonsuchorsuchascale。
Theconsumerisnofreerthantheproducer。Hisjudgmentdependsonhismeansandhisneeds。Bothofthesearedeterminedbyhissocialposition，whichitselfdependsonthewholesocialorganization。True，theworkerwhobuyspotatoesandthekeptwomanwhobuyslacebothfollowtheirrespectivejudgments。Butthedifferenceintheirjudgementsisexplainedbythedifferenceinthepositionswhichtheyoccupyintheworld，andwhichthemselvesaretheproductofsocialorganization。
Istheentiresystemofneedsonestimationoronthewholeorganizationofproduction？Mostoften，needsarisedirectlyfromproductionorfromastateofaffairsbasedonproduction。Thus，tochooseanotherexample，doesnottheneedforlawyerssupposeagivencivillawwhichisbuttheexpressionofacertaindevelopmentofproperty，thatistosay，ofproduction？
ItisnotenoughforM。Proudhontohaveeliminatedtheelementsjustmentionedfromtherelationofsupplyanddemand。Hecarriesabstractiontothefurthestlimitswhenhefusesallproducersintoonesingleproducer，allconsumersintoonesingleconsumer，andsetsupastrugglebetweenthesetwochimericalpersonages。Butintherealworld，thingshappenotherwise。
Thecompetitionamongthesuppliersandthecompetitionamongthedemandersformanecessarypartofthestrugglebetweenbuyersandsellers，ofwhichmarketablevalueistheresult。
Afterhavingeliminatedcompetitionandthecostofproduction，M。Proudhoncanathiseasereducetheformulaofsupplyanddemandtoanabsurdity。
\"Supplyanddemand，\"hesays，\"aremerelytwoceremonialformsthatservetobringusevalueandexchangevaluefacetoface，andtoleadtotheirreconciliation。Theyarethetwoelectricpoleswhich，whenconnected，mustproducethephenomenonofaffinitycalledexchange。\"
（VolumeI，pp。49and50）
Onemightaswellsaythatexchangeismerelya\"ceremonialform\"forintroducingtheconsumertotheobjectofconsumption。Onemightaswellsaythatalleconomicrelationsare\"ceremonialforms\"servingimmediateconsumptionasgo—betweens。Supplyanddemandareneithermorenorlessrelationsofagivenproductionthanareindividualexchanges。
What，then，doesallM。Proudhon’sdialecticconsistin？Inthesubstititionforusevalueandexchangevalue，forsupplyanddemand，ofabstractandcontradictorynotionslikescarcityandabundance，utilityandestimation，oneproducerandoneconsumer，bothofthemknightsoffreewill。
Andwhatwasheaimingat？
Atarrangingforhimselfameansofintroducinglaterononeoftheelementshehadsetaside，thecostofproduction，asthesynthesisofusevalueandexchangevalue。Anditisthusthatinhiseyesthecostofproductionconstitutessyntheticvalueorconstitutedvalue。
2。
CONSTITUTEDVALUEORSYNTHETICVALUE
\"Value（marketablevalue）isthecorner—stoneoftheeconomicstructure。\"\"Constituted\"valueisthecorner—stoneofthesystemofeconomiccontradictions。
Whatthenisthis\"constitutedvalue’whichisallM。Proudhonhasdiscoveredinpoliticaleconomy？
Onceutilityisadmitted，laboristhesourceofallvalue。Themeasureoflaboristime。Therelativevalueofproductsisdeterminedbythelabortimerequiredfortheirproduction。Priceisthemonetaryexpressionoftherelativevalueofaproduct。Finally，thetheconstitutedvalueofaproductispurelyandsimplythevaluewhichisconstitutedbythelabortimeincorporatedinit。
JustasAdamSmithdiscoveredthedivisionoflabor，sohe，M。
Proudhon，claimstohavediscovered\"constitutedvalue\"。Thisisnotexactly\"somethingunheardof\"，butthenitmustbeadmittedthatthereisnothingunheardofinnydiscoveryofeconomicscience。M。Proudhon，whoappreciatestothefulltheimportanceofhisowninvention，seeksneverthelesstotonedownthemerittherefore\"inordertoreassurethereadertoashisclaimstooriginality，andtowinovermindswhosetimidityrendersthemlittlefavorabletonewideas\"。Butinapportioningthecontributionmadebyeachofhispredecessorstotheunderstandingofvalue，heisforcedtoconfessopenlythatthelargestportion，thelion’sshare，ofthemeritfallstohimself。
\"ThesyntheticideaofvaluehadbeenvaguelyperceivedbyAdamSmith……
ButwithAdamSmiththeideaofvaluewasentirelyintuitive。Now，societydoesnotchangeitshabitsmerelyonthestrengthofintuitions：itsdecisionsaremadeonlyontheauthorityoffacts。Theantinomyhadtobestatedmorepalpablyandmoreclearly：J。B。Saywasitschiefinterpreter。\"
[I66]
Here，inanutshell，isthehistoryofthediscoveryofsyntheticvalue：
AdamSmith——vagueintuition;J。B。Say——antinomy;M。Proudhon——constitutingand\"constituted\"truth。Andlettherebenomistakeaboutit：alltheothereconomists，fromSaytoProudhon，havemerelybeentrudgingalongintherutofantimony。
\"Itisincrediblethatforthelast40yearssomanymenofsenseshouldhavefumedandfrettedatsuchasimpleidea。Butno，valuesarecomparedwithouttherebeinganypointofcomparisonbetweenthemandwithnounitofmeasurements;this，ratherthanembracetherevolutionarytheoryofequality，iswhattheeconomistsofthe19thcenturyareresolvedtoupholdagainstallcomers。Whatwillposteritysayaboutit？\"
（Vol。I，p。68）
Posterity，soabruptlyinvoked，willbeginbygettingmuddledoverthechronology。Itisboundtoaskitself：arenotRicardoandhisschooleconomistsofthe19thcentury？Ricardo’ssystem，puttingasaprinciplethat\"therelativevalueofcommoditiescorrespondsexclusivelytotheirproduction\"，datesfrom1817。RicardoistheheadofawholeschooldominantinEnglandsincetheRestoration。[TheperiodinquestionbeginsaftertheterminationoftheNapoleonicwarsandrestorationoftheBourbondynastyinFrancein1815。]TheRicardiandoctrinesummarizesseverely，remorselessly，thewholeoftheEnglishbourgeoisie。\"Whatwillposteritysayaboutit？\"ItwillnotsaythatM。ProudhondidnotknowRicardo，forhetalksabouthim，hetalksatlengthabouthim，hekeepscomingbacktohim，andconcludesbycallinghissystem\"trash\"。Ifeverposteritydoesinterfere，itwillsayperhapsthatM。Proudhon，afraidofoffendinghisreaders’Anglophobia，preferredtomakehimselftheresponsibleeditorofRicardo’sideas。Inanycase，itwillthinkitverynaivethatM。Proudhonshouldgiveasa\"revolutionarytheoryofthefuture\"whatRicardoexpoundedscientificallyasthetheoryofpresent—daysociety，ofbourgeoissociety，andthatheshouldthustakeforthesolutionoftheantinomybetweenutilityandexchangevaluewhatRicardoandhisschoolpresentedlongbeforehimasthescientificformulaofonesinglesideofthisantinomy，thatofexchangevalue。Butletusleaveposterityaloneonceandforall，andconfrontM。ProudhonwithhispredecessorRicardo。Herearesomeextractsfromthisauthorwhichsummarizehisdoctrineonvalue：
\"Utilitytheninnotthemeasureofexchangeablevalue，althoughitisabsolutelyessentialtoit。\"
（Vol。I，p。3，Principlesdel’economiepolitique，etc。，translatedfromtheEnglishbyF。S。Constancio，Paris1835）
\"Possessingutility，commoditiesderivetheirexchangeablevaluefromtwosources：fromtheirscarcity，andfromthequantityoflaborrequiredtoobtaintheM。Therearesomecommodities，thevalueofwhichisdeterminedbytheirscarcityalone。Nolaborcanincreasethequantityofsuchgoods，andthereforetheirvaluecannotbeloweredbyanincreasedsupply。Somerarestatuesandpictures，scarcebooks……areallofthisdescription。
Theirvalue……varieswiththevaryingwealthandinclinationsofthosewhoaredesiroustopossessthem。\"
（Vol。I，pp。4and5，l。c。）
\"Thesecommodities，however，formaverysmallpartofthemassofcommoditiesdailyexchangedinthemarket。Byfarthegreatestpartofthesegoodswhicharetheobjectsofdesire，areprocuredbylabor;andtheymaybemultiplied，notinonecountryalone，butinmany，almostwithoutanyassignablelimit，ifwearedisposedtobestowthelabornecessarytoobtainthem。\"
（Vol。I，pp。5，l。c。）
\"Inspeakingthenofcommodities，oftheirexchangeablevalue，andofthelawswhichregulatetheirrelativeprices，wemeanalwayssuchcommoditiesonlyascanbeincreasedinquantitybytheexertionofhumanindustry，andontheproductionofwhichcompetitionoperateswithoutrestraint。\"
（Vol。I，pp。5）
RicardoquotesAdamSmith，who，accordingtohim，\"soaccuratelydefinedtheoriginalsourceofexchangeablevalue\"（AdamSmith，WealthofNations，BookI，Chap5[Fullreference：AnInquiryintotheNatureandCausesoftheWealthofNations，firsteditionappearinginLondon，1776]），andheadds：
\"Thatthis（i。e。，labortime）isreallythefoundationoftheexchangeablevalueofallthings，exceptingthosewhichcannotbeincreasedbyhumanindustry，isadoctrineoftheutmostimportanceinpoliticaleconomy;
forfromnosourcedosomanyerrors，andsomuchdifferenceofopinioninthatscienceproceed，asfromthevagueideaswhichareattachedtothewordvalue。\"
（Vol。I，p。8）
\"Ifthequantityoflaborrealizedincommoditiesregulatetheirexchangeablevalue，everyincreaseofthequantityoflabormustaugmentthevalueofthatcommodityonwhichitisexercised，aseverydiminutionmustlowerit。\"
（Vol。I，p。8）
RicardogoesontoreproachSmith：
Withhaving\"himselferectedanotherstandardmeasureofvalue\"thanlabor。
\"Sometimeshespeaksofcorn，atothertimesoflabor，asastandardmeasure;
notthequantityoflaborbestowedontheproductionofanyobject，butthequantityitcancommandinthemarket。\"（Vol。I，pp。9and10）
Withhaving\"admittedtheprinciplewithoutqualificationandatthesametimerestricteditsapplicationtothatearlyandrudestateofsociety，whichprecedesboththeaccumulationofstockandtheappropriationofland\"。（Vol。I，p。21）
Ricardosetsouttoprovethattheownershipofland，thatis，groundrent，cannotchangetherelativevalueofcommoditiesandthattheaccumulationofcapitalhasonlyapassingandfluctuationeffectontherelativevaluesdeterminedbythecomparativequantityoflaborexpendedontheirproduction。
Insupportofthisthesis，hegiveshisfamoustheoryofgroundrent，analysescapital，andultimatelyfindsnothinginitbutaccumulatedlabor。Thenhedevelopsawholetheoryofwagesandprofits，andprovesthatwagesandprofitsriseandfallininverseratiotoeachother，withoutaffectingtherelativevalueoftheproduct。Hedoesnotneglecttheinfluencethattheaccumulationofcapitalanditsdifferentaspects（fixedcapitalandcirculatingcapital），asalsotherateofwages，canhaveontheproportionalvalueofproducts。Infact，theyarethechiefproblemswithwhichRicardoisconcerned。
\"Economyintheuseoflaborneverfailstoreducetherelativevalue[2]ofacommodity，whetherthesavingbeinthelabornecessarytothemanufactureofthecommodityitself，orinthatnecessarytotheformationofthecapital，bytheaidofwhichitisproduced。\"
（Vol。I，p。28）
\"Undersuchcircumstancethevalueofthedeer，theproduceofthehunter’sday’slabor，wouldbeexactlyequaltothevalueofthefish，theproduceofthefisherman’sday’slabor。Thecomparativevalueofthefishandthegamewouldbeentirelyregulatedbythequantityoflaborrealizedineach，whatevermightbethequantityofproduction，orhoweverhighorlowgeneralwagesorprofitsmightbe。\"
（Vol。I，p。28）
\"Inmakinglaborthefoundationofthevalueofcommoditiesandthecomparativequantityoflaborwhichisnecessarytotheirproduction，therulewhichdeterminestherespectivequantitiesofgoodswhichshallbegiveninexchangeforeachother，wemustnotbesupposedtodenytheaccidentalandtemporarydeviationsoftheactualormarketpriceofcommoditiesfromthis，theirprimaryandnaturalprice。\"
（Vol。I，p。105，l。c。）
\"Itisthecostofproductionwhichmustultimatelyregulatethepriceofcommodities，andnot，ashasbeenoftensaid，theproportionbetweensupplyanddemand。\"
（Vol。II，p。253）
LordLauderdalehaddevelopedthevariationsofexchangevalueaccordingtothelawofsupplyanddemand，orofscarcityandabundancerelativelytodemand。Inhisopinionthevalueofathingcanincreasewhenitsquantitydecreasesorwhenthedemandforitincreases;itcandecreaseowingtoanincreaseofitsquantityorowingtothedecreaseindemand。Thusthevalueofathingcanchangethrougheightdifferentcauses，namely，fourcausesthatapplytomoneyortoanyothercommoditywhichservesasameasureofitsvalue。HereisRicardo’srefutation：
\"Commoditieswhicharemonopolized，eitherbyanindividual，orbyacompany，varyaccordingtothelawwhichLordLaudersdalehaslaiddown：
theyfallinproportionasthesellersaugmenttheirquantity，andriseinproportiontotheeagernessofthebuyerstopurchasethem;theirpricehasnonecessaryconnexionwiththeirnaturalvalue;butthepricesofcommodities，whicharesubjecttocompetition，andwhosequantitymaybeincreasedinanymoderatedegree，willultimatelydepend，notonthestateofdemandandsupply，butontheincreasedordiminishedcostoftheirproduction。\"
（Vol。II，p。259）
Weshallleaveittothereadertomakethecomparisonbetweenthissimple，clear，preciselanguageofRicardo’sandM。Proudhon’srhetoricalattemptstoarriveatthedeterminationofrelativevaluebylabortime。
Ricardoshowsustherealmovementofbourgeoisproduction，whichconstitutesvalue。M。Proudhon，leavingtherealmovementoutofaccount，\"fumesandfrets\"inordertoinventnewprocessesandtoachievethereorganizationoftheworldonawould—benewformula，whichformulaisnomorethanthetheoreticalexpressionoftherealmovementwhichexistsandwhichissowelldescribedbyRicardo。Ricardotakeshisstartingpointfrompresent—daysocietytodemonstratetoushowitconstitutesvalue——M。Proudhontakesconstitutedvalueashisstartingpointtoconstructanewsocialworldwiththeaidofthisvalue。Forhim，M。Proudhon，constitutedvaluemustmovearoundandbecomeoncemoretheconstitutingfactorinaworldalreadycompletelyconstitutedaccordingtothismodeofevaluation。Thedeterminationofvaluebylabortime，is，forRicardo，thelawofexchangevalue;forM。Proudhon。itisthesynthesisofusevalueandexchangevalue。Ricardo’stheoryofvaluesisthescientificinterpretationofactualeconomiclife;
M。Proudhon’stheoryofvaluesistheutopianinterpretationofRicardo’stheory。Ricardoestablishesthetruthofhisformulabyderivingitfromalleconomicrelations，andbyexplaininginthiswayallphenomena，eventhoselikegroundrent，accumulationofcapitalandtherelationofwagestoprofits，whichatfirstsightseemstocontradictit;itispreciselythatwhichmakeshisdoctrineascientificsystem：M。Proudhon，whohasrediscoveredthisformulaofRicardo’sbymeansofquitearbitraryhypotheses，isforcedthereaftertoseekoutisolatedeconomicfactswhichhetwistsandfalsifiestopassthemoffasexamples，alreadyexistingapplications，beginningofrealizationofhisregeneratingidea。（SeeourS。3。APPLICATION
OFCONSTITUTEDVALUE）
NowletuspassontotheconclusionsM。Proudhondrawsfromvalueconstituted（bylabortime）。
Acertainquantityoflaborisequivalenttotheproductcreatedbythissamequantityoflabor。
Eachday’slaborisworthasmuchasanotherday’slabor;thatistosay，ifthequantitiesareequal，oneman’slaborisworthasmuchasanotherman’slabor：thereisnoqualitativedifference。Withthesamequantityofwork，oneman’sproductcanbegiveninexchangeforanotherman’sproduct。
Allmenarewageworkersgettingequalpayforanequaltimeofwork。Perfectequalityrulestheexchanges。
Aretheseconclusionsthestrict，naturalconsequencesofvalue\"constituted\"
ordeterminedbylabortime？
Iftherelativevalueofacommodityisdeterminedbythequantityoflaborrequiredtoproduceit，itfollowsnaturallythattherelativevalueoflabor，orwages，islikewisedeterminedbythequantityoflaborneededtoproducethewages。Wages，thatis，therelativevalueorthepriceoflabor，arethusdeterminedbythelabortimeneededtoproduceallthatisnecessaryforthemaintenanceoftheworker。
\"Diminishthecostofproductionofhats，andtheirpricewillultimatelyfalltotheirownnewnaturalprice，althoughthedemandshouldbedoubled，trebled，orquadrupled。Diminishthecostofsubsistenceofmen，bydiminishingthenaturalpriceoffoodandclothing，bywhichlifeissustained，andwageswillultimatelyfall，notwithstandingthedemandforlaborersmayverygreatlyincrease。\"
（Ricardo，Vol。II，p。253）
Doubtless，Ricardo’slanguageisascynicalascanbe。Toputthecostofmanufactureofhatsandthecostofmaintenanceofmenonthesameplaneistoturnmenintohats。Butdonotmakeanoutcryatthecynicismofit。Thecynicismisinthefactsandnotinthewordswhichexpressthefacts。FrenchwriterslikeMM。Droz，Blanqui，RossiandotherstakeaninnocentsatisfactioninprovingtheirsuperiorityovertheEnglisheconomists，byseekingtoobservetheetiquetteofa\"humanitarian\"phraseology;iftheyreproachRicardoandhisschoolfortheircynicallanguage，itisbecauseitannoysthemtoseeeconomicrelationsexposedinalltheircrudity，toseethemysteriesofthebourgeoisieunmasked。
Tosumup：Labor，beingitselfacommodity，ismeasuredassuchbythelabortimeneededtoproducethelabor—commodity。Andwhatisneededtoproducethislabor—commodity？Justenoughlabortimetoproducetheobjectsindispensabletotheconstantmaintenanceoflabor，thatis，tokeeptheworkeraliveandinaconditiontopropagatehisrace。Thenaturalpriceoflaborisnootherthanthewageminimum。[3]Ifthecurrentrateofwagesrisesabovethisnaturalprice，itispreciselybecausethelawofvalueputasaprinciplebyM。Proudhonhappenstobecounterbalancedbytheconsequencesofthevaryingrelationsofsupplyanddemand。Buttheminimumwageisnonethelessthecentretowardswhichthecurrentratesofwagesgravitate。
Thusrelativevalue，measuredbylabortime，isinevitablytheformulaofthepresentenslavementoftheworker，insteadofbeing，asM。Proudhonwouldhaveit，the\"revolutionarytheory\"oftheemancipationoftheproletariat。
Letusnowseetowhatextenttheapplicationoflabortimeasameasureofvalueisincompatiblewiththeexistingclassantagonismandtheunequaldistributionoftheproductbetweentheimmediateworkerandtheownerofaccumulatedlabor。
Letustakeaparticularproduct：broadcloth，whichhasrequiredthesamequantityoflaborasthelinen。
Ifthereisanexchangeofthesetwoproducts，thereisanexchangeofequalquantitiesoflabor。Inexchangingtheseequalquantitiesoflabortime，onedoesnotchangethereciprocalpositionoftheproducers，anymorethanonechangesanythinginthesituationoftheworkersandmanufacturersamongthemselves。Tosaythatthisexchangeofproductsmeasuredbylabortimeresultsinanequalityofpaymentforalltheproducersistosupposethatequalityofparticipationintheproductexistedbeforetheexchange。
Whentheexchangeofbroadclothforlinenhasbeenaccomplished，theproducersofbroadclothwillshareinthelineninaproportionequaltothatinwhichtheypreviouslysharedinthebroadcloth。
M。Proudhon’sillusionisbroughtaboutbyhistakingforaconsequencewhatcouldbeatmostbutagratuitoussupposition。
Letusgofurther。
Doeslabortime，asthemeasureofvalue，supposeatleastthatthedaysareequivalent，andthatoneman’sdayisworthasmuchasanother’s？
No。
Letussupposeforamomentthatajeweller’sdayisequivalenttothreedaysofaweaver;thefactremainsthatanychangeinthevalueofjewelsrelativetothatofwovenmaterials，unlessitbethetransitoryresultofthefluctuationsofsupplyanddemand，musthaveasitscauseareductionoranincreaseinthelabortimeexpendedintheproductionofoneortheother。Ifthreeworkingdaysofdifferentworkersberelatedtooneanotherintheratioof1：2：3，theneverychangeintherelativevalueoftheirproductswillbeachangeinthissameproportionof1：2：3。
Thusvaluescanbemeasuredbylabortime，inspiteoftheinequalityofvalueofdifferentworkingdays;buttoapplysuchameasurewemusthaveacomparativescaleofthedifferentworkingdays：itiscompetitionthatsetsupthisscale。
Isyourhour’slaborworthmine？Thatisaquestionwhichisdecidedbycompetition。
Competition，accordingtoanAmericaneconomist，determineshowmanydaysofsimplelaborarecontainedinoneday’scompoundlabor。Doesnotthisreductionofdaysofcompoundlabortodaysofsimplelaborsupposethatsimplelaborisitselftakenasameasureofvalue？Ifthemerequantityoflaborfunctionsasameasureofvalueregardlessofquality，itpresupposesthatsimplelaborhasbecomethepivotofindustry。Itpresupposesthatlaborhasbeenequalizedbythesubordinationofmantothemachineorbytheextremedivisionoflabor;thatmenareeffacedbytheirlabor;
thatthependulumoftheclockhasbecomeasaccurateameasureoftherelativeactivityoftwoworkersasitisofthespeedoftwolocomotives。
Therefore，weshouldnotsaythatoneman’shourisworthanotherman’shour，butratherthatonemanduringanhourisworthjustasmuchasanothermanduringanhour。Timeiseverything，manisnothing;heis，atthemost，time’scarcase。Qualitynolongermatters。Quantityalonedecideseverything;
hourforhour，dayforday;butthisequalizingoflaborisnotbyanymeanstheworkofM。Proudhon’seternaljustice;itispurelyandsimplyafactofmodernindustry。
Intheautomaticworkshop，oneworker’slaborisscarelydistinguishableinanywayfromanotherworker’slabor：workerscanonlybedistinguishedonefromanotherbythelengthoftimetheytakefortheirwork。Nevertheless，thisquantitativedifferencebecomes，fromacertainpointofview，qualitative，inthatthetimetheytakefortheirworkdependspartlyonpurelymaterialcauses，suchasphysicalconstitution，ageandsex;partlyonpurelynegativemoralcauses，suchaspatience，imperturbability，diligence。Inshort，ifthereisadifferenceofqualityinthelaborofdifferentworkers，itisatmostaqualityofthelastkind，whichisfarfrombeingadistinctivespeciality。Thisiswhatthestateofaffairsinmodernindustryamountstointhelastanalysis。Itisuponthisequality，alreadyrealizedinautomaticlabor，thatM。Proudhonwieldshissmoothing—planeof\"equalization\"，whichhemeanstoestablishuniversallyin\"timetocome\"！
Allthe\"equalitarian\"consequenceswhichM。ProudhondeducesfromRicardo’sdoctrinearebasedonafundamentalerror。Heconfoundsthevalueofcommoditiesmeasuredbythequantityoflaborembodiedinthemwiththevalueofcommoditiesmeasuredby\"thevalueoflabor\"。Ifthesetwowaysofmeasuringthevalueofcommoditieswereequivalent，itcouldbesaidindifferentlythattherelativevalueofanycommodityismeasuredbythequantityoflaborembodiedinit;orthatitismeasuredbythequantityoflaboritcanbuy;oragainthatitismeasuredbythequantityoflaborwhichcanacquireit。Butthisisfarfrombeingso。
Thevalueoflaborcannomoreserveasameasureofvaluethanthevalueofanyothercommodity。Afewexampleswillsufficetoexplainstillbetterwhatwehavejuststated。
Ifaquarterofwheatcosttwodays’laborinsteadofone，itwouldhavetwiceitsoriginalvalue;butitwouldnotsetinoperationdoublethequantityoflabor，becauseitwouldcontainnomorenutritivematterthanbefore。Thusthevalueofthecorn，measuredbythequantityoflaborusedtoproduceit，wouldhavedoubled;butmeasuredeitherbythequantityoflaboritcanbuyorthequantityoflaborwithwhichitcanbebought，itwouldbefarfromhavingdoubled。Ontheotherhand，ifthesamelaborproducedtwiceasmanyclothesasbefore，theirrelativevaluewouldfallbyhalf;but，nevertheless，thisdoublequantityofclothingwouldnottherebybereducedtodisposingoveronlyhalfthequantityoflabor，norcouldthesamelaborcommandthedoublequantityofclothing;
forhalftheclotheswouldstillgoonrenderingtheworkerthesameserviceasbefore。
Thusitisgoingagainsteconomicfactstodeterminetherelativevalueofcommoditiesbythevalueoflabor。Itismovinginaviciouscircle，itistodeterminerelativevaluebyarelativevaluewhichitselfneedstobedetermined。
ItisbeyonddoubtthatM。Proudhonconfusesthetwomeasures，measurebythelabortimeneededfortheproductionofacommodityandmeasurebythevalueofthelabor。\"Anyman’slabor，\"hesays，\"canbuythevalueitrepresents。\"Thus，accordingtohim，acertainquantityoflaborembodiedinaproductisequivalenttotheworker’spayment，thatis，tothevalueoflabor。Itisthesamereasoningthatmakeshimconfusecostofproductionwithwages。
\"Whatarewages？Theyarethecostpriceofcorn，etc。，theintegralpriceofallthings。\"
Letusgostillfurther。
\"Wagesaretheproportionalityoftheelementswhichcomposewealth。\"
Whatarewages？Theyarethevalueoflabor。
AdamSmithtakesasthemeasureofvalue，nowthetimeoflaborneededfortheproductionofacommodity，nowthevalueoflabor。Ricardoexposesthiserrorbyshowingclearlythedisparityofthesetwowaysofmeasuring。
M。ProudhongoesonebetterthanAdamSmithinerrorbyidentifyingthetwothingswhichthelatterhadmerelyputinjuxtaposition。
Itisinordertofindtheproperpropositioninwhichworkersshouldshareintheproducts，or，inotherwords，todeterminetherelativevalueoflabor，thatM。Proudhonseeksameasurefortherelativevalueofcommodities。Tofindoutthemeasurerelativevalueofcommoditieshecanthinkofnothingbetterthantogiveastheequivalentofacertainquantityoflaborthesumtotaloftheproductsithascreated，whichisasgoodassupposingthatthewholeofsocietyconsistsmerelyofworkerswhoreceivetheirownproduceaswages。Inthesecondplace，hetakesforgrantedtheequivalenceoftheworkingdaysofdifferentworkers。Inshort，heseeksthemeasureoftherelativevalueofcommodities。Whatadmirabledialectics！
\"Sayandtheeconomistsafterhimhaveobservedthatlaborbeingitselfsubjecttovaluation，beingacommoditylikeanyothercommodity，itismovinginaviciouscircletotreatitastheprincipleandthedeterminingcauseofvalue。Insodoing，theseeconomists，iftheywillallowmetosayso，showaprodigiouscarelessness。Laborissaidtohavevaluenotasacommodityitself，butinviewofthevalueswhichitissupposedpotentiallytocontain。Thevalueoflaborisafigurativeexpression，ananticipationofthecausefortheeffect。Itisafictionofthesamestampastheproductivityofcapital。Laborproduces，capitalhasvalue……
Byasortofellipsisonespeaksofthevalueoflabor……
Laborlikeliberty……isathingvagueandindeterminatebynature，butdefinedqualitativelybyitsobject，thatistosay，itbecomesarealitybytheproduct。\"
[I61]
\"Butisthereanyneedtodwellonthis？Themomenttheeconomist（readM。Proudhon）changesthenameofthings，verarerumvocabula[thetruenameofthings]，heisimplicitlyconfessinghisimpotenceandproclaiminghimselfnotprivytothecause。\"
（Proudhon，I，188）
WehaveseenthatM。Proudhonmakesthevalueoflaborthe\"determiningcause\"ofthevalueofproductstosuchanextentthatforhimwages，theofficialnameforthe\"valueoflabor\"，formtheintegralpriceofallthings：thatiswhySay’sobjectiontroubleshiM。Inlaborasacommodity，whichisagrimreality，heseesnothingbutagrammaticalellipsis。Thusthewholeofexistingsociety，foundedonlaborasacommodity，ishenceforthfoundedonapoeticlicence，afigurativeexpression。Ifsocietywantsto\"eliminateallthedrawbacks\"thatassailit，well，letiteliminatealltheill—soundingterms，changethelanguage;andtothisendithasonlytoapplytotheAcademyforaneweditionofitsdictionary。Afterallthatwehavejustseen，itiseasyforustounderstandwhyM。Proudhon，inaworkonpoliticaleconomy，hastoenteruponlongdissertationsonetymologyandotherpartsofgrammar。Thusheisstilllearnedlydiscussingtheantiquatedderivationofservusfromservare。Thesephilologicaldissertationshaveadeepmeaning，anesotericmeaning——theyformanessentialpartofM。Proudhon’sargument。
Labor[4]，inasmuchasitisboughtandsold，isacommoditylikeanyothercommodity，andhas，inconsequence，anexchangevalue。Butthevalueoflabor，orlaborasacommodity，producesaslittleasthevalueofwheat，orwheatasacommodity，servesasfood。
Labor\"isworth\"moreorless，accordingtowhetherfoodcommoditiesaremoreorlessdear，whetherthesupplyanddemandofhandsexisttosuchorsuchadegree，etc。，etc。
Laborisnota\"vaguething\";itisalwayssomedefinitelabor，itisneverlaboringeneralthatisboughtandsold。Itisnotonlylaborthatisqualitativelydefinedbytheobject;butalsotheobjectwhichisdeterminedbythespecificqualityoflabor。
Labor，insofarasitisboughtandsold，isitselfacommodity。