Comment by jmyeet
2 years ago
> "modern mainstream economics ..."
It would be more accurate to say "modern mainstream economists". To say "economics" here is a real failure on Wikipedia's moderation. Because what they're actually talking about, is the Austrian School of Economics [1]:
> The Austrian school is a heterodox[1][2][3] school of economic thought that advocates strict adherence to methodological individualism,
"Individualism" is the key part here because it betrays the intent, which is to disempower people from acting collectively, such as by forming unions. This is a key tenet of classical liberalism so an appeal to authority like "modern mainstream economics" we're really just saying "neoliberalism".
Neoliberalism isn't a neutral account or critique of capitalism. It wholly embraces capitalism as a solution to all problems. Neoliberalism can pretty much be summed up as weaker/smaller government (because it hurts profits) and indivudalism (because collective action hurts profits).
> 10,000 people digging holes should be more "valuable" than one guy designing a microchip
That's an asinine example. I mean what hole are they digging? If it's the Panama Canal, that's pretty valuable. Also, the example of one person designing a chip goes to the heart of the problem that LTV addressses. What does that design do? Well, nothing. It only has value if you make something with it you can sell (or you sell it to someone who does). You want to fab it? Well, TSMC involves a lot of labor. ASML involves a lot of labor. The materials required require a lot of labor.
Plus there's the issue that the chip design itself is intellectual property, which itself is an enclosure (in the capitalist sense).
Everything we as a society is so fundamentally interconnected that it's arbitrary and selective to attribute the value created to a tiny few. And it's done for the gain of the few at the expense of the many.
[1]: https://en.wikipedia.org/wiki/Austrian_school_of_economics
Look. The LTV has been rejected by mainstream economists. And this has nothing to do with Austrian economics (which has also been rejected by mainstream economists, for different reasons.) Now of course, you may choose to disagree, and say they're all wrong! But that's the current academic consensus.
It might be more valuable if they used construction equipment to dig it, rather than shovels. But that would mean acknowledging that "value" is different from "labor cost," which apparently is impossible for you.
Milton Friedman allegedly repeated
“You don’t understand, Mr. Friedman, this canal is a jobs program to provide work for as many men as possible.”
“Oh, I see. I thought you were trying to build a canal. If you really want to create jobs, then by all means give these men spoons, not shovels.”