A new look at Marx's refutation of Ricardo's refutation of the labor theory of value

Abstract

In this paper, I would like to bring back to light the forgotten critique of Marx to the widely accepted view that Ricardo succeeded in refuting the universal validity of the labor theory of value in "Principles", chapter 1, sections IV and V. By the hand of Marx, I contend that the arguments of Ricardo are unsuccessful. Nothing of what Ricardo says in his "Principles" implies anything for the question as to whether or not value consists in objectified labor. The problem that Ricardo faces in "Principles". chapter I sections IV and V, without being aware of it, is all about the distribution of profit and, consequently, about the distribution of an already created value through a system of competitive money prices, but not a problem about the creation on the nature of value, which are the themes of the labor (and note wages) theory of value.