Re: The Labor Theory of Money w/ regards to Microeconomics...
That's more accurately described as a labor theory of cost. Value is subjective. Labor has nothing to do with it.
Bingo. Labor theory of value is only useful as a lower bound on cost. And even then, only when "labor" is defined as "thermodynamic work".
Otherwise it is the most totally and completely worthless theory of anything ever to gain widespread acceptance.
Well, I'm sure we can think of worse, but point taken.
. (Flat earth, spontaneous generation, etc.)The Labour Theory of Value is still referred to today, if not by economists, by the common man in mundane speech. I was trying to explain to my wife the other day about where the market price of houses come from. It's easy to think that putting some amount of physical labour into something gives it an "intrinsic" value.