The Labour Theory of Value

The labour theory of value assigns the economic value of a good or service based off how much labour is required to produce it. Most interpretations of this theory also note that not all labour is equal. The way that labour does become more valuable is through education and this is pretty clear to see in the world around us. Economies with low literacy rates where most of the workforce are simple labourers or farmers are almost exclusively low income countries despite any natural resource advantages. Countries that have basic schooling which enable their people to work in value-add manufacturing or simple services will always do better. Finally advanced economies normally become advanced because they give their people the education and resources they need to develop world-class products