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The Genesis of the Transformation Problem

Cosmopod

NOTE

Marx's Explanation of the Transformation of Prices and Labor Values

Marx's analysis reveals that the transformation between prices and labor values is not straightforward at the level of individual commodities; however, this complexity is conservative and resolves itself when examining larger aggregates. He acknowledges that natural prices can deviate from labor values due to capitalists' claims on surplus value generated by workers, which are proportional to their investments. This leads to a redistribution of surplus value, obscuring the true origin of profit—the labor of humans. The labor theory of value's apparent inconsistencies arise from the intrinsic conflict between workers and capitalists, rooted in the social structures of capitalism.

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