As an Iranian-American ex-Muslim, now a Christian conservative member of the LDS Church, I’ve had the chance to reflect deeply on various economic theories through a lens of faith and personal experience. One such theory, the Labor Theory of Value (LTV), stands out in economic thought and has a significant place in socialist and Marxist ideologies, but it conflicts with my worldview.
What is the Labor Theory of Value?
The Labor Theory of Value posits that the value of a commodity is primarily determined by the labor required to produce it. This theory was foundational to the works of classical economists like Adam Smith and David Ricardo, but it became most famously associated with Karl Marx. Marx argued that value is a product of human labor, and any profits derived from the sale of commodities—what he called "surplus value"—are the result of laborers being paid less than the value they generate. In Marxist thought, this leads to exploitation, as capitalists profit from the work of laborers without contributing equivalent value themselves.
Marx believed that this system would inevitably lead to class conflict between the bourgeoisie (capital owners) and the proletariat (workers) because workers were consistently undervalued and exploited. The LTV underpins his critique of capitalism and his advocacy for a system where laborers collectively own the means of production, eliminating the profit motive and, in his view, exploitation .
My Perspective as a Christian Conservative
From my perspective as a conservative Christian, particularly within the context of LDS teachings, the Labor Theory of Value has several problematic assumptions. First, it overlooks the role of entrepreneurship, innovation, and risk in creating value. Capitalism, which I support, emphasizes not just labor but the contribution of ideas, creativity, and stewardship. This system rewards those who take risks and build enterprises that, in turn, create jobs and opportunities for others.
In the scriptures, we see numerous examples of the importance of stewardship and individual initiative. The parable of the talents (Matthew 25:14-30) teaches that those who wisely manage and grow what they are given—whether resources, opportunities, or talents—are rewarded. This principle is at odds with the Marxist interpretation of the Labor Theory of Value, which would suggest that profit derived from these endeavors is inherently exploitative.
As a Christian and member of the Church of Jesus Christ of Latter-day Saints, I believe in the sanctity of work but also in the moral value of personal responsibility, individual freedom, and the opportunity to create and innovate. Labor has immense dignity, but so does the process of creating businesses, generating wealth, and improving society through free enterprise. Doctrine and Covenants 58:26-28 encourages us to act in our agency and be “anxiously engaged in a good cause,” reflecting the importance of individual initiative and industry .
Capitalism and Moral Freedom
The Labor Theory of Value, when taken to its Marxist conclusion, advocates for a collectivist society in which the state controls production and distribution. As someone who has roots in a nation like Iran, where authoritarian regimes have misused collectivist economic models, I am deeply skeptical of any system that places power in the hands of the state over individual initiative and freedom. Under these systems, freedom of religion and conscience are often suppressed, and I cherish the freedoms I’ve found in America, including the right to practice my faith freely.
Capitalism, while not perfect, aligns more closely with the freedom and moral agency that God has granted us. It allows for the creation of wealth through voluntary exchanges and rewards individuals for their unique contributions—whether through labor, innovation, or capital investment. It recognizes that value isn’t just created by labor but also by entrepreneurial insight, vision, and stewardship of resources. This reflects the divine economy, where agency and accountability are key to our progression in this life and the next .
Conclusion
In summary, while the Labor Theory of Value has its place in historical economic thought, it ultimately falls short of understanding the broader picture of how value is created and exchanged. It places too much emphasis on labor and neglects the importance of entrepreneurship, risk, and individual initiative. As a Christian and conservative, I believe in an economic system that values both work and the freedom to innovate, create, and steward resources for the good of society. Capitalism, when tempered with moral responsibility, is a far better reflection of these values.
Citations:
- Karl Marx, Capital, Volume I.
- Adam Smith, The Wealth of Nations.
- David Ricardo, Principles of Political Economy and Taxation.
- Matthew 25:14-30, The Holy Bible, King James Version.
- Doctrine and Covenants 58:26-28, The Church of Jesus Christ of Latter-day Saints.
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