Until a century ago
most thinking on economic matters was being done in terms of labour
theories of value. These theories had the merit of presenting larger
economic issues in the perspective of social divisions of labour. About
100 years ago, marginal theory arose, shfting the discussion of
'value' from the sphere of production to the market. Everything - not only
price but income distribution - was explained in terms of impersonal
market forces. Sound familiar?
Over the course of several decades, the marginal theory of value has come to be described- variously- as the self-equilibrating market model; or monetarism, or even neo-classical economics. It is still the dominant market model in play today. The question is, does it work?