Humbug Labor Values

Humbug Labor Values
Sabatino, Isabella K. (2026). Review of Capital as Power. Vol. 2. No. 3. March. pp. 1-52. (Article - Journal; English).

Full Text Available As:

Preview	Cover Image 20260300_sabatino_humbug_labor_values_front.jpg Download (123kB) | Preview
Preview	PDF 20260300_sabatino_humbug_labor_values.pdf Download (3MB) | Preview
Preview	PDF (CASP Essay Prize announcement) 20260314_recasp_editors_isabella_k_sabatino_wins_the_2026_casp_essay_prize.pdf Download (285kB) | Preview
	Other (Individual figures -- virus free) sabatino_figs.zip Download (3MB)

Alternative Locations

https://capitalaspower.com/2026/03/sabatino-humbug-labor-values/

Abstract or Brief Description

*** Winner of the 2026 CASP Essay Prize ***

In 1974, Anwar Shaikh published a landmark paper demonstrating that the Cobb-Douglas production function was in fact an accounting identity. As such, under fairly general conditions, the function would appear to ‘work’, even for nonsense data that spelled the word ‘HUMBUG’. In this paper, I argue that Shaikh’s own research is subject to a similar critique. In his book 'Capitalism: Competition, Conflict, Crises', Shaikh uses US input-output data to find what he deems strong evidence for the labor theory of value. However, I demonstrate that Shaikh’s method amounts to a manipulation of national accounting identities. As such, his method delivers a high degree of correlation between labor values and monetary value (sectoral gross sales) for a wide range of random data, including an input-output table which spells ‘HUMBUG’.

Language

English

Publication Type

Article - Journal

Keywords

Anwar Shaikh circular algebra input-output analysis labor theory of value labor values tautology

Subject

BN Methodology
BN Production
BN Value & Price
BN Capital & Accumulation
BN Data & Statistics

Depositing User

Jonathan Nitzan

Date Deposited

11 Mar 2026 22:26

Last Modified

14 Mar 2026 20:05

URL:

https://bnarchives.net/id/eprint/884

Actions (login required)

View Item