‘Testing’ the Labor Theory of Value with Metaphysical Alchemy

‘Testing’ the Labor Theory of Value with Metaphysical Alchemy
Fix, Blair. (2026). Review of Capital as Power. Vol. 2. No. 3. March. pp. 53-113. (Article - Journal; English).

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Abstract or Brief Description

Economists have developed a timeworn algorithm for ‘testing’ untestable theories: they take what they can observe, which is usually monetary value, and declare that it measures what they cannot observe. I call this algorithm ‘metaphysical alchemy’. Here, I explore how Marxists use metaphysical alchemy to ‘test’ the labor theory of value. My exposition builds to the work of Anwar Shaikh, who has long argued that input-outut tables can be used to definitely measure ‘labor value’. Expanding on the work of Isabella Sabatino, I demonstrate that Shaikh’s method amounts to a technique for transforming statistical noise. Rather than ‘test’ the labor theory of value, Shaikh’s method measures fascinating features of the distribution of income, but then transforms these features into a metaphysical claim that Marx was correct all along.

Language

English

Publication Type

Article - Journal

Keywords

Anwar Shaikh bookkeeping correlations input-output analysis labor theory of value Marxism metaphysical alchemy metaphysics national accounts

Subject

BN Macro
BN Micro
BN Methodology
BN Money & Finance
BN Production
BN Value & Price
BN Business Enterprise
BN Capital & Accumulation
BN Data & Statistics

Depositing User

Jonathan Nitzan

Date Deposited

20 Mar 2026 16:48

Last Modified

20 Mar 2026 16:48

URL:

https://bnarchives.net/id/eprint/886

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