For believers in LTV - A thought experiment.

Joe, Bob, and Jeff are bakers.

They start with the same ingredients and each bake a cake for sale.

Joe's cake sells for $20. Bob's cake sells for $10. Jeff's cake doesn't sell and goes bad ($0).

According to the subjective theory of value, Joe generated ($20 - ingredient costs) worth of value. Bob generated ($10 - ingredient costs), and Jeff ($0 - ingredient costs).

  1. How is STV wrong here?

  2. If they had a boss, should the boss pay them equally?

  3. If they worked in a commune, should they be paid equally?

  4. If they worked in a commune, should Joe and Bob kick Jeff out? By what justification? By LTV, he created value. Right?

If you can, answer the actual questions. Responding with a vague general answer on the topic is so boring.