Editing Labor theory of value (section)

=== Anarchism ===
{{See also|Anarchist economics|Cost the limit of price}}
[[File:LaborNote.JPG|thumb|left|Sample labor for [[labor note]] for the [[Cincinnati Time Store]]. Scanned from ''Equitable Commerce'' (1846) by [[Josiah Warren]]]]
[[Pierre Joseph Proudhon]]'s [[Mutualism (economic theory)|mutualism]]<ref>{{cite web |quote=Thus, the classical solution of expressing the value of goods and services in terms of man hours, which was developed by the orthodox (political) economists of the time, was adopted by both Proudhon and Marx. |url=http://www.inclusivedemocracy.org/dn/vol6/takis_proudhon.htm |title=Beyond Marx and Proudhon |author-link=Takis Fotopoulos |first=Takis |last=Fotopoulos}}</ref> and [[American individualist anarchists]] such as [[Josiah Warren]], [[Lysander Spooner]] and [[Benjamin Tucker]]<ref>"The most basic difference is that the individualist anarchists rooted their ideas in the labour theory of value while the "anarcho"-capitalists favour mainstream marginalist theory." [http://www.infoshop.org/page/AnarchistFAQSectionG1 An Anarchist FAQ] {{webarchive|url=https://web.archive.org/web/20130315000327/http://www.infoshop.org/page/AnarchistFAQSectionG1 |date=2013-03-15 }}</ref> adopted the labor theory of value of [[classical economics]] and used it to criticize capitalism while favoring a non-capitalist market system.<ref>"Like Proudhon, they desired a (libertarian) socialist system based on the market but without exploitation and which rested on possession rather than capitalist private property."[http://www.infoshop.org/page/AnarchistFAQSectionG1 An Anarchist FAQ] {{webarchive|url=https://web.archive.org/web/20130315000327/http://www.infoshop.org/page/AnarchistFAQSectionG1 |date=2013-03-15 }}</ref>

Warren is widely regarded as the first American [[anarchist]],<ref name="Slate">Palmer, Brian (2010-12-29) [http://www.slate.com/id/2279457/ What do anarchists want from us?], ''[[Slate.com]]''</ref><ref name="Mises">Riggenbach, Jeff (2011-02-25) [https://mises.org/daily/5067/Josiah-Warren-The-First-American-Anarchist Josiah Warren: The First American Anarchist], ''[[Mises Institute]]''</ref> and the four-page weekly paper he edited during 1833, ''The Peaceful Revolutionist'', was the first anarchist periodical published.<ref name="bailie20">William Bailie, {{cite web|url=http://libertarian-labyrinth.org/warren/1stAmAnarch.pdf |title=Archived copy |access-date=2013-06-17 |url-status=dead |archive-url=https://web.archive.org/web/20120204155505/http://libertarian-labyrinth.org/warren/1stAmAnarch.pdf |archive-date=2012-02-04 }} ''Josiah Warren: The First American Anarchist – A Sociological Study'', Boston: Small, Maynard & Co., 1906, p. 20</ref> [[Cost the limit of price]] was a maxim coined by Warren, indicating a ([[linguistic prescription|prescriptive]]) version of the labor theory of value. Warren maintained that the [[Justice|just]] compensation for labor (or for its product) could only be an equivalent amount of labor (or a product embodying an equivalent amount).<ref name="warren1">In ''Equitable Commerce'', Warren writes, "If a priest is required to get a soul out of purgatory, he sets his price according to the value which the relatives set upon his prayers, instead of their cost to the priest. This, again, is cannibalism. The same amount of labor equally disagreeable, with equal wear and tear, performed by his customers, would be a just remuneration</ref> Thus, [[profit (economics)|profit]], [[economic rent|rent]], and [[interest]] were considered unjust economic arrangements.<ref name="mcelroy">Wendy McElroy, "[http://flag.blackened.net/daver/anarchism/mcelroy1.html Individualist Anarchism vs. "Libertarianism" and Anarchocommunism] {{Webarchive|url=https://web.archive.org/web/19980206075653/http://flag.blackened.net/daver/anarchism/mcelroy1.html |date=1998-02-06 }}," in the ''New Libertarian'', issue #12, October, 1984.</ref> In keeping with the tradition of [[Adam Smith]]'s ''[[The Wealth of Nations]]'',<ref>Smith writes: "The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it." Note, also, the sense of "labor" meaning "suffering".</ref> the "cost" of labor is considered to be the [[subjectivity|subjective]] cost; i.e., the amount of suffering involved in it.<ref name="warren1" /> He put his theories to the test by establishing an experimental "labor for labor store" called the [[Cincinnati Time Store]] at the corner of 5th and Elm Streets in what is now downtown Cincinnati, where trade was facilitated by notes backed by a promise to perform labor. "All the goods offered for sale in Warren's store were offered at the same price the merchant himself had paid for them, plus a small surcharge, in the neighborhood of 4 to 7 percent, to cover store overhead."<ref name="Mises" /> The store stayed open for three years; after it closed, Warren could pursue establishing colonies based on Mutualism. These included "[[Utopia, Ohio|Utopia]]" and "[[past and present anarchist communities#Modern Times (1851 to late 1860s)|Modern Times]]". Warren said that [[Stephen Pearl Andrews]]' ''The Science of Society'', published in 1852, was the most lucid and complete exposition of Warren's own theories.<ref>{{cite journal |last1=Madison |first1=Charles A. |title=Anarchism in the United States |journal=Journal of the History of Ideas |date=1945 |volume=6 |issue=1 |pages=46–66 |doi=10.2307/2707055 |jstor=2707055 }}</ref>

Mutualism is an [[economics|economic theory]] and [[anarchist school of thought]] that advocates a society where each person might possess a [[means of production]], either individually or collectively, with trade representing equivalent amounts of labor in the [[free market]].<ref>{{cite web |url=http://www.mutualist.org/ |title=Introduction |publisher=Mutualist.org |access-date=2010-04-29}}</ref> Integral to the scheme was the establishment of a mutual-credit bank that would lend to producers at a minimal interest rate, just high enough to cover administration.<ref>Miller, David. 1987. "Mutualism." The Blackwell Encyclopedia of Political Thought. Blackwell Publishing. p. 11</ref> Mutualism is based on a labor theory of value that holds that when labor or its product is sold, in exchange, it ought to receive goods or services embodying "the amount of labor necessary to produce an article of exactly similar and equal utility".<ref>Tandy, Francis D., 1896, ''[[Voluntary Socialism]]'', chapter 6, paragraph 15.</ref> Mutualism originated from the writings of philosopher [[Pierre-Joseph Proudhon]].

[[Collectivist anarchism]] as defended by [[Mikhail Bakunin]] defended a form of labor theory of value when it advocated a system where "all necessaries for production are owned in common by the labor groups and the free communes&nbsp;... based on the distribution of goods according to the labor contributed".<ref>{{cite web|author=Darby Tillis |url=http://www.infoshop.org/page/AnarchistFAQSectionA3 |title=An Anarchist FAQ |publisher=Infoshop.org |access-date=2010-09-20 |url-status=dead |archive-url=https://web.archive.org/web/20101123103313/http://www.infoshop.org/page/AnarchistFAQSectionA3 |archive-date=2010-11-23 }}</ref>