The establishment of Marx's labor theory of value has solved the problems that bourgeois classical political economy has not and cannot solve. The bourgeois classical political economy did not understand the value entity itself, and did not understand that the difference of labor quantity was based on its qualitative identity. Of course, it is impossible for them to make a scientific explanation for the decision of value quantity. Because Marx scientifically revealed the problems of value determination, value realization and their relationship, and discussed the law of value from the whole process of commodity economy movement, Marx's labor theory of value was more complete. Commodity production is a historical development process. With the development of productive forces, simple commodity production has developed into capitalist commodity production. According to the development of commodity production, Marx pointed out that the function form of the law of value has also undergone new changes-price and its changes are determined by value, and market price and its changes are determined by production price. In this way, on the basis of the law of value, the relationship between equivalent exchange and the law of average profit is solved, that is, the contradiction that bourgeois classical economics has not solved. Marx criticized the limitations of bourgeois classical political economy and inherited its excellent achievements. On a new basis, he comprehensively and profoundly studied the economic relations of the capitalist system with a brand-new method, expounded the essence of commodity value, value determination and its realization, finally completed the labor theory of value, and revealed the secret of surplus value on this basis. Labor theory of value is the theoretical basis of Marxist political economy and the premise of Marx's whole economic theory: 1 Insists that "living labor is the only source of creating value", broadens the connotation and extension of labor category, and respects knowledge and labor. Man is the leading factor in creating value, and human labor is always in the center, origin and supreme position. As far as connotation is concerned, value-creating labor includes not only physical labor, but also mental labor. Both the labor of hiring workers and the labor paid by private entrepreneurs should be the source of value creation; In extension, it includes not only labor engaged in material production, but also labor engaged in the tertiary industry. Broadening the understanding of the connotation and extension of labor is not only of theoretical significance, but also of great practical significance. The purpose is to emphasize "respect for labor, respect for knowledge, respect for talents and respect for creation", so as to realize "let all the vitality of labor, knowledge, technology, management and capital compete to generate, let all the sources of social wealth fully flow in and benefit the people". 2. Correctly understand and solve the problem of exploitation in the primary stage of socialism in China. Marx believes that it is exploitation to occupy the surplus labor of workers without compensation by virtue of the ownership of the means of production. Therefore, we should be soberly aware that in the primary stage of socialism where various forms of ownership coexist, as long as there is an employment relationship, as long as we admit that we can only realize the distribution of production factors, there will be exploitation. Allowing exploitation does not mean letting exploitation go unchecked. Instead, it is necessary to supervise, standardize and guide according to law, so that exploitation can only exist within the scope prescribed by law, and the exploited part can only be the residual value after legal operation and tax payment according to law. It is not allowed to infringe upon the legitimate rights and interests of employees, the legitimate rights and interests of the state, tax evasion, smuggling and drug trafficking. Even within the statutory time limit, the state should adjust the excessive income according to law. China's current income distribution adjustment policy is to ban illegal income, protect legitimate income, adjust excessive income, and ensure the basic life of low-income people, which has embodied these spirits. Scientifically understand the relationship between value creation and wealth distribution, and further improve the distribution system combining distribution according to work and distribution according to production factors. Wealth distribution is not equal to value distribution, but should be the distribution of use value. Therefore, the view that value distribution is determined by living labor that creates value, that is, the proposition that value creation determines value distribution, cannot be established. Use value, that is, the creation of material wealth, is the result of the interaction of various production factors such as labor, capital and land. Without any of them, the production of wealth is impossible. It is for this reason that the owners of various factors of production, including labor, will get corresponding shares according to their respective contributions. However, it should be noted that due to the different social status of the groups participating in the distribution, there is a difference between the strong groups and the weak groups. Under the condition of "unlimited supply" of manual labor in China, the obvious weakness of hired workers will inevitably have a certain impact on the distribution. Therefore, China should give full consideration to social equity on the basis of giving priority to the efficiency of various factors of production, especially to earnestly safeguard the benefits that workers get by virtue of labor relations. Therefore, if China's income distribution policy wants to achieve the goal of getting rich, it must expand the proportion of middle-income people and raise the income level of low-income people. It is necessary to protect legitimate income according to law, resolutely ban illegal income, vigorously rectify unreasonable income, and adjust excessive income accordingly.