Law of Value Law of value is the basic law of commodity economy, commodity production and commodity exchange. As long as commodity production and commodity exchange exist, there is a law of value. (1) The law of value is the basic law of commodity economy, but it is not the only economic law in commodity economy. There are many economic laws in commodity economy, and the law of value is the basic law. (2) As the basic law of commodity economy, it is objective and independent of human will, just like any other law. 2. The basic content of the law of value (1) The value of a commodity is determined by the socially necessary labor time for producing this commodity. (2) Commodity exchange should be based on value and follow the principle of equivalent exchange. The reasons are as follows: ① In commodity exchange, producers always want to raise prices, while consumers want to. Therefore, in the long-term market exchange, the trend of equivalent exchange will inevitably form. In commodity exchange, if one party always takes advantage and the other party always suffers, then such commodity exchange cannot last. 3. Expression of law of value: The fluctuation of price around value is the expression of law of value. To understand this problem, we should pay attention to three points: (1) Reasons for the inconsistency between price and value: Although price is determined by value (price is the monetary expression of value), it is not only restricted by this factor, but also affected by the relationship between supply and demand. Changes in supply and demand affect prices, making them rise or fall. (2) The reason why the price fluctuates around the value: although the relationship between supply and demand affects the price, its price change will also affect the "supply and demand", so that supply and demand tend to be balanced. As shown in the following figure: (3) Price fluctuation around value is the expression of the law of value: ① Price fluctuation is based on value, not on the infinite rise or fall of value, so it is still value that determines the price. (2) although the price and value of each transaction are not consistent, in a long time, the average price of goods and the value of goods are consistent. 2, the law of value * * * Commodity producers improve production technology, improve management, and increase labor productivity; 3. The law of value urges commodity producers to survive the fittest in the competition. 2. Analysis of key and difficult points (1) Equivalent exchange 1. Equivalence exchange is an important principle of commodity economy. The so-called equivalence means that the commodity values of both parties are equal. 2. Unequal exchange will dampen the enthusiasm of some commodity producers. Only by carrying out equivalent exchange can we safeguard the interests of all kinds of producers and consumers and form an environment of equal competition. Make commodity producers survive the fittest in the competition, thus promoting the rapid and healthy development of commodity economy. 3. After the emergence of currency, commodities and commodities will not be exchanged directly, but must be exchanged through currency: commodity-currency-commodity. Every exchange is a direct exchange of goods and money. The value of a commodity is expressed in money, that is, the price. Therefore, the equivalent exchange between commodities, after the emergence of money, has gradually become the correspondence between price and value. 4. Equivalence exchange is realized dynamically. After the emergence of currency, the exchange between commodities has become the correspondence between price and value in commodity exchange. In real life, due to the two-way restriction of supply and demand, the price fluctuates around the value. From a static point of view, it often happens that prices and values are not completely consistent, and it is also accidental that they are completely consistent. But in the long run, from the perspective of the whole development process of commodity exchange, the part with price higher than value and the part with price lower than value can be offset. Price and value are consistent, and the principle of equivalent exchange is not embodied in every specific business relationship, but in a certain period of time, from the perspective of the business relationship of the whole society, it embodies the principle of equivalent exchange. It should also reflect changes in the relationship between supply and demand. Value is the basis of price, price determines price, and price is the monetary expression of value. In general, the price of a commodity is directly proportional to its own value. Therefore, the price of commodities should reflect the value of commodities. Supply and demand affect prices. When supply exceeds demand, the price will be lower than the value. When the supply of goods exceeds the demand, the price rises, which is higher than the value. Therefore, the price of commodities should reflect the relationship between supply and demand. (2) The function of the law of value is 1, and the first function of the law of value is to adjust the distribution of means of production and labor in various production departments. This is because the law of value requires commodity exchange to implement the principle of equivalent exchange, which is realized through the two-way restriction of price and supply and demand. Therefore, when the demand exceeds the supply, there will be an oversupply, which will lower the price and reduce the output. Here, the law of value is like an invisible baton, directing the flow of means of production and labor. When the supply of a commodity exceeds the demand, the law of value guides the means of production and labor to flow out of the department that produces this commodity; On the contrary, it guides the means of production and labor to flow into the department that produces this commodity. Of course, the spontaneous action of the law of value will also cause great waste of social labor, so it needs the macro-control of the state. Here, the macro-control of socialist countries can be more effective than that of capitalist countries. 2. The second function of the law of value requires the exchange of goods according to the value determined by socially necessary labor time. Whoever improves technical equipment first will have higher labor productivity, and whoever produces goods with less personal labor time than socially necessary labor time will get more profits. Therefore, there must be competition in the same department and industry, which will improve the production tools, improve labor productivity, strengthen management and reduce consumption, thus reducing individual labor time. 3. The third function of the law of value urges commodity producers to survive the fittest in the competition. This is the result of the second function. There is competition in the commodity economy. Because of competition, commodity producers are urged to shorten individual labor time as much as possible and improve labor productivity, which will also promote the survival of the fittest. This is independent of human will. Under the condition of socialism, because the means of production are public, under the condition of private commodity economy, the survival of the fittest will not lead to polarization in China. The survival of the fittest is conducive to the adjustment of industrial structure. It can promote the development of the whole social productive forces and the development of the socialist economy. But for the owners and operators of bankrupt enterprises, it is not a good thing after all, and it will have a great impact on these enterprises and their employees. This requires the efforts of the state, enterprises and workers: as a country, it should govern the country according to law, standardize market behavior and protect the basic rights and interests of laid-off workers; As an enterprise, we must constantly take various measures to improve labor productivity and market competitiveness; As employees, we should constantly strive to improve our own quality.