Labour Theory of Value

In Marxist political economy, there is a concept called Labour Theory of Value (LVT). LVT argues that the value of a product, or commodity, originates in the amount of labour time, skill level and intensity of labour required in order to produce it. So it is not supply and demand that determines value, nor necessarily some mystical quality (‘commodity fetish’) in the good but the labour required to obtain or produce it.  This value is abstracted on the basis of the average amount of labour time, skill and intensity required to produce a given quantity of a product, which informs the base price in an economy where the dominant mode of production is the production of commodities (which are goods made to be exchanged). This is called Socially Necessary Labour Time and is the value and forms the basis for the price.  It also doesn’t matter if lets say it takes you 20 hours to produce a pair of leather shoes if the typical labour time required to produce a similar type of shoe at similar quality and quantity  is 10 hours, the base price that you will be able to successfully sell it on the market for is that of one made in 10 hours. If you can produce a commodity or product faster than the socially necessary labour time of your competitors, then your options as a business are to sell it for cheaper to undercut the competition or to sell it at the standard price and potentially make super profits. Price in a market economy is therefore determined firstly by the socially necessary labour time and supply and demand are variables that alter the price (but not the value).  The idea of socially necessary labour time also preempts and contradicts arguments against LVT, like the proposal that someone who spends 10 hours pointlessly spit shining a boat should be able to charge more because they spent more time working on it than competitors.