Even among Marx-friendly economists, the labor theory of value has fallen out of favor. But its technical validity is less important than the core message: workers are exploited because the value they create is undemocratically taken by capitalists. by Ben Burgis Part 3 - G. A. Cohen’s Analysis of Exploitation In his 1989 book History, Labour, and Freedom , socialist philosopher G. A. Cohen points out that while most economists (including many contemporary Marxist economists) reject the labor theory of value, rank-and-file socialists often talk as if the LTV is obviously true. What explains the disconnect? The LTV, as Marx inherited it from Ricardo and sharpened it with his own analytic contributions, may or may not be true, but it certainly isn’t obvious. To begin with, the relationship between value and price that Marx postulated is complicated. A whole series of facts about competition and supply and demand pressures can carry the actual market price of a commodity far away from i