3.2.3: Where is Value Distributed?

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What Creates Value (Liberal)

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What Creates Value (Liberal)

Much of the functional and symbolic value is created by the manufacturer

  • Means that the bean itself has little bearing on what customer wants - creates very little value, as measured by how much someone is willing to pay for it

  • but, many people are willing to pay for chocolate, plus specific candy bars with third party labels

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2

Solutions to increase value of bean from Liberal Perspective

To create a Terroir

Selling the place in which the commodity is produced, enforced through trademarks.

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3

What Creates Value (Marxist)

Labour is what creates value.

  • Value is not a market based expression of social worth (the price of the product)

    • It is the Socially Necessary labour time required to produce the commodity

    • Often in capitalism commodities are produced at less than this value as firms seek to cost minimize

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4

Socially Necessary Labour Time

The time required to produce a commodity.

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5

Solutions to increase value of bean from Marxist Perspective

What is needed to improve the lot of producers is to improve their class power

  • Better land distribution, unions on plantations

  • Need to increase the price that the producer gets

    • a lot of these producers are on very small lands

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