[Disclaimer: I do not claim or attempt to say anything original here. I'm just trying to think through Marx's theory. I realize this is an area where I've put my foot in my mouth in previous posts, and I'm open to correction.]
Marx’s labor theory of value is often summarized in a dismissive way, as though he thinks that there’s literally some kind of labor-substance that adheres in a commodity, providing it with an objective value. This theory is often set over against a more Austrian-style relativism, where value is determined by desire. As I painstakingly worked my way through the first two sections of Capital in German (in preparation for my summer seminar, which begins tomorrow by the way), it struck me that Marx’s theory is more robust and weird than I had realized. In a way, it charts a path between the supposed “objectivity” of earlier uses of the labor theory of value in political economy and the later “subjectivity” of the Austrian school. And a helpful way to get at that is to think of value as replacement value.