Introducing the Problem-Solving Theory of Value

What makes something valuable? How do we determine value? One hypothesis on value is famously forwarded and relied upon by the Marxists. It is called the "Labor Theory of Value," and it insists that labor is what transforms raw materials into something "humanized" and therefore of value. Therefore, in this theory, labor is what makes something valuable. Of course, this theory has not proved to be adequate for economic purposes, which is just another part of why Marxism is an abject failure even as an economic doctrine (aside from everything else). The question, however, remains. In this fun episode of the New Discourses Podcast, host James Lindsay takes a casual stab at a different answer: a problem-solving theory of value. This would be the idea that value is determined in relation to a good, commodity, or service's capacity to solve problems for people, particularly their consumers. Join him on this exploration to think about some things in a new, different way.