Abstract

The objective of this paper is to present a critique of Garegnani’s essays on the Marxian labor theory of value. Garegnani has been seen as one of the main representatives of the neo-ricardian school, which breaks away with Marx’s labor theory of value. According to Garegnani the labor theory has proved to be unable to provide adequate answers to those objectives it poses. This paper is aimed at showing that Garegnani’s position, which reduces the meaning of Marx’s labor theory to a non-circular determination of prices and profit rates, is fallacious. Furthermore, the paper tries to show that the importance of Marx’s theory goes far beyond the role that Garegnani has assigned to it, and that it constitutes, in fact an indispensable tool to understand the laws of motion of the capitalist system.