The Economic Value of Creative Mental Labor: Economic Growth and the Labor Theory of Value

This book examines the role of creative mental labor in determining long-term economic growth, production costs, and product pricing. By redefining theories of value-price and growth in relation to creative mental labor, it acknowledges the role of human talent and skill in the creation of new technologies, productions, and productions methods, and highlights the impact this has on supply and demand dynamics. Traditional and neoclassical notions of human capital are challenged to present a new theory of growth that is more aligned with real life economics. This book reevaluates ideas of economic growth by contextualising technological advancement and sustainable long-term economic growth within ideas of creative mental labor and skilled mental labor. It will be of interest to students and researchers working on labour economics. Contents List of Tables Chapter 1: Introduction The Purpose of the Book The Labor of the Laborer Unskilled Laborer vs. Skilled Laborer New Concepts (CML and SML) and a New Paradigm The Sine Qua Non Componant of Long-Term Growth, CML Why is Human Capital (H) Considered Obsolete? The Plan of Study The Concepts of Creativity, Mental Activity, and Mental Objects Appendix “Productive” Factors and “Production” Factors Productive Factors Production Factors Bibliography Chapter 2: The Missing Component in Long-term Growth Theory, CML Introduction Human “capital”? The Purpose Creative Industry or Creative Economy A Vital Component Missing in the Analysis Introducing “Creative” Mental Labor, CML “CML” Differs from the “SML” Final Remarks Chapter 3: Long-Term Economic Growth Introduction The Purpose New Products and New Methods of Production New Products The Genesis of Growth A Simple “Alternative” Growth Model Based on CML Initial Case A Simple Output, Exchange, and Distribution Model A Simple “Short & Medium”-Term Growth Model A Given Product but a New Production Method Assuming Access to a “New” (Additional) Market A Simple “Long-Run” Growth Model: “New” Product “New Markets” for the “New Product” Lessons to Be Drawn from the Simple Growth Models On Short- and Medium-Term Growth in Actual Markets Conclusions Appendix Different Types of Technological Changes Bibliography Chapter 4: Productivity Increase = Economic Growth Introduction A Brief Historical Perspective The Purpose On Technology On Productivity Productivity Increase (= Economic Growth) Efficiency Increase and Technological Increase Selected Types of Efficiency Increase Technological Productivity Increase On A Value–Price Theory Based on Productivity Concluding Remarks Appendix Technological Productivity Increase (Growth) New Product New Product, “Monopoly,” and Profit Rate Bibliography Chapter 5: Productivity Increase (Growth) in the Service Sector Introduction The Difference between a Commodity and a Service The Growing Significance of the Service Sector International Trade in the Services Sector Productivity Analysis in the Services Sector “Productivity Increase” in the Services Sector How to Measure Productivity? How to Measure Productivity Increase? Quality and Productivity Concluding Remarks Bibliography Chapter 6: Firms that “Only Produce Technologies” and Global Growth Introduction A Way Out GESITS: Firms that “Only Produce Technology” Concluding Remarks Appendix 1 Global Value Chains (GVCs) Appendix 2 Comparison of Profitability Bibliography Chapter 7: The Plunder of SML and Growth in LDCs Introduction Cost of Enhancing Skills in LDCs The Migration Problem Draining Highly Skilled Brains Positive Aspects of Brain Drain Negative Aspects of Brain Drain What Should be Done or What Can Be Done? Conclusions Appendix Brain Drain Bibliography Final Remarks Bibliography Index