of making predictions, and in setting up criteria for the mean-
ingfulness of terms. It is then possible to examine the basic theo-
retical variable of Marx's political economy -- value. We examine
its credentials, so to speak, in Chapter II. Insofar as it depends
on the dialectical materialism rather than empirical evidence we
can safely dismiss it. But we must carefully consider the pos-
sibility that there are scientific grounds for the labor theory of
value.

The possibility remains that Marx's exploitation theory based
on the labor theory of value might still be acceptable and might
be justified on grounds logically independent of dialectical ma-
terialism. Marx thought that this was the case and that he had
shown how exploitation occurred under capitalism. I seek to
prove that unless Marx makes unwarranted and unduly restric-
tive assumptions, he cannot hold to a materialistic labor value.
He must inevitably be pushed in the direction of multiple factor,
subjective cost theories. In the end Marx must rely on subjective
demand schedules in order to explain the facts of exchange of
commodities. Since the labor theory of value cannot be inde-
pendently established, Marx cannot use labor value as a verifica-
tion of his system of dialectical deductions.

In Chapter III we examine Marx's application of the value
theory to the wage bargain. We see that he becomes further com-
mitted to subjective considerations. Further, his conclusions are
shown to be in contradiction with the facts of continued existence
of profit and the apparent decreasing misery of the proletariat.
Marx interprets this as a contradiction within capitalism itself
rather than in his system and goes on to develop a theory of
progressively worsening business cycles. We must follow him
here and demonstrate how this theory depends on his meta-
physical value theory. Particularly in this field there are valuable
hints taken up by later economists; but the prediction of the
economic breakup of capitalism in a violent depression or secular
stagnation or both is not substantiated.

In the final chapter we examine post-Marxist economics. One

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