ABSTRACT
The distinction between labour bestowed and labour commanded reflects the conflict between the early and the later state of the economy. Labour bestowed on the production of a commodity is a universally applicable concept wherever goods are produced ‘in the sweat of man’s brow’. Labour commanded in exchange cannot be used as a yardstick of value unless exchange relations are established. Ricardo discusses value in exchange and relative prices. Nevertheless, he rejected Adam Smith’s approach of measuring the value of a commodity in terms of the quantity of other goods for which it can be exchanged, and he ended by arriving at an absolute-value concept in labour bestowed in production. Ricardo points out that the amount of labour bestowed on the production of food may rise without the wages of labour, in terms of food, diminishing, to prove that ‘labour bestowed’ and ‘labour commanded’ are not equal.
