Prices not a new problem

But starting as a simple commodity, gold only retains its potency because it is still in essence a commodity. As the labour involved in pro­ducing it lessens or grows according to the difficulties of mining or the advance of technology, so the amount of other things which a piece of gold will buy alters correspondingly. Equal labour products ever form the basis of the normal exchange. Gold, then, is the baro­meter of value only because it has value which varies as the labour socially required to produce it varies.

(From “the Secret of Money – And the rise in prices”, SOCIALIST STANDARD, June 1913)

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