The labor theory of value is a framework that posits the economic worth of a product or service as a direct reflection of the total amount of “socially necessary labor” needed for its creation. This idea emphasizes that the value of goods derives from the labor required to produce them rather than factors such as supply and demand. Rooted in classical political economy, the labor theory of value has been widely discussed and debated by economists, including notable figures like Adam Smith, David Ricardo, and Karl Marx.