This document summarizes John Ruskin's critique of classical economic theories of value, wealth, price, and production. Ruskin redefines these terms, arguing that true value enhances life rather than being determined by market price. He defines wealth as a nation's prosperity rather than stockpiles of goods. Ruskin also argues that labor, not exchange, is the sole source of profit, and that prices should reflect the labor that goes into production rather than being exploitative. The document concludes by stating Ruskin aimed to re-examine these key economic concepts and define them in a way that considers morality and human life rather than just accumulation of capital.

1. In The Name of Allah The Most Merciful
The Beneficent

2. AD VALOREM
QAMAR AFTAB (F18-005-9996)
Riphah International
University Faisalabad

3. Contents
• Introduction of Ad Valorem
• Mill’s Defining Produce
• Value
• Wealth
• Understanding Wealth & Character
• The Nature of price
• The Value of Exchange

4. Introduction
• Ad Valorem is defined as according to the value:
• Which attempts to define the concepts of the value, wealth,
price and production, in terms different than those proposed
by the political economies.
• Ruskin however redefines “value” in a totally different way, So
according to Ruskin “towards batter understanding the value
of things”.
• The most common ad valorem tax examples include property
taxes on real estate, sales tax on consumer goods,

5. Continue
• Value:
• In Ruskin’s term, is that enhance the life or leads the
life; not what something sells for in the market place.
• Wealth:
• He defines wealth, that how much a country is
prosper. He describe that wealth is the prosperity of
a nation.

6. Continue
• Price:
• Ruskin’s discussion of price encompasses exchange
value and labour. No profit can came from exchange.
Labor is discussed as a means to understand
production. Good production comes from good
forms of labor and requires good consumption.

7. J.S Mill’s Defining Produce
• Mill actually uses “productive” in the context of capitalist investment and
means only that productive labour contributes to further production. Mill
does not truly mean that unproductive goods, such as silver plate, and the
unproductive labour that yields unproductive good are without value.
Ruskin, therefore, does not represent Mill accurately here.
• Mill has not defined the real meaning of usefulness. The definition which
he has given “capacity to satisfy a desire, or serve a purpose” applies
equally to the iron and silver. while the true definition which he has not
given,

8. Value
• According to Mill:
• “The word ‘value,’ when used without adjunct, always means,
in political economy, value in exchange”. So that, if two ships
cannot exchange their rudders, their rudders are, in politico-
economic language, of no value to either.
• Ruskin is clearing the way for his definition of value by
attacking the definitions offered by political economists, here
Mill and Ricardo. Underlying Ruskin's complex argument
against Mill is the idea that morality is nothing to do with
political economy.

9. Continue
• Ruskin's economics are deeply imbued with both a moral
imperative and judgements about what makes for good and
bad living.
• Ruskin shows that economists focus too narrowly on wealth
and don't consider how money is put to use. In addition,
Ruskin names the three never-published essays that he
needed to combine into this one because Cornhill Magazine
did not publish his series of essays.

10. David Ricardo’s Political Economy
• Ruskin's objection to Ricardo is that Ricardo's idea of value is
narrow (quantity of labor) and is only loosely connected to
utility. To Ruskin value is equivalent to utility, and both value
and utility are measures of the betterment of human life. Also,
value doesn't vary with demand. It is “independent of opinion
and quantity.”

11. Value Enhance Human Life
• The etymology of “value” is “strength for living.” It is
related to “valor” and “valiant.”
• Value is independent of people’s opinions and of
availability (quantity). Rather it comes from God.

12. Wealth
• Mill says wealth is having a large stock of useful
articles.
• Ruskin defines wealth, that how much a country is
prosper. He describe that wealth is the prosperity of
a nation.

13. The Nature of Price, value
of exchange
• Profit comes only from labor—something is made.
Exchange may be beneficial and necessary but there
is no profit in exchange.
• If labor is necessary to effect the exchange, this labor
can be regarded as profit.

14. Conclusion
• This essay is organized as a examination and redefinition of
the key economic terms value, wealth, and price, and produce
(“production”). As a preliminary, Ruskin shows that Mill's
definition of produce is erroneous. Then value is redefined
that which enhances life, not what something sells for in the
marketplace. Wealth must be understood in regard to the
nature of the goods that are produced, how adequately they
are distributed throughout society, and how well these goods
can be used.

15. Continue
• Ruskin's discussion of price encompasses exchange value and
labor. No profit can come from exchange. It is inherently
exploitive. Labor is discussed as a means to understand
production. Good production comes from good forms of labor
and requires good consumption. Capital should be spent to
achieve good production (which is finally good consumption),
not just the accumulation of more capital.

16. Thanks For Your Attention