Does the example of the automobile sector in East Germany in the 80′s disprove the Labour Theory of Value?

During this time, cars produced from many auto firms actually had a lower market value than the raw steel used to make them. That is, adding labour to the inputs actually subtracted value, rather than adding it.

It doesn’t disprove anything because it was not a free market system and prices could be artificially manipulated. In a free market system an auto manufacturer would stop making cars if they could not sell them for more thant the cost of materials, labor, and overhead.

That would have been an interesting time to live in. You could make money by buying a car from the dealership and driving it to the steel mill to sell for scrap. Something tells me it didn’t actually work like that.

Automotive Mechanical Estimating How To make repair estimates

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