"Value is consequently the necessary theoretical starting point whence we can elucidate the peculiar phenomenon of prices resulting from capitalist competition"

In this quote, Rudolf Hilferding highlights the foundational function of value in understanding the phenomenon of costs within a capitalist system. Hilferding, influenced by Marxist financial theory, recommends that value is a main concept for analyzing how prices are identified through capitalist competitors.

The concept of worth, in Marxist terms, often describes the labor theory of value, which posits that the worth of a product can be objectively measured by the typical amount of socially necessary labor time needed to produce it. Hilferding implies that before we can fully grasp how rates fluctuate in a market economy driven by capitalist competition, we must initially understand the underlying value of products as derived from labor.

By mentioning that value is the "essential theoretical beginning point", Hilferding argues that any analysis of market value without first understanding value would be insufficient. Prices can often look like approximate or subject to limitless variables, but by anchoring the analysis in worth, one can trace back the complexity of prices systems to their roots in labor and production procedures.

Furthermore, Hilferding's assertion underscores the idea that capitalist competition is a crucial motorist in the translation of value into price. Competition among capitalists can lead to the adjustment of costs above or below the worth of products, as they strive for market share, profit maximization, or cost effectiveness. This competitive vibrant causes rates to deviate from the basic labor worth of commodities, creating what he describes as "strange phenomena."

In summary, Hilferding's quote is a call to ground financial analysis of prices in the idea of value, specifically when checking out the results of capitalist competition. It recommends that only by comprehending this beginning point can we elucidate the complexities and peculiarities of cost habits in capitalist markets.