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Theory of value and property

Locke uses the concept of property in both broad and narrow terms: broadly, it covers a wide range of human interests and aspirations; more particularly, it refers to material goods. He argues that property is a natural right that is derived from labour. In Chapter V of his Second Treatise, Locke argues that the individual ownership of goods and property is justified by the labour exerted to produce such goods — "at least where there is enough, and as good, left in common for others" (para. 27) — or to use property to produce goods beneficial to human society.

Locke states in his Second Treatise that nature on its own provides little of value to society, implying that the labour expended in the creation of goods gives them their value. From this premise, understood as a labour theory of value, Locke developed a labour theory of property, whereby ownership of property is created by the application of labour. In addition, he believed that property precedes government and government cannot "dispose of the estates of the subjects arbitrarily". Karl Marx later critiqued Locke's theory of property in his own social theory.