I read Capital, and the whole thing just went over my head. I really couldn't understand what he was getting at. Could any comrades help explain the LTV? Thanks! 
I read Capital, and the whole thing just went over my head. I really couldn't understand what he was getting at. Could any comrades help explain the LTV? Thanks!
Would it be sufficient to say that labor that is employed to produce commodities at the social average of costs, quality, the utility of the final product, etc. is what gives commodities their value? That would account for ineffective utilization of labor as you state.
That commodities/services are a consequence of labor applied to capital over time.
And the labor value actualized/squandered is equal to the utility of the commodities/services they produced as a percentage of the maximal utility value they could have produced.
Labor value exists as a function of potential man hours * time * most-efficient-product/service rendered. And that labor value can be realized or lost, depending on whether the laborer is employed efficiently. Thus, the goal of a well-run economy is to maximize the utility output of individuals in order to achieve a long-term improvement in quality of life for the polity.
Hence "from each according to their skill, to each according to their need". Maximize utility of labor inputs. Equitably distribute outputs.