Thomas Hodgskin (1787-1869) well understood this. He deserves to be better known than he is. Hodgskin was an early editor of The Economist and an important influence on Herbert Spencer, who also worked at that publication. Hodgskin is something of a puzzle for many people. He is often described as a Ricardian socialist, but in his case the label is misleading. Having lived before the marginal revolution, in which Carl Menger, founder of the Austrian school, and other economists provided an alternative to the Adam Smith/David Ricardo labor theory of value, Hodgskin did regard labor, rather than utility, as the source of economic value. [UPDATE: There are indications in Hodgskin's writings that he regarded utility as a fundamental economic phenomenon. He writes in Labour Defended against the Claims of Capital: "But it is quite plain that the sum the weaver will be disposed to give for the thread will depend on his view of its utility." Nevertheless, he thought that what people found useful had to be created by labor.]
But calling him a socialist is bound to confuse. He was indeed a critic of “capitalism,” by which he and others back then meant government intervention on behalf of capital to the prejudice of labor. But he was no advocate of state control of the means of production. On the contrary, he was a influenced by the radical market economist J. B. Say and believed violations of laissez faire, such as tariffs, are what exploited workers by depriving them of their full, market-derived product. Only in a fully free and openly competitive environment void of privilege (“Middle English, from Old French, from Latin, a law affecting one person“) could laborers achieve justice. (Hodgskin developed his sympathy for labor while in the navy, where he observed the cruelty toward sailors. He himself was disciplined and eventually court-martialed and discharged.) As David Hart and Walter Grinder (pdf) write, “The radical individualist Thomas Hodgskin … gives a clear example of the application of the libertarian nonaggression principle to the acquisition and exchange of property. He also implies that those who benefit from ‘artificial’ property rights, that is, by force and state privilege, comprise a class antagonistic to the producing class.”