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What is surplus-value theory?

The surplus product, and therefore also its money form, surplus-value, is the residual of that new (net) social product (income) which remains after the producing classes have received their compensation (under capitalism: their wages). This ‘deduction’ theory of the ruling classes’ income is thus ipso factor an exploitation theory.

What is Marx's theory of surplus-value?

This means that Marx’s theory of surplus-value is basically a deduction (or residual) theory of the ruling classes’ income. The whole social product (the net national income) is produced in the course of the process of production, exactly as the whole crop is harvested by the peasants.

What is surplus value in Marxism?

The remainder is “surplus labour,” and the value it produces is “surplus value.” To make a profit, Marx argued, the capitalist appropriates this surplus value, thereby exploiting the labourer. surplus value, Marxian economic concept that professed to explain the instability of the capitalist system.

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