Surplus-value - Definition and Overview

Surplus value, according to Marxism, is unpaid labour that is extracted from the worker by the capitalist, and serves as the basis for capitalist accumulation. It is the labour that workers perform for their capitalist employers beyond what is necessary to produce enough to pay for their wages. Surplus value is a concept inextricably tied to Marx's labour theory of value, and is central to his account of exploitation under capitalism.

According to Marx, absolute surplus value is extracted simply by the lengthening of the working day (i.e. 'surplus labour time'), whereas relative surplus value is extracted by either: a. The lowering of wages — this can only go to a certain point, because if wages fall bellow the ability of workers to purchase their means of subsistence, they will be unable to reproduce themselves and the capitalists will not be able to find sufficient labor power. b. Or by lowering the value of the means of subsistence — this requires higher productivity with respect to producing the means of subsistence, instruments of production and raw materials (i.e. lowering 'necessary labour time'). The extraction of Surplus-value from workers by capitalists, both individual and corporations, is manifested in and is acquired through the form of profits, interest and rent.

Total value produced = total labour performed = paid labour (the value of labour-power: variable capital) <math>plus<math> unpaid labour. Thus, surplus-value = total value produced <math>minus<math> paid labour.

See also:

• Labour theory of value
• Das Kapital

References:

• Theories of Surplus-Value (1863) (http://www.marxists.org/archive/marx/works/1863/theories-surplus-value/)

• Value, Price and Profit (1865) (http://www.marxists.org/archive/marx/works/1865/value-price-profit/index.htm)

• Capital, Volume 1 (http://www.marxists.org/archive/marx/works/1867-c1/index.htm), Volume 2 (http://www.marxists.org/archive/marx/works/1885-c2/index.htm), Volume 3 (http://www.marxists.org/archive/marx/works/1894-c3/index.htm)