Karl Marx Surplus Value | Marxist theory of exploitation

Karl Marx Surplus Value | Marxist theory of exploitation Video by Khushdil Khan Kasi @sociologylearners1835

Discover Karl Marx's groundbreaking concept of Surplus Value and Exploitation in this detailed and easy-to-understand video. Learn how Marx explained the relationship between workers and capitalists, the creation of value, and the inequality embedded in the capitalist system. We break down complex ideas like surplus value, alienation, and exploitation in simple terms to help you understand the challenges of our economic system and its impact on society.

If you're curious about income inequality, unfair wages, and the roots of capitalism's issues, this video is for you! Dive into Marx's vision for a fairer world and his critique of the system that shapes our everyday lives.

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[josestelle]

Why are we talking about the the surplus-value theory as if it mattered? This theory, which did not start with Marx, was thoroughly examined and rejectd by Bohm Bawerk (The Exploitation Theory, 1884) as one of the silliest and most specius theries of interest ever produced. In fact, Bawerk is known as the man who defeated Karl Marx. By 1906, Marx's exploitation thoery was dead in Europe among serious economists. It was revived as a r esult of Lenin's October 1917 violent coup against the Russian Revolution of Febraury of that year. The result of its application in Russia, China, Cambodia, and other places has been not only the death of some 140 millio people by firing squad and starvation, but also the impossibility of its application (as Mises, Hayek, Rothbard, andothers have pointed out.) It should be studied because it is false and dangerous, not becasue it matters as science. It ihas all the makings of a religion.

[SimplicioDebbie]

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[rainerlippert]

Marx was also wrong about surplus value: he assumes (in Capital I and Capital III) that surplus value is created through production.
Marx had to come to this conclusion because he believes that value is created through production. Since surplus value is part of value, it must therefore also be created through production.
His incorrect value formula helps him with this:
W = c + v + s
W value of a work product
c constant capital (proportionately per product the costs for supplies, building use, electricity, standard components, in Marx's case also machine use...)
v variable capital (proportionately per product the costs for labor - in Marx only the human labor)
c surplus value per product

But value cannot be created in this way! On the production side of commodity society, there is still no surplus value. Only a buyer on the market can pay for the surplus value!
On the production side, an entrepreneur can only estimate the amount of surplus value that can be demanded. In addition, the surplus value is not added to the costs c + v, but rather it must be added to the replacement of the costs c + v. Even if an angel from heaven were to hand the entrepreneur a sum of money s, that would not be surplus value, because this sum of money would only replace part of the costs c + v.
The value formula must be specified for the production side of commodity society:
W|expected = c|cost factor, replacement expected + c|cost factor, replacement expected + s|expected.
The entrepreneur can only estimate the value that will be created in relation to his product.
He makes this expected value visible to potential buyers as an offer price.

A buyer can be found on the market who will reimburse the entrepreneur for the costs by buying the product, but that is not certain. However, surplus value only arises if the entrepreneur can sell the product so well that the buyer fully reimburses the costs and pays even more. This "more" would then be the surplus value.

This makes it clear that the value is not formed from the production costs c + v, to which an expected surplus value is added. Rather, the value is formed as recognition of expenditure by issuing a value equivalent on the market (at least that is how it can be interpreted for work products).

The value formula must also be specified for the market:
W|real = c|replacing costs + v|replacing costs + s|real paid.

Even in socialism, workers cannot be fully paid for the sale of their labor, because even in socialism, production must be improved, new products must be developed, working conditions must be improved, taxes and duties must be paid, etc. This can only succeed in socialism, too, if companies not only replace used products with the sale of products, but also add as much surplus value as possible.
Even in socialism, workers cannot be fully compensated for the sale of their labor, because even in socialism, production must be improved, new products must be developed, working conditions must be improved, taxes and duties must be paid, etc. This can only succeed in socialism, too, if companies not only get their expenses reimbursed by selling their products, but also get as much surplus value as possible, and this is not distributed to the workers.

What should be determined as fair in terms of the remuneration of workers cannot be derived from the values of the workers and the surplus value achieved for the products, since the creation of value on the market is not purely objective, but is also subjective: Value is a relationship between people, specifically between trading partners. Such a relationship must include objective components, since a relationship goes beyond each of the individuals involved and also affects others. With value, the relationship goes beyond each trading partner and also affects the other person.
The most important objective element of value is the common value that the trading partners agree on for the exchange. This then also has an objective effect between the unity of both trading partners and society (sales contract or invoice, money transfer, transfer of goods, etc.). The common value can be described as intersubjective.
However, value must also include subjective elements, since it is formed and has an effect in the conscious processes of the trading partners.
Important subjective elements of value are the subjective reflections of the common value in the conscious processes of the trading partners. Before the exchange, these are usually of different sizes.
Other important subjective elements are the weighted needs of the exchange partners for the exchange goods (goods and value equivalents), which lead to the exchange and thus also to the creation of value.
In addition, the costs or values of the labor cannot be used to determine what share they have in the creation of value in relation to the products of labor.
For example, it may be that a very complicated (and therefore very expensive) detail of the product receives little attention from buyers on average and they buy it because of other features that could be produced more cheaply.
In addition, the costs of the labor cannot be used to determine the proportions in which buyers recognize the results of human and machine labor with their payment.
Note: According to Marx, only human workers can create value.
But since value is not created through production, as Marx sees it, but is assigned equally to the exchange good and the value equivalent of both exchange partners on the market - I have shown this in several videos, it does not matter for the principle of value creation whether, for example, a person or a machine screws two parts together - in both cases no value is created!

The division of value creation in order to arrive at the shares of individual and different workers can be done proportionally to their values, but whether the buyers see it that way is not certain - as written, the value also includes subjective elements.

Most entrepreneurs have a large share in the value creation that is realized in relation to their products: they have to take care of the functioning of the company, security, taxes and duties, product development, company expansion, partnerships, purchasing of suppliers, electricity, etc.