Surplus value refers to the value created by workers’ labor that exceeds the cost of their labor power and is appropriated by capitalists. Although many thinkers have discussed the concept, it gained prominence through Karl Marx’s philosophy.
Historical Context of Surplus Value
Throughout history, societal progress has been driven by increases in labor productivity. When humans began producing more than what was needed for survival, it led to the creation of states, civilizations, universal beliefs, wars, and economies. If we had only produced enough to survive, there would be no philosophy, art, science, or aesthetics.
However, has producing more than necessary always benefited individuals? The concept of surplus value emerged to answer this question. In a community where the total production is just enough to sustain the population, the labor used to produce these goods is called necessary labor. For example, if a community of 10 people needs 100 kilograms of wheat to survive, the labor used to produce these 100 kilograms is necessary labor. If each person produces 12 kilograms instead of 10, this extra production creates a scenario where one person does not need to work the following month. Thus, nine people produce enough to sustain themselves and one non-working member, creating a class of rulers.
Surplus Value in Historical Examples
History shows many instances where laborers had to work beyond necessary labor. One clear example is the plantation system in Portugal’s African colonies, where slaves worked six days for their masters and one day for their subsistence. The surplus labor of six days generated surplus products for the slave owners, who claimed the benefits of this extra production. Thus, surplus products, as the simplest form of surplus value, were resources over which the laborers had no claim, enriching the capital owners.
Surplus Value in Modern Context
Consider a factory where workers receive fixed wages. The wages paid to the workers are not directly proportional to the value of the products they produce. If a worker’s daily wage is 100 $ but produces goods worth 400 $, the 300 $ difference is surplus value, benefiting the employer. According to surplus value theorists, the wealth of the capitalist comes from exploiting labor rather than their own work.
Types of Surplus Value
Surplus value is divided into two main categories:
- Absolute Surplus Value: This is increased by extending the working day. For example, in a society where the average lifespan is 70 years, having a retirement age of 65 is an example of absolute surplus value. Increasing weekly working hours without corresponding pay increases also falls under this category. For instance, the percentage of people working over 50 hours a week varies across countries: Switzerland (0.4%), Denmark (2.3%), Canada (3.7%), Belgium (4.8%), Greece (6.4%), Chile (9.7%), Israel (15.4%), and Turkey (32.6%).
- Relative Surplus Value: This is increased by enhancing productivity without extending the working day. For example, if a worker’s necessary labor time is reduced from six to four hours due to technological advancements, but the worker still works twelve hours, the surplus labor time increases, enhancing the surplus value for the employer.
Modern Implications
In street interviews, statements like “people don’t want to work” reflect a disregard for the concept of surplus value. For these individuals, the issue is not the surplus value transferred to the capitalist but rather the unemployed not accepting low-wage, long-hour jobs.