Question

3. Explain the concept of ‘surplus-value’ and how it is extracted through exploitation.

Answer 1

Surplus-value: It is the difference between the money raised through the sale of a product and the amount it cost to the owner of that product to manufacture.
In the economy, workers are paid according to this value and value is the source of all wealth. Value is determined by a good's particular utility for an actor and if the good results from human activity, it must be understood as a product of concrete labor, that defined labor. Capitalists can purchase laborers from the workers, who can only bring their labor power in the market. Once capitalists can pay the worker less than the value produced by their labor, surplus labor forms, and this results in the profits of the capitalist. That is what Marx meant by "surplus value", which he saw as "an exact expression for the degree of exploitation of labor-power by capital, or of the laborer by the capitalist". This profit is used to pay for personal consumption by the capitalist but was most importantly used to accelerate growth and thus promote a greater system of exploitation. The degree of exploitation of labor power is dictated by the surplus-value rate as the proportion between surplus-value or product and necessary value or product. The surplus-value or product is the materialized surplus labor or surplus labor time while the necessary value or product is materialized necessary labor in regard to workers, like the reproduction of labor power. Karl Marx called the rate of surplus-value an "exact expression of the degree of exploitation of labor power by capital".it is the difference between the money raised through the sale of a product and the amount it cost to the owner of that product to manufacture.
In the economy, workers are paid according to this value and value is the source of all wealth. Value is determined by a good's particular utility for an actor and if the good results from human activity, it must be understood as a product of concrete labor, that defined labor. Capitalists can purchase laborers from the workers, who can only bring their labor power in the market. Once capitalists can pay the worker less than the value produced by their labor, surplus labor forms, and this results in the profits of the capitalist. That is what Marx meant by "surplus value", which he saw as "an exact expression for the degree of exploitation of labor-power by capital, or of the laborer by the capitalist". This profit is used to pay for personal consumption by the capitalist but was most importantly used to accelerate growth and thus promote a greater system of exploitation. The degree of exploitation of labor power is dictated by the surplus-value rate as the proportion between surplus-value or product and necessary value or product. The surplus-value or product is the materialized surplus labor or surplus labor time while the necessary value or product is materialized necessary labor in regard to workers, like the reproduction of labor power. Karl Marx called the rate of surplus-value an "exact expression of the degree of exploitation of labor power by capital".