surplus value
Definition
- Noun (Economics):
- Economic concept: "surplus value" refers to the difference between the value produced by a worker's labor and the wages they are paid, as theorized in Marxist economics. It represents the profit that capitalists extract from workers' labor beyond the cost of sustaining the worker.
Usage Examples
- (The extra value created by workers beyond their wages.)
- (The profit derived from unpaid labor time.)
Advanced Usage
"Rate of surplus value": a measure of exploitation, calculated as the ratio of surplus value to the wages paid.
- The rate of surplus value increased when workers were forced to work longer hours without a pay rise. (The proportion of unpaid labor grew.)
"Absolute surplus value": surplus value obtained by extending the working day.
- In early industrial capitalism, absolute surplus value was achieved through long shifts. (Profit gained by increasing work hours.)
"Relative surplus value": surplus value obtained by reducing the cost of labor through technological improvements.
- Automation allows for relative surplus value by making each worker more productive. (Profit gained by reducing the value of labor power.)
Variants and Related Words
Surplus (adj/n): an amount exceeding what is needed or used.
- The farm had a surplus of grain this year. (Extra produce beyond consumption.)
Value (n): the regard that something is held to deserve; importance or worth.
- The value of the painting was estimated at one million dollars. (Its monetary worth.)
Synonyms
- Profit: financial gain, especially the difference between the cost of production and the selling price.
- Exploitation: the action of making use of resources unfairly for one's own advantage.
Related Idioms
- Labor theory of value: the economic theory that the value of a good or service is determined by the total amount of socially necessary labor required to produce it.
- Marx's labor theory of value is central to understanding surplus value. (The principle that labor is the source of all economic value.)