Rate of Exploitation

Karl Marx Peace

In Capital Volume I, Karl Marx (1818-1883 CE) stated that:

Since, on the one hand the variable capital and the labour-power purchased by that capitalist are equal in value, and the value of this labour-power determines the necessary part of the working day; and since, on the other hand, the surplus-value is determined by the surplus part of the working day, it follows that surplus-value is in the same ratio to variable capital as surplus labour is to necessary labour…

The rate of surplus-value is therefore an exact expression for the degree of exploitation of labour-power by capital, or of the worker by the capitalist. (Marx, 326)

Constant capital is capital that is constant throughout the labor process; all of the previous labor incorporated into the parts of production (money spent on gears and metal which a previous manufacturer had to spend money on in wages and other constant capital, etc.).

Variable capital is the value inputted into the labor process by the worker, or the value of the worker being interjected into the products she or he creates, makes, gathers, etc (value created by humans).

Surplus value is simply value created by the worker that gives the capitalist his or her profit.

Basically, Marx is showing us that profit comes from the workers and not from commodities or machines or capitalists.  Which is why capitalists get upset about strikes, as the workers are withholding their surplus value and surplus labor from the capitalist, causing a fall in profit during the period of the strike.

Source

Marx, Karl.  Capital: A Critique of Political Economy: Volume 1.  Translated by Ben Fowkes.  New York: Penguin Classics, 1990.

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