Relevancy of the Theories of Surplus Value by Karl Mark to Labor Economics
– Ram Chandra Rupakheti Karl Marks did not satisfy with society about the labor principle. According to him, the societies are classified into two class: capitalist and labor class or have and haves not. This theory of surplus-value was developed by Karl Marks between 1867. This theory has been taken from the theory of labor value by David Ricardo. According to Karl Marks, Labour is the most important means of production among the means of production i.e., land, labour, capital, and organization. The amount of labour is embodied in a commodity. Labour is employed for producing and processing raw materials. The value of the commodity is determined by the quantity and skill of labor under conditions of social production. Although they are exploited by industrialists for their greed. The value of raw material is enhanced by conversion due to the engagement of labor. Capitalists enjoy the surplus-value or value addition to the cost of production which includes the payment made to factors of production. The labor produces more value than they are paid by the capitalists who grab the surplus as their profit. Competition makes the capitalists bring down the wages of the labor to the minimum necessary for mere subsistence. In another hand, competition makes the capitalists bring down the wages of the labor to the minimum necessary for mere subsistence. the excess of labor time, which the...
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