Marxist Critiques of Capitalism: Theory of Surplus Value Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Introduction

Marxist critiques of capitalism challenge each other in many aspects. However, the three critiques are interrelated.

Theory of surplus value

This theory states that surplus value is a factor of surplus production. This theory also encompasses labor. Thus, capitalism exploits the common work force. The surplus production is constantly being created. In fact, workers are willing to put extra effort in performing their daily tasks.

This benefits the owner and stakeholders of the organization. In this process, a modern slavery regime is continuously created.

The comparison of the two brings out the idea of work being done at no cost. This results in extra products that create the surplus value. This is a sign of extra revenue to the owner.

This theory contradicts the common ideology of fair exchange between the capitalists and the work force. This ideology encompasses fairness and justice in conducting business.

This is against the ideology that people will receive wages according to their level performance. This theory offers the best definition of profit.

Theory of value

This theory states that price is a dependent variable and value is an independent variable. The theory also considers price as the best aspect that can be used to value a commodity.

This theory’s principle is based on the theory of supply and demand. It creates an atmosphere that will clearly mimic a pure capitalistic situation.

To demonstrate this theory, it is essential to use figures to quantify the actual change created by the situation. A perfect example of this is the assumption that a working day has six hours. Further, there is an assumption of the value of production that a worker will create by the end of the day.

This will encompass all the activities that are done in one day. In this case, $ 1000.00 will be the value of the production. If the working hours are inflated from 6 hours to 12 hours, the value of production doubles to $ 2000.00.

In this example, surplus labor produces twice as much as the initial production value. This situation creates a new equation that relates the working hours to the new value of price.

N = M * L

Therefore, N is the new value of price. M is the new product production of a worker in one hour and L is the labor hours for one worker in one day.

Commodity fetishism

This theory states that human beings embrace the trends in the market. For instance, they seek to buy or receive wages that prevail in the market. Here, the market creates the relationship between value and price of a good or service.

This is the price of labor and basic goods for human advancement. This behavior turns the people into commodities and governs the way human beings relate to one another in the society. An individual’s self-value is what he or she is worth.

This can also be the amount of monetary compensation payable to the individual for his or her strength or expertise. Thus, job seekers or house buyers tend to rely on the current market situation as the basis for market prices for houses or wages.

Conclusion

This situation makes the people victims of the market and not its benefactors. They have no control over the prices in the environment. Prices are determined by the situation that is created by the forces of the economy.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, July 2). Marxist Critiques of Capitalism: Theory of Surplus Value. https://ivypanda.com/essays/marxist-critiques-of-capitalism/

Work Cited

"Marxist Critiques of Capitalism: Theory of Surplus Value." IvyPanda, 2 July 2019, ivypanda.com/essays/marxist-critiques-of-capitalism/.

References

IvyPanda. (2019) 'Marxist Critiques of Capitalism: Theory of Surplus Value'. 2 July.

References

IvyPanda. 2019. "Marxist Critiques of Capitalism: Theory of Surplus Value." July 2, 2019. https://ivypanda.com/essays/marxist-critiques-of-capitalism/.

1. IvyPanda. "Marxist Critiques of Capitalism: Theory of Surplus Value." July 2, 2019. https://ivypanda.com/essays/marxist-critiques-of-capitalism/.


Bibliography


IvyPanda. "Marxist Critiques of Capitalism: Theory of Surplus Value." July 2, 2019. https://ivypanda.com/essays/marxist-critiques-of-capitalism/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1