Marxist Labor Theory

Marxist Labor Theory posits that the value of a product is determined by the amount of socially necessary labor required to produce it. It emphasizes that workers, by applying their effort, create value through their work. However, Marx argued that capitalism allows owners (capitalists) to earn profits by paying workers less than the value they produce, exploiting their labor. This surplus value is the source of profit, leading to economic inequality and class struggle. The theory highlights how labor under capitalism is fundamentally tied to the extraction of value, shaping social and economic relations.