surplus value theory

Surplus value theory, developed by Karl Marx, explains how workers create value through their labor that exceeds what they are paid in wages. This additional value, called surplus value, is appropriated by capitalists as profit. Essentially, workers generate more wealth than their compensation corresponds to, and this extra value is the source of profit and capital accumulation. The theory highlights the relationship between labor, profit, and exploitation within a capitalist economy, emphasizing that the value workers produce exceeds their wages because of the unpaid labor they provide beyond their compensation.