Theories of surplus

Theories of surplus explain how additional value or resources are generated beyond what is necessary to produce goods or services. For example, in economics, surplus can refer to surplus value in labor, where workers produce more value than their wages, benefiting capital owners. Alternatively, agricultural surplus occurs when farmers produce more than they need for immediate consumption, enabling trade and economic growth. These theories analyze how surplus supports investment, innovation, and standards of living, emphasizing its essential role in sustaining and expanding economic activity.