Theories of Surplus Value

Theories of Surplus Value, developed by Karl Marx, explain how capitalists profit from labor. According to Marx, workers create more value through their labor than what they are paid in wages. This excess value—termed "surplus value"—is kept by capitalists as profit. This concept highlights the imbalance in the labor-capital relationship, where the worker's contributions generate wealth, but the rewards go primarily to those who own the means of production. Thus, surplus value serves as a foundation for understanding exploitation in capitalist economies and the dynamics of wealth distribution.