Surplus product

The magnitude of the surplus product can be estimated in stocks of physical use-values, in money prices, or in labour hours. If it is known: what and how much was produced in a year, what the population structure is, what incomes or earnings were received, how many hours were worked in different occupations, what the normal actual consumption pattern is, then measures of th ...

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Surplus product, Surplus product - Marxian interpretation of the historical origin of the surplus product, Surplus product - Surplus product and socio-economic inequality between people, Surplus product - Surplus product in capitalist society, Surplus product - Measurement of the surplus product, Surplus product - Surplus product and the social valuation of labor, Surplus product - Surplus product and decadence, Surplus product - Criticism

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Surplus product, Surplus product - Marxian interpretation of the historical origin of the surplus product, Surplus product - Surplus product and socio-economic inequality between people, Surplus product - Surplus product in capitalist society, Surplus product - Measurement of the surplus product, Surplus product - Surplus product and the social valuation of labor, Surplus product - Surplus product and decadence, Surplus product - Criticism

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Marxian theory suggests decadence involves a clear waste of a large part of the surplus product from any balanced or nuanced human point of view, and it typically goes together with growing indifference to the wellbeing and fate of other human beings; to survive, people are forced to shut out from their consciousness those horrors which are seemingly beyond their ability to do anything about, anymore. Marx suggests that in this ca ...

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Surplus product, Surplus product - Marxian interpretation of the historical origin of the surplus product, Surplus product - Surplus product and socio-economic inequality between people, Surplus product - Surplus product in capitalist society, Surplus product - Measurement of the surplus product, Surplus product - Surplus product and the social valuation of labor, Surplus product - Surplus product and decadence, Surplus product - Criticism

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The term surplus is used in economics for several related quantities. The consumer surplus is the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay. The producer surplus is the amount that producers benefit by selling at a market price that is higher than they would be willing to sell for. If the government intervenes, using, for example, a tax or a subsidy, then the graph of supply and demand becomes more complicated and will also include ...

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Das Kapital ("Capital") is a very large treatise of political economy written by Karl Marx in German. The book is a critical analysis of capitalism, its economic practices and the theories which economists made about it. As noted by S. S. Prawer in "Karl Marx and World Literature" (1978), it has not only scientific but also important literary merits. Marx bases his work on that of the classical economists like Adam Smith, David Ricardo, John Stuart Mill and even Benjamin Franklin. However, he reworks these authors' ideas ...

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Das Kapital - Online editions

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Value added refers to the additional value created at a particular stage of production or through image and marketing. In modern neoclassical economics, especially in macroeconomics, it refers to the contribution of the factors of production, i.e., land, labor, and capital goods, to raising the value of a product and corresponds to the incomes received by the owners of these factors. The factors of production provide "services" which raise the unit price of a product (X) relative to the cost per unit of interme ...

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Value added - Method of calculation Value added - Example calculation Value added - National Accounts Value added - Marxian interpretation

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Marx distinguished sharply between value and price, in part because of the sharp distinction he draws between the production of surplus-value and the realisation of profit income. Output may be produced containing surplus-value (valorisation), but selling that output (realisation) is not at all an automatic process. Until payment from sales is received, it is uncertain how much of the surplus-value produced will actually be realised as profit from sales. So, the magnitude of profit realised in the fo ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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Both in Das Kapital and in preparatory manuscripts such as the Grundrisse and Results of the immediate process of production, Marx shows how commerce by stages transforms a non-capitalist production process into a capitalist production process, integrating it fully into markets, so that all inputs and outputs become marketed goods or services. When that process is complete, the whole of production has become simultaneously a labor process creating use-values and a valorisation process creating new value, and more specific ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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Generally, Marx focused in Das Kapital on the new surplus-value generated by production, and the distribution of this surplus value. In this way, he aimed to reveal the "origin of the wealth of nations" given a capitalist mode of production. However, in any real economy, a distinction must be drawn between the primary circuit of capital, and the secondary circuits. To some extent, national accounts also do this. The primary circuit refers to the incomes and products generated and distributed from productive activity (reflected by GDP) ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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As stated, operating surplus is a residual item in national accounts of gross product. It is "analogous" to what is "left over" when a business deducts its costs from sales revenue in order to arrive at its profit total. However, the analogy is somewhat deceptive, insofar as the operating surplus in national accounts, as a component of value added, is not truly equal to real generic pre-tax profit receipts. The main reason for that is simply that, in calculating this aggregate, various items are added and deducted from an initial surveyed (or tax-declared) gross profit fig ...

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Operating surplus, Operating surplus - Derivation of operating surplus in UNSNA, Operating surplus - Exclusions, Operating surplus - Mixed income, Operating surplus - The effect of ownership relations on operating surplus in UNSNA, Operating surplus - Criticism of UNSNA concept

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In UNSNA, "implicit (imputed) rents" on land owned by the enterprise and the "implicit (imputed) interest" chargeable on the use of the enterprise's own funds are excluded from operating surplus. Operating surplus also excludes property incomes considered to be unrelated to value-adding production. ...

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Operating surplus, Operating surplus - Derivation of operating surplus in UNSNA, Operating surplus - Exclusions, Operating surplus - Mixed income, Operating surplus - The effect of ownership relations on operating surplus in UNSNA, Operating surplus - Criticism of UNSNA concept

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In neo-Marxist thought, Paul A. Baran for example substitutes the concept of "economic surplus" for Marx's surplus value. In a joint work, Paul Baran and Paul Sweezy define the economic surplus as "the difference between what a society produces and the costs of producing it" (Monopoly Capitalism, New York 1966, p. 9). Piero Sraffa also refers to a "physical surplus" with a similar meaning, calculated according to ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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Surplus-value is not a fixed category but a dialectical, developing one, because the forms in which new value is created and appropriated, and the way the burdens of productive work are shifted between strata of the population, change over time. There is obviously a big difference between simple commodity producers exchanging agricultural surpluses in a village market, and "fast money" in today's global money markets. Historically, Marx argues, surplus-value originated outside production in the first commercial forms of exchang ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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A simple definition of business profit would be "sales less costs", and the accounting derivation of operating surplus is similar. Starting off with Gross Output, expenditure on intermediate goods and services are deducted, to arrive at gross value added. Value added may be stated gross (equal to the net output value, including consumption of fixed capital, i.e. depreciation charges) or net (excluding consumption of fixed capital). The net operating surplus (NOS) is thus the residual balancing item in the product account ...

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Operating surplus, Operating surplus - Derivation of operating surplus in UNSNA, Operating surplus - Exclusions, Operating surplus - Mixed income, Operating surplus - The effect of ownership relations on operating surplus in UNSNA, Operating surplus - Criticism of UNSNA concept

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Total surplus-value in an economy (Marx refers to the mass or volume of surplus-value) is basically equal to the sum of net distributed and undistributed profit, net interest, net rents, net tax and various net receipts associated with royalties, licensing, leasing, certain honorariums etc. (see also value product). However Marx's own discussion focuses mainly on profit, interest and rent, largely ignoring taxation and royalty-type fees which were proportionall ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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The first attempt to measure the rate of surplus-value in money-units was by Marx himself in chapter 9 of Das Kapital, using factory data of a spinning mill supplied by Friedrich Engels (though Marx credits "a Manchester spinner"). Both in published and unpublished manuscripts, Marx examines variables affecting the rate and mass of surplus-value in detail. Some otherwise intelligent Marxist thinkers like Geoffrey Pilling and Ira Gerstein have argued that surplus value "cannot be measured", but that was demonstrably not the view of Mar ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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The size of total operating surplus is in theory not affected by whether the assets used in production are owned or rented by the enterprise, or whether assets owned by the enterprise and used in production are financed out of its own funds (or equity capital) or out of borrowed funds (or loan capital). But if buildings, other structures, machinery or equipment are rented by an enterprise, the payments of rentals under an operating lease or similar lease are recorded as purchases of services (Intermediate consumption). Thus, the payment of a rental on a fixed ...

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Operating surplus, Operating surplus - Derivation of operating surplus in UNSNA, Operating surplus - Exclusions, Operating surplus - Mixed income, Operating surplus - The effect of ownership relations on operating surplus in UNSNA, Operating surplus - Criticism of UNSNA concept

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According to Marx's theory of exploitation, living labour at an adequate level of productivity is able to create and conserve more value than it costs the employer to buy; which is exactly the economic reason why the employer buys it, i.e. to preserve and augment the value of the capital at his command. Thus, the surplus-labour is unpaid labour appropriated by employers in the form of work-time and outputs, on the basis that employers own and supply the means of production worked with. The commercial function of la ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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According to Marx, absolute surplus value is obtained by increasing the amount of time worked per worker in an accounting period. Marx talks mainly about the length of the working day or week, but in modern times the concern is about the number of hours worked per year. In many parts of the world, as productivity rose, the working classes forced a reduction in the workweek, from 60 hours to 50, 40 or 35 hours; but casualisation and flexibilisation of working hours also permits higher paid workers to work less (a fact of concern to statesmen who worry about international competiti ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

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Most Marxist discussions focus on the rate of surplus value, but for businessmen, the growth of the mass of surplus-value, or the profit volume produced (denoted here as P) is just as important, or even more important. The growth of P depends on the growth of the volume of output in an accounting period, and the volume of sales turnover. We can illustrate the point with a simplified example. If: K = total capital invested P = total net profit v ...

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Surplus value, Surplus value - Definition of surplus value, Surplus value - Five interpretations of surplus value, Surplus value - Five measures of the rate of surplus value, Surplus value - Complicating factors in assessing surplus value, Surplus value - Origin of the forms of surplus-value in trade, Surplus value - Appropriation of surplus-value from production, Surplus value - Absolute and relative surplus value, Surplus value - Production versus realisation of surplus-value, Surplus value - The significance of the mass of surplus value, Surplus value - Surplus value and taxation, Surplus value - Surplus value and the circuits of capital, Surplus value - Measurement of surplus value, Surplus value - Different concepts of surplus, Surplus value - Criticism of Marx's concept, Surplus value - The moral and power dimension of surplus value

Read more here: » Surplus value: Encyclopedia II - Surplus value - The significance of the mass of surplus value