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Notes on Surplus Value, the Working Day, and Relative vs Absolute Surplus Value

Capitalist Production: Surplus Value, Working Day, and Relative/Absolute Surplus Value (Notes from Transcript)

  • Context and setup

    • The lecture situates capitalism and Marxist theory as a framework for understanding contemporary capitalist society.
    • Emphasis on the practical, political, and theoretical relevance of surplus value and the working day.
    • The host notes that politics cannot be fully abstracted from social theory; politics matter to Marxist analysis and to understanding how capitalism operates.
    • A key metaphor appears early: capital is described as dead labor (a vampire) that lives by sucking living labor and grows the more it sucks.
    • The discussion uses both descriptive accounts of the working day and political economy to explain the system.

  • The general formula of capital: M-C-M’

    • Capitalists start with money (M) and transform it into a commodity (C) to obtain more money (M’).
    • Narrative description: the initial pot of money belongs to the capitalist; it is used to buy production means and living labor power.
    • Components purchased with the pot of money:
    • Means of production: objects and instruments of labor (raw materials, tools, machines).
    • Living labor power: workers’ time and capacities.
    • Activation of dead labor requires living labor power; without workers, dead labor cannot be activated to create value or to valorize commodities.
    • The production process yields a commodity that can be sold for more money than the input, yielding profit.

  • Labor power as a commodity

    • Labor power is a commodity in capitalist society; the value of labor power is tied to the socially necessary labor time to produce the average daily means of subsistence.
    • The price (wages) is determined by the cost of reproducing the worker and their dependents, i.e., the socially necessary labor time for subsistence.
    • Marx’s focus is on abstract labor at the level of society as a whole, not on wage differentials between individuals or firms.
    • The total wages in a given capitalist society must reproduce the entire class of workers to sustain living labor power.
    • Discussion point: the relationship between the worker and capitalist is mediated by force and political economy, not a simple fair exchange.

  • Surplus value and the working day: necessary vs surplus labor

    • A worked example to illustrate surplus value:
    • Suppose a worker works 9 hours in a day; six of those hours are necessary labor time (enough to produce the value equivalent to subsistence).
    • In six hours, the worker produces $60 of value.
    • The worker’s wage corresponds to the subsistence level for the day; in this model, the wage is $60 for the day.
    • The worker’s productivity results in a total value produced of $90 (9 hours × $10/hour).
    • Surplus value is the portion of value produced beyond what is needed to reproduce the worker—the extra value extracted by the capitalist.
    • Calculation in the given scenario:
    • Value produced in six hours (necessary labor): $60
    • Total value produced in the day (9 hours): $90
    • Wages paid: $60
    • Surplus value: $30
    • Rate of surplus value: ext{RSV} = rac{Ls}{Ln} = rac{3}{6} = 0.50 ext{ or } 50 ext{
      }
      }
    • Key technical terms:
    • Necessary labor time (L_n): time spent by workers producing value equivalent to subsistence.
    • Surplus labor time (L_s): time workers spend producing value in excess of subsistence (for the capitalist).
    • Rate of surplus value (RSV): the ratio of surplus labor time to necessary labor time.

  • Absolute surplus value: extending the working day

    • Absolute surplus value is increased by lengthening the working day while keeping the same necessary labor time.
    • Example extension: from a 9-hour day (6 hours necessary, 3 hours surplus) to a 12-hour day (same 6 hours necessary, 6 hours surplus).
    • Consequences in the example:
    • Wage remains $60 for the day (in the simplified model).
    • Total value produced increases (e.g., from $90 to $120 if the worker still produces value at the same rate).
    • Surplus value increases from $30 to $60.
    • New RSV = rac{6}{6} = 1.00 ext{ or } 100 ext{%}.
    • Limits on the working day:
    • Lower limit: if the working day shrinks to only necessary labor time, there is no surplus value and no profit, threatening capitalist viability.
    • Upper limit: excessive working hours exhaust workers, reduce productive output, or cause death; there are also moral and institutional constraints (intellectual, social, and civilizational factors).
    • Marx notes historical and contemporary examples where the working day has been lengthened; social movements (including state reforms) constrain or push back on these extensions.
    • The discussion links to historical and contemporary phenomena: long hours (e.g., 12–16 hours a day in some contexts) and the role of social and political forces in shaping the length of the workday.
    • The “eight hours for work, eight hours for rest, eight hours for what we will” slogan is highlighted as a historical touchstone for worker organization and reform efforts.

  • The role of politics in surplus value and the working day

    • Marxist theory emphasizes that political and social struggles shape the length of the working day and the distribution of surplus value.
    • The lecturer argues against a simplistic reading of Marx as an economic determinist; instead, the social movements and state interventions matter in determining exploitation and distribution.
    • References to pages (e.g., 381, 416) indicate discussions of the state, reform legislation, and the limits of capitalist expansion.
    • The state and class struggles can rein in or promote the extension of the working day through legal and political means.
    • The claim that Marx’s theory models a competitive, bourgeois economy is nuanced: competition pushes capitalists to adopt new technologies and modes of production, but this diffusion is socially mediated, not isolated to one firm.

  • Relative surplus value: productivity, innovation, and the diffusion of changes

    • Relative surplus value arises from increases in productivity of labor, which reduce the socially necessary labor time for subsistence.
    • Productivity enhancements can come from:
    • New tools and machinery that speed up production.
    • New modes of work organization and cooperation within the workplace.
    • A combination of these factors.
    • Consequence of higher productivity: the value of the commodity produced tends to fall (cost of production per unit falls). Importantly, the value of labor power can fall because reproducing the worker costs less time or fewer resources.
    • In Marx’s framework, the reduction in socially necessary labor time leads to greater surplus value extraction without necessarily shortening the working day.
    • The diffusion mechanism: if one capitalist increases productivity, competitors adopt similar innovations to stay competitive; over time, productivity improvements diffuse across the sector, increasing relative surplus value on a social level.
    • The section emphasizes that the logic of relative surplus value is collective and systemic, not just a one-firm phenomenon.

  • The social and historical dynamics behind relative surplus value

    • Capitalist competition compels investment in productivity, which drives the centralization and concentration of capital (leading toward larger enterprises and industrial organization).
    • The lecture references Volume 3 of Capital and mentions Rudolf Hilferding’s Finance Capital as a later extension addressing monopolies and financialization, which Marx himself did not fully develop in earlier volumes.
    • The diffusion of technology and the push for larger-scale production are linked to the growth of factory-based capitalism and the decline of artisanal, small-scale production.
    • The discussion ties productivity, competition, and social struggle to broader questions of social time, leisure, and potential freedom beyond subsistence work.

  • Clarifications and student questions (key points from Q&A)

    • Question: What exactly increases relative surplus value—reducing necessary labor time, the price of subsistence, or both?
    • Answer: Relative surplus value increases when necessary labor time decreases due to productivity gains, with the day length potentially remaining constant. This means more of the day is surplus labor.
    • Question: How does a single factory’s productivity improvement affect the wider economy?
    • Answer: Through social diffusion and competition, improvements spread across firms and sectors; the effect on the value of subsistence and labor power is a social-level change, not just an isolated firm’s change.
    • Question: Does Marx discuss monopolies or cartels?
    • Answer: In Capital, Marx emphasizes competition, centralization, and the accumulation of capital; monopolies are more extensively analyzed in later Marxian literature (e.g., Hilferding’s Finance Capital). Marx’s framework provides groundwork for understanding monopoly tendencies in capital accumulation, but it is not the primary focus of Volume I.
    • Question: How does the price of consumer goods (like a Coke or a coat) relate to surplus value?
    • Answer: Prices reflect value (socially necessary labor time) but can be influenced by market conditions. Relative surplus value is about reducing necessary labor time through productivity, which lowers the value of labor power and can influence price dynamics in the long run.
    • Question: The example uses a constant wage and changing value through productivity. How does this translate to real-world labor markets?
    • Answer: The simplified model isolates the mechanism by which productivity impacts surplus value and the reproduction cost of labor power; in real markets, wages, prices, and profits are influenced by many factors (institutional rules, bargaining power, and macroeconomic conditions) but the core mechanism remains: productivity changes alter the division of value between necessary labor and surplus labor.

  • Film clip discussion: Chronicle of the Summer ( Renault autoworkers, 1961 )

    • Purpose: to illustrate how the working day and labor processes are lived and experienced by workers.
    • Observations from the clip (as discussed in class):
    • Non-working hours are reorganized to support working hours; even meals often occur at the workstation.
    • The division of labor is highly specialized, making tasks monotonous but efficient within the production system.
    • Reproduction tasks are intertwined with work (e.g., breakfast preparation by family; commuting costs; reading during breaks; continuing education and self-improvement among workers).
    • The documentary highlights unpaid labor and gendered labor in the reproduction of labor power (e.g., breakfasts, lunches prepared by family members).
    • Reading and education at night reflect a culture of self-education and political awareness among workers.
    • The clip shows how the labor process is embedded in social life, and how the moral and intellectual dimensions of workers intersect with their exploitation.
    • Analytical takeaway: The film helps illustrate Marx’s concept of moral obstacles and the social reproduction of labor power, showing how the entropy of daily life and the structure of the workday shape workers’ lived experience and potential political organizing.

  • Morality, civilization, and the political economy of time

    • Moral obstacles to extending the working day include intellectual and social requirements established by civilization and culture.
    • The speaker emphasizes that the length of the working day is not only a technical or economic question but a political one, shaped by collective action and social norms.
    • The idea of “political economy” is present in the note that state reform, labor laws, and social movements determine or constrain the working day.

  • Key terms and formulas to memorize

    • Capitalist formula: M
      ightarrow C
      ightarrow M' (M-C-M')
    • Value of labor power: determined by the socially necessary labor time to produce the average means of subsistence.
    • Necessary labor time: L_n; time spent producing value equivalent to subsistence.
    • Surplus labor time: L_s; time spent producing value beyond subsistence.
    • Total labor day: L = Ln + Ls
    • Rate of surplus value: ext{RSV} = rac{Ls}{Ln}
    • Absolute surplus value: increase in Ls by extending the working day, with Ln held constant (or slowly changing).
    • Relative surplus value: increase in surplus value by reducing L_n$$ via productivity gains, while keeping the day length constant or changing it minimally.
    • Monopoly and competition: not the main focus in early Capital, but central in later Marxist theory (centralization of capital, diffusion of innovations, and the emergence of monopolies as discussed in Volume III and Hilferding).
    • The reproduction of labor power and its social basis includes both paid labor and unpaid labor in family and social networks (e.g., meals, childcare, commuting, and intellectual development).

  • Connections to broader themes and real-world relevance

    • The analysis links production processes to political and ethical concerns: workers’ rights, fair wages, working hours, and the power dynamics between labor and capital.
    • The material basis of exploitation is tied to the social organization of time and value production, not just to individual workplaces.
    • The discussion anticipates later themes in Marx’s work: industrialization, large-scale industry, and the role of competition in driving technological change and capital concentration.
    • The role of culture, education, and self-organization in worker resistance and reform (as shown by the Renault workers and the broader narrative around labor movements).

  • Practical implications and takeaways for exam preparation

    • Be able to explain the general formula of capital (M-C-M’) and how it leads to surplus value via living labor.
    • Distinguish between necessary labor time and surplus labor time and how their ratio defines the rate of surplus value.
    • Differentiate absolute vs relative surplus value, with concrete examples: lengthening the working day vs productivity-driven reductions in subsistence costs.
    • Understand factors that place limits on the working day (physical exhaustion, moral/educational obstacles, and political/legislative constraints).
    • Recognize that productivity growth has a dual effect: it lowers the value of labor power (reproduction cost) and enables more surplus value extraction, contributing to the expansion and centralization of capital.
    • Appreciate the political dimension: workers’ movements and state interventions shape the feasible length of the working day.
    • Be able to discuss how the lived experience of the working day (as shown in the film clip) illustrates the theoretical concepts of surplus value, reproduction of labor power, and the social organization of labor time.

  • Quick reminders for exam-style questions

    • Define and explain surplus value and the rate of surplus value with a worked numeric example.
    • Explain absolute vs relative surplus value and provide a scenario illustrating each.
    • Discuss how productivity growth affects the value of labor power and the implications for the distribution of value.
    • Describe the political and social factors that regulate the length of the working day.
    • Summarize how the film Chronicle of the Summer demonstrates the lived dimensions of the working day and the reproduction of labor power.

  • Key page and reference notes mentioned in the lecture

    • Page 342 (the “capital is dead labor” metaphor is foregrounded here).
    • Page references to sections discussing the state, reform legislation, and the role of politics in labor history (e.g., pages around 381 and 416).
    • Chapter references: The working day and the emergence of absolute surplus value; Relative surplus value in Chapter 12 (productivity, innovation, and social reproduction).

  • Summary takeaway

    • Surplus value arises from the division of the working day into necessary and surplus labor time.
    • Capital seeks to increase surplus value either by extending the day (absolute surplus value) or by boosting productivity to reduce the cost of reproduction (relative surplus value).
    • The rate and extent of surplus value are shaped by competition, technological change, and political struggles, making the length of the working day a political question as much as an economic one.
    • The lived experience of labor (as shown in the Renault film clip) provides concrete illustrations of the theory: reproduction tasks, the division of labor, and the moral and intellectual dimensions of worker life.