Rate of exploitation

In Marxian economics, the rate of exploitation is the ratio of the total amount of unpaid labor done (surplus-value) to the total amount of wages paid (the value of labour power). The rate of exploitation is often also called the rate of surplus-value.[1]

Divergence of the two rates

Marx did not regard the rate of surplus value and the rate of exploitation as necessarily identical, insofar as there was a divergence between surplus value realised and surplus value produced. Thus, the quantity of surplus labour performed by workers in an enterprise might correspond to a value higher or lower than the surplus value actually realised as profit income upon sales of output. The implication is that if the gross profit volume was related to wage costs to establish the rate of surplus value, this might overstate or understate the real rate of labor-exploitation. Although this is a subtle point, it has sometimes played an important role in wage bargaining negotiations by trade unions. For an extreme example, workers might work extremely hard in an enterprise which nevertheless operates at a loss. For another extreme example, workers might work less hard, knowing that their product will sell like hotcakes in a sellers market at sharply inflated prices, yielding profits disproportionate to labour input. The divergence between surplus value realised and surplus value produced becomes even more marked if surplus value is viewed in terms of the net incomes of social classes, i.e. net labor income and net property income.[2] Marx identified five different formulae for the rate of surplus value (see surplus value).[3]

See also

References

  1. ^ Marx, Karl (1867). "The Degree of Exploitation of Labour-Power". Capital. Volume I, Chapter 9, Section 1. Retrieved 2 June 2019.
  2. ^ Marx, Karl (1867). "The Rate of Surplus-Value". Capital. Volume I, Chapter 9. Retrieved 2 June 2019.
  3. ^ Marx, Karl (1867). "Various Formula for the Rate of Surplus-Value". Capital. Volume I, Chapter 18. Retrieved 2 June 2019.
Capitalist mode of production (Marxist theory)

In Karl Marx's critique of political economy and subsequent Marxian analyses, the capitalist mode of production refers to the systems of organizing production and distribution within capitalist societies. Private money-making in various forms (renting, banking, merchant trade, production for profit and so on) preceded the development of the capitalist mode of production as such. The capitalist mode of production proper, based on wage-labour and private ownership of the means of production and on industrial technology, began to grow rapidly in Western Europe from the Industrial Revolution, later extending to most of the world.The capitalist mode of production is characterized by private ownership of the means of production, extraction of surplus value by the owning class for the purpose of capital accumulation, wage-based labour and—at least as far as commodities are concerned—being market-based.

Crisis theory

Crisis theory, concerning the causes and consequences of the tendency for the rate of profit to fall in a capitalist system, is now generally associated with Marxist economics.

Earlier analysis by Jean Charles Léonard de Sismondi provided the first suggestions of the systemic roots of Crisis. "The distinctive feature of Sismondi's analysis is that it is geared to an explicit dynamic model in the modern sense of this phrase ... Sismondi's great merit is that he used, systematically and explicitly, a schema of periods, that is, that he was the first to practice the particular method of dynamics that is called period analysis". Marx praised and built on Sismondi's theoretical insights. Rosa Luxemburg and Henryk Grossman both drew attention to Sismondi's work, on the nature of capitalism, and as a reference point for Karl Marx, Grossman in particular pointed out how Sismondi had contributed to the development of a series of Marx's concepts including crises as a necessary feature of capitalism, arising from its contradictions between forces and relations of production, use and exchange value, production and consumption, capital and wage labor. His "inkling ... that the bourgeois forms are only transitory" was also distinctive.John Stuart Mill in his Of the Tendency of Profits to a Minimum which forms Chapter III of Book IV of his Principles of Political Economy and Chapter V, Consequences of the Tendency of Profits to a Minimum, provides a conspectus of the then accepted understanding of a number of the key elements, after David Ricardo, but without Karl Marx's theoretical working out of the theory that Frederick Engels posthumously published in Capital, Volume III.

Marx's crisis theory was only partially understood even among leading Marxists at the beginning of the twentieth-century. His notes, 'Books of Crisis' [Notebooks B84, B88 and B91] remain unpublished and have seldom been referred to. A relatively small group including Rosa Luxemburg and Lenin attempted to defend the revolutionary implications of the theory, while others, first Eduard Bernstein and then Rudolf Hilferding, argued against its continued applicability, and thereby founded one of the mainstreams of revision of the interpretation of Marx's ideas after Marx.Although Henry Hyndman attempted to present, popularise and defend Marx's theory of crisis in lectures delivered in 1893 and 1894 and published in 1896, it was Henryk Grossman in 1929 who later most successfully rescued Marx's theoretical presentation ... 'he was the first Marxist to systematically explore the tendency for the organic composition of capital to rise and hence for the rate of profit to fall as a fundamental feature of Marx's explanation of economic crises in Capital.' Apparently entirely independently Samezō Kuruma was also in 1929 drawing attention to the decisive importance in Marx's writings and made the explicit connection between Crisis theory and the theory of imperialism.Following the extensive setbacks to independent working class politics, the widespread destruction both of people, property and capital value, the 1930s and '40s saw attempts to reformulate Marx's analysis with less revolutionary consequences, for example in Joseph Schumpeter's concept of creative destruction. and his presentation of Marx's crisis theory as a prefiguration of aspects of what Schumpeter, and others, championed as merely a theory of business cycles. "... more than any other economist [Marx] identified cycles with the process of production and operation of additional plant and equipment"A survey of the competing theories of crisis in the different strands of political economy and economics was provided by Anwar Shaikh in 1978. and by Ernest Mandel in his 'Introduction' to the Penguin edition of Marx's Capital Volume III particularly in the section 'marxist theories of crisis'(p.38 et seq) where Mandel says more about the theoretical confusion on this question at that time, even among thoughtful and influential marxists, than an excursus or introduction to Marx's crisis theory.There have been attempts particularly in periods of capitalist growth and expansion, most notably in the long Post-War Boom to both explain the phenomenon and to argue that Marx's strong statements of its 'law like' fundamental character under capitalism have been overcome in practice, in theory or both. As a result, there have been persistent challenges to this aspect of Marx's theoretical achievement and reputation. Keynesian's argue that a "crisis" may refer to an especially sharp bust cycle of the regular boom and bust pattern of "chaotic" capitalist development, which, if no countervailing action is taken, could continue to develop into a recession or depression.It continues to be argued in terms of historical materialism theory, that such crises will repeat until objective and subjective factors combine to precipitate the transition to the new mode of production either by sudden collapse in a final crisis or gradual erosion of the basing on competition and the emerging dominance of cooperation.

Exchange value

In political economy and especially Marxian economics, exchange value (German: Tauschwert) refers to one of four major attributes of a commodity, i.e., an item or service produced for, and sold on the market. The other three aspects are use value, economic value, and price. Thus, a commodity has:

a value (note the link is to a non-Marxian definition of value);

a use value (or utility);

an exchange value;

a price (it could be an actual selling price or an imputed ideal price).These four concepts have a very long history in human thought, from Aristotle to David Ricardo, becoming ever more clearly distinguished as the development of commercial trade progressed but have largely disappeared as four distinct concepts in modern economics. This entry focuses on Marx's summation of the results of economic thought about exchange-value.

Exploitation of labour

Exploitation of labour (or labor) is the act of treating one's workers unfairly for one's own benefit. It is a social relationship based on an asymmetry in a power relationship between workers and their employers. When speaking about exploitation, there is a direct affiliation with consumption in social theory and traditionally this would label exploitation as unfairly taking advantage of another person because of his or her inferior position, giving the exploiter the power.

Karl Marx, who is considered the most classical and influential theorist of exploitation, did not share the same traditional account of exploitation. Marx's theory explicitly rejects the moral framing characteristic of the notion of exploitation and restricts the concept to the field of labour relations. In analyzing exploitation, many political economists are often stuck between the explanation of the exploitation of labour given by Marx and Adam Smith. .labours are exploited to the possible extent.

Future of Marine Animal Populations

The Future of Marine Animal Populations (FMAP) project was one of the core projects of the international Census of Marine Life (2000–2010). FMAP's mission was to describe and synthesize globally changing patterns of species abundance, distribution, and diversity, and to model the effects of fishing, climate change and other key variables on those patterns. This work was done across ocean realms and with an emphasis on understanding past changes and predicting future scenarios.

Index of modern philosophy articles

This is a list of articles in modern philosophy.

1649 in philosophy

1658 in philosophy

17th century philosophy

A Few Words on Non-Intervention

A General View of Positivism

A Letter Concerning Toleration

A Philosophical Enquiry into the Origin of Our Ideas of the Sublime and Beautiful

A System of Logic

A Treatise Concerning the Principles of Human Knowledge

A Vindication of Natural Society

Adam Müller

Adam Smith

Adam Weishaupt

Age of Enlightenment

Alexander Gottlieb Baumgarten

Alexander Pfänder

Aloys Hirt

American Enlightenment

An Enquiry Concerning the Principles of Morals

Anarchism

Anarchism and anarcho-capitalism

Anarchism in Korea

Anarchism in Russia

Anarchism in Spain

Anarchism in Sweden

Anarchism in the United States

Anarchism in Turkey

Anarchism in Ukraine

Anarchism in Vietnam

Anarchism: A Documentary History of Libertarian Ideas

Anarchist Manifesto

Anarchy

Anioł Dowgird

Answering the Question: What Is Enlightenment?

Anthony Ashley-Cooper, 3rd Earl of Shaftesbury

Anti-statism

Antoine Arnauld

Anton Kržan

Arnold Geulincx

Arnold Toynbee

Art manifesto

Arthur Schopenhauer

Arthur Schopenhauer's aesthetics

Auberon Herbert

Auguste Comte

Augustus De Morgan

Autonomism

Baroque

Benjamin Constant

Bernard Bolzano

Bête machine

Beyond Good and Evil

Black Panther Party

Blaise Pascal

Borden Parker Bowne

Bourgeoisie

Bronisław Trentowski

Cartesian doubt

Charles Batteux

Charles de Secondat, baron de Montesquieu

Charles Fourier

Charles Graves (bishop)

Charles Sanders Peirce

Chemism

Christian Discourses

Christoph von Sigwart

Class consciousness

Classical Realism

Classicism

Cloudesley

Commodity fetishism

Communism

Concluding Unscientific Postscript to Philosophical Fragments

Cornelis Willem Opzoomer

Criticisms of electoralism

Critique of Judgement

Critique of Practical Reason

Critique of Pure Reason

Cultural hegemony

Dai Zhen

Daniel-Henry Kahnweiler

David Hume

David Ricardo

David Strauss

Dharmarāja Adhvarin

Diafotismos

Dialectical materialism

Die Anarchisten

Direct action

Disquisitions relating to Matter and Spirit

Edifying Discourses in Diverse Spirits

Edward Abramowski

Edward Dembowski

Egoist anarchism

Either/Or

Émile Pouget

Ernst Mach

Ernst Schröder

Fear and Trembling

Feliks Jaroński

For Self-Examination

Francesco Saverio Merlino

Francis Bacon

Francis Hutcheson (philosopher)

Franciszek Krupiński

Friedrich Daniel Ernst Schleiermacher

Friedrich Engels

Friedrich Groos

Friedrich Nietzsche

Friedrich Schiller

Friedrich Theodor Vischer

Friedrich Wilhelm Joseph Schelling

General will

Geohumoral theory

Georg Friedrich Meier

Georg Wilhelm Friedrich Hegel

George Berkeley

George Boole

Giorgio Vasari

Gottfried Leibniz

Gotthold Ephraim Lessing

Groundwork of the Metaphysic of Morals

Hannah Arendt

Harriet Taylor Mill

Hayashi Hōkō

Hayashi Razan

Hayashi Ryūkō

Hegelianism

Heimin Shimbun

Henri Bergson

Henry David Thoreau

Henry Home, Lord Kames

Herbert Spencer

Hirata Atsutane

Historical materialism

Hosoi Heishu

Hoter ben Shlomo

Howard Williams (humanitarian)

Hugo Grotius

Idea for a Universal History with a Cosmopolitan Purpose

Immanuel Kant

Individualist anarchism

Isaak Iselin

Itō Jinsai

Jakob Friedrich Fries

James Guillaume

Jan Wacław Machajski

Jean-Jacques Rousseau

Jean le Rond d'Alembert

Jena romantics

Jens Kraft

Jeremy Bentham

Jewish Communist Labour Party (Poalei Zion)

Jewish Communist Party (Poalei Zion)

Jewish Communist Union (Poalei Zion)

Johann Christian Lossius

Johann Friedrich Flatt

Johann Gottlieb Fichte

Johann Heinrich Lambert

Johann Joachim Lange

Johann Wolfgang von Goethe

Johannes Bredenburg

Johannes Phocylides Holwarda

John Austin (legal philosopher)

John Calvin

John Dewey

John Locke

John Stuart Mill

Józef Gołuchowski

Judah Leon Abravanel

Judge for Yourselves!

Justice as Fairness: A Restatement

Kaibara Ekken

Karl Heinrich Heydenreich

Karl Marx

Karl Wilhelm Friedrich Schlegel

Karl Wilhelm Ramler

Kitaro Nishida

Krastyo Krastev

Krystyn Lach Szyrma

Lazarus Geiger

Lectures on Aesthetics

Léon Dumont

Letters to a Philosophical Unbeliever

Lettre sur les aveugles à l'usage de ceux qui voient

Levi Hedge

Leviathan (book)

Lex, Rex

Libertarian Marxism

Libertarian socialism

List of communist ideologies

Ludwig Andreas Feuerbach

Ludwig Tieck

Luo Rufang

Man a Machine

Martin Luther

Marx's theory of alienation

Marx's theory of human nature

Marxist feminism

Marxist humanism

Marxist philosophy

Mary Wollstonecraft

Max Weber

Meditations on First Philosophy

Meinong's jungle

Memoirs Illustrating the History of Jacobinism

Metaphysical Foundations of Natural Science

Metaphysics of Morals

Methodios Anthrakites

Michael Gottlieb Birckner

Michael Hissmann

Michał Wiszniewski

Michel Henry

Mikhail Bakunin

Miura Baien

Modern philosophy

Moses Mendelssohn

Motoori Norinaga

Muhammad Iqbal

Mulla Sadra

Muro Kyūsō

New England Transcendentalists

Nicholas Leonicus Thomaeus

Nicolas Malebranche

Nicolaus Hieronymus Gundling

Nietzsche's views on women

Nietzsche and Philosophy

Nikolai Putyatin

Non-politics

Non-voting

Novum Organum

Observations on Man

Observations on the Feeling of the Beautiful and Sublime

Ogyū Sorai

On Liberty

On the Concept of Irony with Continual Reference to Socrates

On the Genealogy of Morality

Oration on the Dignity of Man

Outline of anarchism

Paul Rée

Philosophical Fragments

Philosophical Inquiries into the Essence of Human Freedom

Philosophy of Max Stirner

Philosophy of Spinoza

Pierre-Joseph Proudhon

Pierre Cally

Pierre Gassendi

Pierre Nicole

Poale Zion

Political Justice

Political philosophy of Immanuel Kant

Port-Royal Logic

Practice in Christianity

Prefaces

Prolegomena to Any Future Metaphysics

Proletariat

Property is theft!

Randall Swingler

Rate of exploitation

Reification (Marxism)

Relations of production

Relationship between Friedrich Nietzsche and Max Stirner

René Descartes

Repetition (Kierkegaard)

Revolutionary Left (disambiguation)

Richard Sault

Robert Leslie Ellis

Roger Fry

Rudolf Seydel

Rudolph Goclenius

Samuel Taylor Coleridge

Schopenhauer's criticism of the proofs of the parallel postulate

Science of Logic

Scottish School of Common Sense

Sebastian Petrycy

Seo Gyeong-deok

Simion Bărnuțiu

Sir William Hamilton, 9th Baronet

Social ecology

Socialism

Søren Kierkegaard

Spinoza: Practical Philosophy

Stages on Life's Way

Statism and Anarchy

Stoicorum Veterum Fragmenta

Structural Marxism

Sturm und Drang

Suzuki Shōsan

Tan Sitong

The Art of Being Right

The Blood of Others

The Book on Adler

The Communist Manifesto

The Concept of Anxiety

The Crisis and a Crisis in the Life of an Actress

The Doctrine of Philosophical Necessity Illustrated

The False Subtlety of the Four Syllogistic Figures

The Foundations of Arithmetic

The Law of Peoples

The Methods of Ethics

The Only Possible Argument in Support of a Demonstration of the Existence of God

The Phenomenology of Spirit

The Point of View of My Work as an Author

The Sickness Unto Death

The Soul of Man under Socialism

The Subjection of Women

Thomas Carlyle

Thomas Hobbes

Thomas Jefferson

Thomas Paine

Thomas Robert Malthus

Thoughts on the True Estimation of Living Forces

Three Critics of the Enlightenment

Toju Nakae

Tychism

Universal Natural History and Theory of Heaven

Utilitarianism (book)

Vasily Jakovlevich Zinger

Victor d'Hupay

Voltaire

Walter Goodnow Everett

War of Anti-Christ with the Church and Christian Civilization

What Is Property?

Wilhelm Heinrich Wackenroder

Wilhelm Windelband

Wilhelm Wundt

William Blackstone

William Godwin

William Graham Sumner

William Manderstown

William Whewell

Works of Love

Writing Sampler

Yamaga Sokō

Yamazaki Ansai

Yi I

John Eatwell, Baron Eatwell

John Leonard Eatwell, Baron Eatwell, (born 2 February 1945) is a British economist and the current President of Queens' College, Cambridge. A former senior advisor to the Labour Party, Lord Eatwell now sits in the House of Lords as a non-affiliated peer.

Labor theory of value

The labor theory of value (LTV) is a heterodox theory of value that argues that the economic value of a good or service is determined by the total amount of "socially necessary labor" required to produce it.

LTV is usually associated with Marxian economics, though it also appears in the theories of earlier classical liberal economists such as Adam Smith and David Ricardo and later also in anarchist economics. Smith saw the price of a commodity in terms of the labor that the purchaser must expend to buy it, which embodies the concept of how much labor a commodity, a tool for example, can save the purchaser. The LTV is central to Marxist theory, which holds that the working class is exploited under capitalism, and dissociates price and value. Marx did not refer to his own theory of value as a "labour theory of value". Mainstream neoclassical economics tends to reject the need for a LTV, concentrating instead on a theory of price determined by supply and demand.

Marxian class theory

Marxian class theory asserts that an individual’s position within a class hierarchy is determined by their role in the production process, and argues that political and ideological consciousness is determined by class position. A class is those who share common economic interests, are conscious of those interests, and engage in collective action which advances those interests. Within Marxian class theory, the structure of the production process forms the basis of class construction.

To Marx, a class is a group with intrinsic tendencies and interests that differ from those of other groups within society, the basis of a fundamental antagonism between such groups. For example, it is in the laborer's best interest to maximize wages and benefits and in the capitalist's best interest to maximize profit at the expense of such, leading to a contradiction within the capitalist system, even if the laborers and capitalists themselves are unaware of the clash of interests.

Marxian class theory has been open to a range of alternate positions, most notably from scholars such as E. P. Thompson and Mario Tronti. Both Thompson and Tronti suggest class consciousness within the production process precedes the formation of productive relationships. In this sense, Marxian class theory often relates to discussion over pre-existing class struggles.

Monopsony

In economics, a monopsony (from Ancient Greek μόνος (mónos) "single" + ὀψωνία (opsōnía) "purchase") is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers. In the microeconomic theory of monopsony, a single entity is assumed to have market power over sellers as the only purchaser of a good or service, much in the same manner that a monopolist can influence the price for its buyers in a monopoly, in which only one seller faces many buyers.

Organic composition of capital

The organic composition of capital (OCC) is a concept created by Karl Marx in his critique of political economy and used in Marxian economics as a theoretical alternative to neo-classical concepts of factors of production, production functions, capital productivity and capital-output ratios. It is normally defined as the ratio of constant capital (capital invested in plant, equipment and materials) to variable capital (sum total of wages). The concept does not apply to all capital assets, only to capital invested in production (i.e. production capital). The neoclassical concept most similar to the increasing organic composition of capital is capital deepening.

Marx first referred to the idea in 1847

and discussed it in detail in Capital Vol. 1, chapter 25 ("The General law of Capitalist Accumulation"). In Capital Vol. 3 Marx demonstrates that the organic composition of capital decisively influences industrial profitability.

According to Marx, the OCC expresses the specific form which the capitalist mode of production gives to the relationship between means of production and labor power, determining the productivity of labor and the creation of a surplus product. This relationship has both technical and social aspects, reflecting the fact that simultaneously consumable use values and commercial exchange-values are being produced.

Marx calls this capital composition "organic", because it refers to the relationship between "living" and "dead" (or inert) elements in a capital investment. The "living element" is employed labour actively at work. The "dead" parts are the tools, materials and equipment worked with, which are the results of past labour (sometimes referred to as "dead labour").

Marx argues that a rising organic composition of capital is a necessary effect of capital accumulation and competition in the sphere of production, at least in the long term. This means that the share of constant capital in the total capital outlay increases, and that labor input per product unit declines.

Overaccumulation

Overaccumulation is one of the potential causes of the crisis of capital accumulation. A crisis of capital occurs due to what Karl Marx refers to as the internal contradictions inherent in the capitalist system which result in the reconfiguration of production. The contradiction in this situation is realized because of the condition of capitalism that requires the accumulation of capital through the continual reinvestment of surplus value.

Accumulation can reach a point where the reinvestment of capital no longer produces returns. When a market becomes flooded with capital, a massive devaluation occurs. This over-accumulation is a condition that occurs when surpluses of devalued capital and labor exist side by side with seemingly no way to bring them together. The inability to procure adequate value stems from a lack of demand.

The term "overaccumulation" is also used in a neoclassical context.

Rate of profit

In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment.

Surplus value

Surplus value is a central concept in Karl Marx's critique of political economy. "Surplus value" is a translation of the German word "Mehrwert", which simply means value added (sales revenue less the cost of materials used up), and is cognate to English "more worth". Surplus-value is the difference between the amount raised through a sale of a product and the amount it cost to the owner of that product to manufacture it: i.e. the amount raised through sale of the product minus the cost of the materials, plant and labour power. Conventionally, value-added is equal to the sum of gross wage income and gross profit income. However, Marx uses the term Mehrwert to describe the yield, profit or return on production capital invested, i.e. the amount of the increase in the value of capital. Hence, Marx's use of Mehrwert has always been translated as "surplus value", distinguishing it from "value-added". According to Marx's theory, surplus value is equal to the new value created by workers in excess of their own labor-cost, which is appropriated by the capitalist as profit when products are sold.Marx thought that the gigantic increase in wealth and population from the 19th century onwards was mainly due to the competitive striving to obtain maximum surplus-value from the employment of labor, resulting in an equally gigantic increase of productivity and capital resources. To the extent that increasingly the economic surplus is convertible into money and expressed in money, the amassment of wealth is possible on a larger and larger scale (see capital accumulation and surplus product).

Sustainable development

Sustainable development is the organizing principle for meeting human development goals while simultaneously sustaining the ability of natural systems to provide the natural resources and ecosystem services upon which the economy and society depend. The desired result is a state of society where living conditions and resources are used to continue to meet human needs without undermining the integrity and stability of the natural system. Sustainable development can be defined as development that meets the needs of the present without compromising the ability of future generations.

While the modern concept of sustainable development is derived mostly from the 1987 Brundtland Report, it is also rooted in earlier ideas about sustainable forest management and twentieth century environmental concerns. As the concept developed, it has shifted to focus more on economic development, social development and environmental protection for future generations. It has been suggested that "the term 'sustainability' should be viewed as humanity's target goal of human-ecosystem equilibrium (homeostasis), while 'sustainable development' refers to the holistic approach and temporal processes that lead us to the end point of sustainability". Modern economies are endeavouring to reconcile ambitious economic development and obligations of preserving natural resources and ecosystems, as the two are usually seen as of conflicting nature. Instead of holding climate change commitments and other sustainability measures as a drug to economic development, turning and leveraging them into market opportunities will do greater good. The economic development brought by such organized principles and practices in an economy is called Managed Sustainable Development (MSD).The concept of sustainable development has been,and still is,subject to criticism, including the question of what is to be sustained in sustainable development. It has been argued that there is no such thing as a sustainable use of a non-renewable resource, since any positive rate of exploitation will eventually lead to the exhaustion of earth's finite stock; this perspective renders the Industrial Revolution as a whole unsustainable. It has also been argued that the meaning of the concept has opportunistically been stretched from 'conservation management' to 'economic development', and that the Brundtland Report promoted nothing but a business as usual strategy for world development, with an ambiguous and insubstantial concept attached as a public relations slogan (see below).

Use value

Use value (German: Gebrauchswert) or value in use is a concept in classical political economy and Marxian economics. It refers to the tangible features of a commodity (a tradeable object) which can satisfy some human requirement, want or need, or which serves a useful purpose. In Karl Marx's critique of political economy, any product has a labor-value and a use-value, and if it is traded as a commodity in markets, it additionally has an exchange value, most often expressed as a money-price.Marx acknowledges that commodities being traded also have a general utility, implied by the fact that people want them, but he argues that this by itself tells us nothing about the specific character of the economy in which they are produced and sold.

Wage labour

Wage labour (also wage labor in American English) is the socioeconomic relationship between a worker and an employer, where the worker sells their labour power under a formal or informal employment contract. These transactions usually occur in a labour market where wages or salaries are market-determined.

In exchange for the money paid as wages (usual for short-term work-contracts) or salaries (in permanent employment contracts), the work product generally becomes the undifferentiated property of the employer, except for special cases such as the vesting of intellectual property patents in the United States where patent rights are usually vested in the employee personally responsible for the invention. A wage labourer is a person whose primary means of income is from the selling of their labour in this way.

Wage share

In economics, the wage or labor share is the part of national income, or the income of a particular economic sector, allocated to wages (labor). It is related to the capital or profit share, the part of income going to capital,

which is also known as the K–Y ratio.

The labor share is a key indicator for the distribution of income.The wage share is countercyclical; that is, it tends to fall when output increases and rise when output decreases. Despite fluctuating over the business cycle, the wage share was once thought to be stable, which Keynes described as "one of the most surprising, yet best-established facts in the whole range of economic statistics."

However, the wage share has declined in most developed countries since the 1980s.

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