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Villager Senior
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Posts: 1,978
Join Date: May 2005
Location: , Wisconsin, USA
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imported post -
17-05-07, 04:58 PM
Umbrachist
Can you explain Surplus Value Theory?
Maybe. LOL
The problem is explaining some theory with some simplified example that hardly ever exists in the real world.
The manufacture of some product requires labor and some production facility, i.e. factory. So producing 100,000 widgets costs $200,000 in labor. The widgets are sold for $400,000 so there is $200,000 in GROSS PROFIT. That might be seen as SURPLUS VALUE. But the factory cost $2,000,000 and the owner only had $500,000 so he had to borrow $1,500,000 and he is paying interest on the loan. So some of that gross profit he keeps and some goes to pay on the loan and they have to make still more widgets to pay it off.
So suppose he pays off the loan and he keeps selling widgets at $4 each. He could raise the workers salaries, but will he?
This gets into the supply and demand concept for labor. What if widgets start being imported for $3? The economy is very big, complicated and interactive. But how consumers spend their money over the decades can have long term effects. I can only wonder what the US would be like if accounting had been mandatory since 1945. I saw an article in a magazine some years ago that only 13 states required that some kind of financial information be taught. A few more states had guidelines but not requirements.
Marx did not live in an age of CONSUMERISM. The problem has not been scarcity since 1945 it has been wasted abundance. But the last 60 years of stupidity are bringing us back to scarcity again.
http://en.wikipedia.org/wiki/Surplus_value
I am about ready to put our economists up against a wall and shoot them.
blkdevillol
umbra
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