- Two key concepts in this video are the means of production and labor. In your comment, explain how you understand the means of production and labor. Give an example of each.
Means of production = resources, tools, and the facilities needed to create goods or services.
Labor= the human effort applied to these means of production to create a final product.
For example, in a chocolate factory, the means of production are the raw materials like cocoa beans and different machines for roasting, grinding, tempering, and packaging. Labor refers to the chocolate factory workers running these machines and performing tasks like mixing ingredients, production supervision, and packaging the final product.
- Another important concept in understanding social class is value. Based on the ideas presented in Video 5.1 what is value? What give “value” to value, what makes something valuable?
In the video, value is explained by the Labor Theory of Value; A product’s value is measured by how much labor it takes to produce under normal circumstances, the more labor time – more value.
For example, a handcrafted chocolate bonbon, that resource their chocolate from a family-owned organic cacao farm in Costa Rica, where everything from planting and picking the cacao pods to the chocolate production is handmade, has more value than a machine-made, mass sourced and mass-produced chocolate bonbons because more human labor went into producing the chocolate.
Labor is the foundation of value, and it includes more than just the materials or tools, but also the human work(=labor) applied to them, and that’s what makes them valuable.
- How are labor and value related? What’s the relationship/connection between the two?
Labor and value have a very close and reliant relationship. According to the Labor Theory of Value, labor is the source of all value. The time spent by workers on a product defines its value. The more labor (in time and effort) required to make something, the more valuable it is. Going back to the chocolate bonbon example, if it takes 4 hours to make it, the value of that chocolate bonbon is going to be based on that labor time.
- How do you understand the difference between labor and labor power? Hint: this is a key difference, give it your best shot based on what the video says about it, and your own ideas. We’ll clarify and develop it in our discussions, and in my video comments.
The way I understand the difference between Labor and Labor Power is that Labor is the actual work done by a person to produce goods or services and Labor Power refers to a worker’s ability or capacity to work.
When a person goes to work, she or he are selling their labor power to their employer for some time (i.e. “work hours”). The employer then uses the worker’s labor within that time frame to create products, goods or services.
The main difference is that Labor is the action, while Labor Power is the ability to work or the potential to work, which can be rented out to employers in exchange for salaries. For example, based on their experience a chocolatier chef can rent their labor power to a high-end chocolate boutique owner. Their actual work in the shop is their labor.
- Surplus Value: what is it? Why is it important to know about, in our study of social classes? Think about an example of surplus value?
According to the Marxist theory, surplus value refers to the additional value produced by workers’ labor that exceeds the wages they receive for their work, beyond what is necessary to sustain themselves. If it takes 4 hours of labor to earn enough to cover a worker’s wages and living expenses, but the worker continues to work for 8 hours, the additional 4 hours of labor produces surplus value, which is basically considered as a profit for the employees.
This surplus value is important because it’s where profits come from in a capitalist system. The business owner (capitalist) keeps this surplus value as profit. That’s how capitalism works: the capitalist hires other people to increase the value of what they have, and then they keep that extra value (i.e. Surplus Value) for themselves. That is why Marx argued that capitalism exploits workers. Surplus value shows the inequity in how profits are made and shared in a capitalist society.
In the chocolate shop mentioned above, surplus value is created when the chocolatier chef is paid $25 an hour but produces chocolate bonbons that make $100 in sales per hour. The $75 difference is the surplus value, an additional value created by the chocolatier’s labor that makes the owner’s profit.