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.

In the video, the means of production refers to the raw materials, resources, and land used to produce goods and services. These materials are essential for production but are not owned by the workers (laborers). Instead, they are provided by private businesses or owners for workers to utilize in order to generate production through their labor. Labor encompasses the physical and cognitive effort that workers dedicate their time and skills to producing goods and services,

which in turn determines the value of the means of production; without labor, the means of production have no value.

For instance, a means of production can be a Dell Computer which parts are considered raw material, and the processor, hard drive, RAM, and motherboard are raw materials or components that go into making the final product. The workers (laborers) the factory manufacturers that assemble these raw materials to produce or the workers in the office space utilize the assembled computer in the office . The workers from the factory and inside of an office are subjected to the power dynamics of capitalism. Both are owned by individuals, who sell their labor power (the ability to work) to employers in exchange for wages. Workers don’t usually own the means of production(Raw Materials).

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? 

The idea of value in Marxist theory explains that the worth of a product is closely related to the labor used to produce it. This is known as the labor theory of value, which states that the value of something comes mainly from how much labor time is needed to make it under normal production conditions. Karl Marx believed that the value of an item is directly linked to the work put into it, not the price it is sold for. This view criticizes capitalism by associating the connection between labor and value, focusing on the real effort people put into making goods instead of just economic transactions. 

Value isn’t just about supply and demand or how much a consumer is willing to pay; it’s more about the work that goes into the product. For example, if it takes 3 hours to make a sandwich in a deli compared to 30 minutes at a fast-food chain, the deli sandwich has more value because it requires more labor. This explains why something is considered valuable according to the labor theory of value.

How are labor and value related? What’s the relationship/connection between the two?

Labor and value simultaneously complement each other because labor is what constitutes value. Without labor, value has no substantial essence by which a product can be measured.

For example, if it takes 10 hours to create a work of art, the value of that artwork reflects the labor invested in it—specifically, the 10 hours of effort involved. In contrast, products that can be mass-produced in a shorter amount of time, such as automated factory goods, generally have a lower value. This is because they require significantly less labor; in some cases, the labor may be as minimal as simply flipping a switch to operate a machine that produces the product. As a result, the mass production of goods can lower their market value due to the reduced labor involved.

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

Labor versus Labor power is the ability to define how much a worker expends their energy to do a specific job and how it is measured by their employee through what is determined as compensation. This distinction also explains why workers aren’t paid according to the value of what they produce but instead according to the cost of sustaining their ability to work (labor power), which includes things like food, housing, and healthcare. The labor, as we know it, is the work itself—the actual tasks completed by an individual. Labor power, on the other hand, is a measure of the capacity of what can actually be done from the time a laborer starts their shift at a corporation, such as from 9:00 AM to 5:00 PM. The total time is 8 hours that the individual is scheduled; however, only 4 hours would be compensated for, and the remaining 4 hours would be profit as surplus for the organization.

Surplus value is the additional worth generated by workers that exceeds the compensation they receive for their efforts. It represents the gap between the value a worker produces in a day and the payment they earn for their work. Surplus value is typically created by business owners, employers, or CEOs. The profits that these owners make come from the work provided by their employees. This additional value generated by workers isn’t paid back to them; instead, the employer takes it, which is how they make their profits. Marx views surplus value as unfair and a reflection of marginalized capitalism, which is a major factor in social class inequality. The working class sells their labor which creates value, but the capitalist class exploits that labor and keeps the profits, widening the gap between the rich and the poor. 

For example, consider a factory worker who works for 8 hours and earns $50 for the day. During that time, they produce products worth $100 each hour. So, over 8 hours, they create:

$100 x 8 hours = $800 worth of products. However, since the worker only receives $50, there’s a $750 difference, which represents the surplus value. This $750 is the extra value the worker generates beyond their pay, and the employer retains this as profit. It seems that those in charge, such as employers and owners, are positioned within the corporation to maintain financial control in order to secure profits. Financial control: The owners or employers manage the means of production, allowing them to establish the conditions for labor exchange (such as wages and hours). They determine what portion of the value generated by employees will be allocated to them as wages and how much will be retained as profit.