1. This video introduces to us multiple key concepts, the first two being “means of production” and “labor.” The term “means of production” refers to any tools or services that must be used in order to make a product. In a capitalist society, the means of production are privately owned by capitalists and operated by workers employed by them. An example of the means of production are the cameras used to broadcast sporting events. The camera operators, are employed by the broadcasting companies to use the company cameras to film the event.
The term “labor” refers to the efforts of the worker to make a product, using the means of production. It is measured in time. An example of labor can be pulled from Roald Dahl’s Charlie and the Chocolate Factory. Mr. Bucket, Charlie’s father, works in a factory screwing toothpaste caps onto their tubes. He is a factory laborer, using the conveyor belt and the toothpaste caps and tubes (means of production) to make a new product.
2 and 3. Value is the measure of, under normal circumstances, how much labor it takes to make a product. The only thing that can increase something’s value is labor, because labor transforms a material or materials into a new thing. The amount of labor put into something determines its value. Dominoes is less expensive than an independent artisan pizza restaurant because, generally, more effort was put in and better ingredients were used for the artisan pizza. The result is an objectively healthier and tastier pizza; a more valuable one. While price and value aren’t exactly the same, price is generally proportional to value.
4. Labor, as defined above, is different to labor power. Labor power is an individuals ability to perform labor. According to Marx, it is the most important commodity in the world. Labor power is rented out to capitalists in order to sustain one’s own life and the lives of the people dependent on them. Labor power, however, is only sustained by the essentials of life, i.e. food, clothes, transportation, hobbies, etc. These things are purchased by selling labor power.
5. Surplus value is the value of the labor power that a worker exercises after they have fulfilled their requirements for sustenance. The capitalist takes all of this value for themselves, and is the result of unpaid labor on the end of the worker. If the worker only labored to meet their sustenance needs, the capitalist wouldn’t receive any profit. Therefore, they must work more than the time required for them to survive, as mandated by the capitalist. All workers labor more than necessary for them to survive, whether at an office or retail job, in service of the capitalist.
This is important because it is the reason that Marx believed capitalism is inherently exploitative. Understanding the concept of surplus value exposes this exploitation, thus helping us understand class and class relationships/dynamics better.