1. The means of production refers to the resources, tools, and infrastructure used to create goods and services, such as a car factory with its building, machinery, and raw materials. Labor, on the other hand, refers to the human effort, skills, and time used in production, such as the workers employed at the car factory, including welders, assembly line workers, and engineers.
  2. Value, according to the video, is determined by the amount of socially necessary labor time required to produce a commodity. Labor gives “value” to value. 
  3. Labor and value are directly related. The relationship is that labor creates value. The amount of “socially necessary labor time” required to produce a commodity determines its value.
  4. Labor is the actual work performed. It’s the process of transforming raw materials or existing goods into something new, using physical and mental effort. It’s the doing of the work. Labor power is the capacity or potential to do work. It’s the worker’s ability – their skills, knowledge, physical strength, and willingness – to perform labor. It’s something the worker possesses and can sell. This is something that the capitalist “purchases.” The key difference, therefore, is that one is the activity (labor) and the other is the potential for the activity (labor power).
  5. Surplus value is the difference between the value of the product a worker produces and the wages the worker receives. it’s the profit (or a significant portion of the profit) that the capitalist makes from the worker’s labor. Surplus value is central to understanding class division because It helps us understand the unequal distribution of wealth in capitalist societies. For example, a fast food worker paid $15/hour makes and sells items that generate $30/hour in revenue. The worker generates $30 of value per hour, while only receiving $15 in wages. The $15 difference (surplus value) is profit for the restaurant owner.

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