- The means of production refers to the tools, resources, and infrastructure used to produce goods and services. This includes things like factories, land, machines, and raw materials. whoever owns the means of the production usually holds the most power in a capitalist system because they control what is produced and how
Labor refers to the human work or effort used in the production process. Workers sell their time and skills to those who own the means of production in exchange for wages.
Example of means of production: A clothing factory with sewing machines, fabric, and buildings used to manufacture clothes.
Example of labor: The workers who operate the sewing machines and assemble the clothes.
2. In Video 5.1, value is explained as the worth of a product or service, which is created through human labor. According to this view (often rooted in Marxist theory), it’s not just the materials or the final product that make something valuable—it’s the amount of labor that goes into producing it.
What gives “value” to value is the socially necessary labor time—meaning the average amount of time it takes a typical worker, using standard tools and skills, to produce something. So, the more labor required (within the norms of production), the more valuable a product tends to be.
For example, a handmade wooden chair is more valuable than a plastic one from a factory, not just because of the material, but because it takes more human labor and time to create.
3. Labor and value are directly connected because, in many economic theories—especially Marxist theory—labor is what creates value. The idea is that the value of a product isn’t just based on its materials or usefulness, but on the amount of human labor required to produce it.
The more socially necessary labor time that goes into making something, the more value it holds. For example, a hand-stitched leather bag is more valuable than a machine-made one because it takes more time and skill from a worker.
In short, labor adds value—without labor, raw materials don’t become useful or valuable products.
4. The difference between labor and labor power is subtle but important.
Labor is the actual work a person does—the effort, time, and activity they put into producing something. It’s what happens when someone uses their energy and skills to create goods or provide services.
Labor power, on the other hand, is the capacity or ability to work. It’s what a worker sells to an employer in exchange for wages. When someone is hired, they’re not selling the work itself (that comes later)—they’re selling their potential to work, their time, energy, and skill that the employer can use.
Think of it this way:
- Labor power is the worker’s ability to do the job.
- Labor is the job actually being done.
Example: If a baker is hired to work 8 hours, they’re selling their labor power—their availability and skill. When they actually bake bread during those 8 hours, that’s their labor.
