Lesson 4.1 – Social class: value, labor, capital

In this module, we begin our study of social class by focusing in greater detail on key aspects of social class: value, means of production, factors of production, commodity, money, surplus value, profit.

WATCH – Video 4.1 – Labor and Class Conflict

COMPLETE – Self-assessment exercise

Answer the following questions to review the concepts studied in the video above (note, you don’t have to submit your answers to these self-assessment questions):

  1. What is capitalistic production?
  2. What does the Labor Theory of Value state?
  3. What does a working class person do when they go to work?
  4. What two things are needed in order to make a product in a capitalist economy?

READ – Reading 4.1 – Pierre Jalee: “Labor Power and Surplus Value”

This reading is the most challenging, but also the most rewarding/important in our two modules on social class. You should read and annotate it carefully. It presents two “formulas” (or diagrams) describing what each social class in a modern capitalist society (such as the US) does in everyday life. Thinking about social class through these diagrams offers a powerful insight on how classes function in our society, and what motivates the thinking, interests, and ideologies of the people in the different social classes:

1592508272-P.Jalee-LaborPowerandSurplusValueDownload

COMPLETE – Self-assessment exercise 4.1

  1. Small-scale commodity production: selling something that you made, in order to buy something that you need can be represented by the following diagram: C-M-C. Study what the letters mean, and what they describe.
  2. Compare small-scale commodity production, with  buying in order to sell: M-C-M’. What is the difference described by the two diagrams?
  3. In M-C-M’, pay close attention to what M’ is. What does it mean? M’ represents surplus value (which we have encountered already), but note how it is described in this reading. M-C-M’ is the general formula of capital.
  4. On p. 24 we have a discussion of labor power (which we already mentioned in the previous video, but now we’ll study it in more detail) and how it makes surplus value (or profits) possible for those who own money/capital.
  5. How is money transformed into capital? This is a key point, because it describes how wealthy people remain wealthy as a class.
  6. Another key point here is that the extraction of profits from the value created by workers, happens through something called surplus labor (review this process which is discussed on p. 26-27)

Study Questions (to be handed in class)

Questions 1-5 are related to the video above (Video 4.1)

Questions 6-7 are based on Reading 4.1 above. These questions will definitely appear on the first exam.

  1. 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.
  2. Another important concept in understanding social class is value. Based on the ideas presented in Video 4.1, what is value?  What give “value” to value, what makes something valuable? 
  3. How are labor and value related? What’s the relationship/connection between the two?
  4. 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.
  5. 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?
  6. As we learned thus far, the capitalist class consists of people who own wealth, as well as the means of production in American society. An important question in understanding how this class works is to ask: how does a capitalist remain wealthy? The answer to this question depends largely on understanding the diagram M-C-M’. So, let’s practice by explaining what happens in this diagram in our own words (but basing our ideas on Reading 5.1). Respond to the following question: Explain M-C-M’ to show how capitalists maintain and increase their wealth. (hint: your answer should weave a summary that includes what you reviewed in the self-assessment exercise question 1-7)
  7. If, as Reading 4.1 showed, the capitalist (wealth-owning) class can be described through the M – C – M’ diagram, what would be the diagram that describes the lives of working-class people? Use the same letters: M and C to write a diagram that contains three parts (just like the capitalist diagram). HINT: think about what each letter (M and C) refer to (M = money or capital; C = commodity). Then, think about which letter should you start the diagram for the working class (M or C)? Why?