What is the excess value?

Excess value is an economic theory used by German philosopher and economist Karel Marx to convict the economic systems of capitalist style. Excess value is the difference between the worker's wage and the price of the good or service created by this worker. This theory is based on the fact that workers provide value through work used to produce goods and services. Marx also believed that other economic concepts such as capitalism or imperialism did not mean that workers did not properly mean to produce goods or excess value created by their work. This added value is realized through the work needed to produce a source or good, which increases the value of the item above its original costs. Marx believed that individual workers and their productivity were what actually determined the value of consumer goods or services.

The amount of work used to create good or service is how Marx believed that profit can be accumulated in the economy. ConceptThe excess value used by Marx said that workers not only create economic value through wages that have been paid to them, but also through the further value of the transformation of economic resources to valuable products. This allowed the economies to experience greater profit through the production of goods, rather than simply earning income from the sale of real estate. Marx believed that this additional income could be used in favor of individual works by allowing them to maintain a certain amount of their added value through work.

Marx developed an economic formula known as the theory of labels value based on its belief in excess value. This formula was used to determine the value of the work of the individual in the economic environment. The basic formula of this theory was to divide the total profits from the goods sold by the total cost of paid wages to produce these goods. The result of this formula is the rate of excess value that Marx believed that she shouldbe appropriated from employees. Businesses should be able to maximize the rate of excess values ​​by paying the employees sufficient wages after the amount of hours, with the expectation of the specified amount of productivity. Insufficient workers would allow companies to use the workforce and at the same time demand the same amount of productivity. According to Marx's theory, this would reduce the excess value of the produced and weakening of the overall economy.