added value is an expression of the scope of Economy, created by Karl Marx which means part of the value of the labor force spent by a given worker in production and which is not remunerated by the boss. It can also be classified as the excess of income over expenses.
The labor power of a worker (also considered as a commodity by Marx) has the same value as time that the worker needs to produce enough to receive his salary and guarantee the subsistence of his family. Despite this, the value of this time is often less than the amount of total workforce. The difference between these two values is known as added value.
This Marxist theory is a clear critique of capitalism, indicating the capitalist exploitation of the workers, as the wages paid were a small percentage of the amount equivalent to what was produced. This theory was used by various members of the proletariat with the aim of receiving better wages.
It can also be qualified as the difference between the salary received by an employee and the value of the work he produced.
In a sense unrelated to economics, surplus value can indicate something or someone that is valuable, representing an advantage. Ex: He is an excellent player, he is a real asset to his team.
Relative and absolute surplus value
Let's see the following example: In a textile industry, a worker needs only 4 hours a day to produce goods worth his monthly salary. Thus, assuming that the daily workday has 8 hours, in a month with 22 working days, the worker needs only 11 days to produce the amount equivalent to his salary. Despite this, he cannot work just 11 days a month or 4 hours a day, and must continue producing. The profit earned from your work in the remaining hours goes to your boss and is designated as added value. According to Marx, this example designates the absolute surplus value.
THE relative surplus value refers to increased productivity through advanced technological processes. This means that new machines improve the production process, making it possible to produce more goods in less time, increasing profit. In this way, the worker's salary is paid in even fewer days.
The two capital gains make employers profit in different ways: the absolute capital gain through length of working hours (keeping the same salary), while the relative surplus value reduces the value of the strength of work.
