Skip to main content
What’s the difference between ‘absolute’ and ‘relative’ surplus value?
The MARX MEMORIAL LIBRARY unpicks the two principal ways in which capitalists maximise the difference between what they put into the workplace and workforce – and the much greater profits they get out
PERFECTLY ILLUSTRATED: Unionised GMB workers rally outside the Amazon fulfilment centre in Coventry during a strike in January 2023

LET’S start with a recap on “surplus value.” Before Marx, economists recognised the key importance of work — a distinctive feature of our species — to the creation of everything that humans need to survive.

What Marx added is the recognition that under capitalism, in “selling” labour power (their capacity to work) to any employer, workers receive less than the value they produce.

The difference — “surplus value” — is taken by the owners of capital, some of which is invested in more capital (“capital accumulation”) enabling them to extract more surplus value; for the capitalist, this is a virtuous cycle, underlying the extraordinary dynamism of capitalism.

Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Activists celebrate ‘buy nothing day,’ protesting agains
Full Marx / 11 August 2024
11 August 2024
Most currently popular arguments for degrowth describe a real problem without recognising its true cause – capitalism’s insatiable need to accumulate, argues the MARX MEMORIAL LIBRARY
11tarot
Full Marx / 29 July 2024
29 July 2024
Most phenomena have an explanation, writes the MARX MEMORIAL LIBRARY, but occasionally ‘anomalous’ events have led to new scientific understanding
11 - social wage and the NHS
Features / 8 July 2024
8 July 2024
The fight to defend public services is as important as the struggle over wages, but presents different challenges to workplace organising — especially with regards to bourgeois propaganda and conditioning, writes the MARX MEMORIAL LIBRARY
Farmer
Full Marx / 27 May 2024
27 May 2024
Marx and Engels’ concern with soil provides a focus for understanding the relationship between capitalism and the environment, argues the MARX MEMORIAL LIBRARY
Similar stories
MONEY TALKS: A general view of City workers on Bank Street a
Full Marx / 6 April 2025
6 April 2025
Labour’s fiscal policy is already in trouble. But simply printing money is not a solution, says the Marx Memorial Library and Workers School
capital
Books / 21 February 2025
21 February 2025
JON BALDWIN introduces a new translation of Karl Marx’s masterwork that is readable, relatable and refreshed
11 - social wage and the NHS
Features / 8 July 2024
8 July 2024
The fight to defend public services is as important as the struggle over wages, but presents different challenges to workplace organising — especially with regards to bourgeois propaganda and conditioning, writes the MARX MEMORIAL LIBRARY
11 - AI v workers
Full Marx / 22 April 2024
22 April 2024
The increased efficiency of any aspect of capitalism will not automatically lead to its collapse and transformation — avoiding the dangers and realising the potential of AI will involve struggle, argues the MARX MEMORIAL LIBRARY