From Marx to Sweezy: Evolution of the Surplus Value

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Karl Marx and Friedrich Engels considered the theory of surplus-value Marx’s most important contribution to the progress of economic analysis (Mandel). Through this theory, Karl Marx is able to set the stage to place capitalism mode of production in a historical context to find the root of its inner contradictions and kinetics in specific relations to the factors that contribute to its operation (Mandel). Overtime, Marxist economists from every corner of the world have attempted to adapt Karl Marx’s thinking on surplus value to the ever changing capitalistic society that they lived in. Among them, Paul Sweezy and Paul Baran’s “Monopoly Capital” has achieved the most resounding acceptance in mainstream economics. This paper will examine the influence of Karl Marx’s surplus value on the ideas of Paul Sweezy and Paul Baran’s “Monopoly Capital”. Karl Marx’s Theory of Surplus Value In the theory of surplus value, the value of the entire product is produced in the course of the production process with labor contributing most of the value (Mandel). The surplus product and its money form is the residual after producing classes receive their compensation (Mandel; Marx 1867, 5/21/2011; Marx 1894, 5/21/2011). The income of the ruling class, the capitalist, was hence derived from the appropriation of unpaid labor; an act that Marx saw as the exploitation of labor (Mandel; Marx 1867, 5/21/2011). In the “Communist Manifesto”, Engels and Marx wrote: “The bourgeoisie, during its rule of scarce one hundred years, has created more massive and more colossal productive forces than have all preceding generations together. Subjection of Nature's forces to man, machinery, application of chemistry to industry and agriculture, steam-navigation, railways, electric telegraphs, clearing of whole continents for cultivation, canalisation of rivers, whole populations conjured out of the ground

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