What is a surplus population?

The concept of surplus population accounts for groups of people who are rendered unproductive and left unemployed or underemployed because of the structure of capitalist systems of production.

How is surplus value calculated?

Intuitively, surplus value is calculated as the result of subtracting the costs of production from profits. Thus the formula would be as follows: Surplus value (s) = Revenue – production costs (c+v).

Why is there a surplus population and why was it an issue?

For classical political economists, the poverty and unemployment generated in the early stages of capitalist development denoted the existence of a surplus population caused by the inability of the poor to postpone marriage and behave in a rational and virtuous manner.

What is the surplus value according to Marx?

According to Marx’s theory, surplus value is equal to the new value created by workers in excess of their own labor-cost, which is appropriated by the capitalist as profit when products are sold.

How does surplus in production affect social dynamics?

Human needs. The corollary of increasing wealth in society, with rising productivity, is that human needs and wants expand. Thus, as the surplus product increases, the necessary product per person also increases, which usually means an increase in the standard of living.

Who coined the phrase surplus population?

Malthus
Although he had done his share to decrease it nine years before, in 1834, Malthus had coined the term “surplus population,” and his ideas were still widely popular.

What is the difference between surplus value and profit?

The rate of surplus value reflects the proportion of the total social product appropriated by the capitalist class, and the rate of profit reflects the proportion of any given product appropriated by an individual capitalist producer.

What does it mean when Scrooge says decrease the surplus population?

Not wanting to part with his money, the miserly Scrooge hides behind a Malthusian excuse that if they would rather die, they had better do it, and decrease the surplus population. Scrooge views the poor and economically inactive (which he terms idle) as a burden to society, better off in a workhouse or even dead.

What Stave is decrease the surplus population?

In Stave 1, we saw Scrooge dismiss some charity collectors who had visited his business, asking for money for the poor at Christmas time. Refusing to give them money, Scrooge sent them on their way, saying if they would rather die, they had better do it, and decrease the surplus population.

Why is surplus value important to Marx’s theory?

The higher the surplus value the higher the net income. This will help the government to determine the standard of living enjoyed by its citizens. Karl Marx says that the concept of surplus value is not only inevitable under a capitalistic system but it’s also the soul and heart of a capitalistic economy.

WHO said about surplus value?

philosopher Karl Marx
The idea of surplus value was proposed by German philosopher Karl Marx in his various works, including his famous book, Das Kapital. Marx believed that labour is fundamental to all value created in any economy and that underpaid labour is the source of all profits that accumulate to capitalists.

What is a sursurplus population?

Surplus population differs from the common definition of “unemployed” in that it includes those unable to work, whereas unemployed people are presumed able to work. In that sense only, it is a superior definition.

What is the surplus population according to Karl Marx?

Surplus population, according to Marx, cannot be compared with the surplus of the means of subsistence but with its condition of reproduction. Marx differentiates the surplus population into 2 kinds: the ancient population presses on the productive power, while modern productive power presses on population.

What are the two types of economic surpluses?

There are two types of economic surplus: consumer surplus and producer surplus. A consumer surplus occurs when the price for a product or service is lower than the highest price a consumer would willingly pay.

What is the root of surplus-value?

It has therefore a common root with all other forms of surplus product: unpaid labour. This means that Marx’s theory of surplus-value is basically a deduction (or residual) theory of the ruling classes’ income.