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Just curious if anyone can help me out with this question.... What is ‘surplus labor power’ according to Marx? Give two historical examples of ways in which, according to Karl Marx, people have managed to profit from the surplus labor of others.
And got the following answer:
I cannot give you examples from Marx, because I am too lazy to go pull the book off of the shelf. But, this is a basic economics question. Labor expense is high in the U.S., so I outsource my shoe making enterprise to China, where labor is cheap. I profit. The expansion of the railroad systems during the 19th Century are probably closer to what you are looking for. As people moved westward in the U.S. (or simply became more mobile due to the industrial revolution in general), the need for work grew while the supply of work fell. This causes the price of labor to go down (people are willing to work for less because jobs are scarce). Start up a business in a place like that, and as long as you have means to get your product back to where prices for that product are high, you profit off the surplus labor available to you (surplus labor power, I assume). I build a railroad that goes to the western edge of Siberia. Land is cheap there, because it is so desolate. Cheap land and the ability to travel there by rail causes an exodus of people from more costly areas. So, first I build a railroad. The building of the railroad gives people a job, and brings those people farther and farther away from where labor costs are high. So, they make less and less the farther and farther I build the railway. When I finish the railroad (reach its final destination), I build a set of factories that produce goods that sell easily in the more populated areas (from which the laborers came). If I hike up the price of tickets on the railway BACK from the end destination, it makes it impossible for the laborers to return to their original homeplaces. So, they stay. Where do they work? In my new factories. How much do I pay them? Whatever I want. They're stuck, right? It's either learn how to grow wheat in Siberia or work in that factory. The beauty of this is that I already own the means of getting the finished goods CHEAPLY back to where I can sell them for a great profit. I built the railroad, didn't I? So I get goods made with cheap labor and only moderately higher shipping costs. If the economics work, then I have made a greater profit due to the savings on the price of labor. The increase in cost of transportation of said goods is less than the decrease in cost of paying the laborers to make those goods. Gross profit increases. I win. And, Marx would probably add... THEY LOSE. Hope that helps.