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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.

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