What is the relationship between surplus value and profit

Mondo Finance Updated on 2024-02-22

There is a close connection between surplus value and profits, but they are two different economic concepts. Surplus value refers to the part of the labor value created by the laborer in excess of the value of his labor power, and is the core concept of capitalist production relations. Profit, on the other hand, refers to the total amount of income obtained by an enterprise in a certain period of time, which is the embodiment of the company's operating results.

First of all, we need to clarify the difference between surplus value and profit. Surplus value is the difference between the value of labor created by laborers and the value of labor, reflecting the economic relationship between laborers and capitalists. Profit is the income obtained by the enterprise in business activities, and it is an important embodiment of the company's operating efficiency and market competitiveness.

Second, there are differences in how surplus value and profits are calculated. Surplus value is calculated as the value of labor created by the worker minus the value of his labor, while profit is calculated as the total income of the enterprise minus the total cost. From the point of view of calculation method, the calculation method of profit is more complex, and it is necessary to consider multiple factors such as operating costs and taxes of enterprises.

Although the concepts of surplus value and profit are different, there is a close connection between them. In capitalist relations of production, surplus value is the basis on which the capitalist obtains profits, and profits are the transformed form of surplus value. Capitalists make profits by appropriating surplus value, and the creation of surplus value depends on the value of labor created by laborers. Thus, the relationship between surplus value and profit reflects an economic law, the law of surplus value.

In a market economy, competition between enterprises is mainly manifested in the competition for market share and profits. Enterprises need to obtain more profits by improving production efficiency, reducing costs, and innovating products. Workers, on the other hand, can strive for more surplus value by improving their skills and striving for better wages. In this process, there are also certain contradictions and conflicts in the relationship between enterprises and workers.

To sum up, surplus value and profit are two different economic concepts, but they are closely related to each other. Surplus value is the difference between the value of labor created by the laborer and the value of labor, which is the basis of profit; Profit is the income obtained by the enterprise in business activities, and it is an important embodiment of the company's operating efficiency and market competitiveness. In a market economy, competition and cooperation between enterprises and workers also reflect the relationship between surplus value and profits. With the development of social economy and the improvement of the market economic system, we need to have a deeper understanding of the relationship between surplus value and profits, so as to better promote economic development and social progress.

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