Constant and Variable Capital
|
Constant Capital |
Constant
capital is represented by the means of production. Variable capital is the
labor power purchased by the capitalist.
Constant capital is not changed by the processes of production, it is simply
transferred to the finished product. Variable capital, on the other hand
generates new value so we can say that: (C+V) -- (C + (V+S))
|
For Marx, the rate of surplus value is then equal to the amount of surplus
over the amount of time required to produce it. (S'=s/v). This is distinct
from profit which is the surplus over the total amount required to produce it.
P'=s/c+v). Thus, the rates of surplus value and profit are going to be
different.
surplus and labor
|