Thus, Surplus and Labor

Marx believes that origin of surplus lies in the particular characteristics of labor: Labor can be combined with the means of production to transform other commodities into something that has value greater than the reproduction value of labor plus the value of the means of production.

We can expand on the original M - C - M' equation thus: M - (C L MP ...P ...C') - M'

Thus, when the means of production (MP) are activated by labor (L) they become productive capital (P). This results in the production of commodities that have a value greater than C, call it C'... commodity capital. Commodity capital, when sold, results in a value of money greater than M, M', money capital... then we are ready to begin another circuit.