Marx did not create this theory however remains one of his central economic critiques to the inevitable flaws of capitalism. The theory refers to the value of a commodity only being related to the labor involved in producing it.
Marx referred to this as the "aggregate of those mental and physical capabilities existing in a human being", which constitutes for the "exploitation of the working class".
The theory refers to the inevitable drive of capitalism, profit. Which is achieved through the Capitalists underpaying the Workers. It also follows that the advancement in productivity, through technology and education, promotes this exploitation through the workers doing more then they used to,, with the same pay.
Evidence of this taking place is depicted by US productivity rates increasing by 83% from 1973 to 2007, although real wages only increasing by 5%. Thus suggesting that there is exploitation through workers not gaining more through their advancements in productive efficiency, hence the Capitalists gain a lot more then the Workers do.
Marx referred to this as the "aggregate of those mental and physical capabilities existing in a human being", which constitutes for the "exploitation of the working class".
The theory refers to the inevitable drive of capitalism, profit. Which is achieved through the Capitalists underpaying the Workers. It also follows that the advancement in productivity, through technology and education, promotes this exploitation through the workers doing more then they used to,, with the same pay.
Evidence of this taking place is depicted by US productivity rates increasing by 83% from 1973 to 2007, although real wages only increasing by 5%. Thus suggesting that there is exploitation through workers not gaining more through their advancements in productive efficiency, hence the Capitalists gain a lot more then the Workers do.