Remarks on the meaning of Marx's theory of value

As we have seen, surplus value is, according to Marx's theory, the pivot of a capitalist society's economy. But to understand surplus value we must first know what value is. Marx's account of the nature and course of development of capitalist society therefore begins with the analysis of value.

According to Marx, the value of commodities in modern society consists in the socially necessary labour expended upon them, measured by time. However, this measure of value necessitates a number of abstractions and reductions. To begin with, pure exchange value must be developed, that is, abstracted from the particular use value of individual commodities. Then, in forming the concept of general or abstract human labour, we must set aside the peculiarities of particular kinds of labour (reducing higher or complex labour to simple or abstract labour). Then, in order to get the socially necessary labour time as the measure of the value of labour, we must set aside differences in the diligence, ability, and equipment of individual workers; and further, when we come to convert value into market value or price, we must set aside the socially necessary labour time required for the particular commodities taken separately.