 You need labor power so you got to give them these workers a value to acquire their capacity to work in the apple industry And I'm assuming the cost there is a dollar Okay, which is worth Two hours remember that's what a buck is worth. It's worth two hours of labor to produce this commodity Money or dollars? Okay? So I got now What do I have here look at the you're looking at it like I'm looking at it I have here the cost of production C plus V is three dollars or six hours So C plus V is the production cost of this particular Commodity and all commodities the C plus V Okay, but this labor goes to work in what does the buyer get the buyer gets not merely two hours Not just the dollar of cost, but the buyer gets more than that That's what the that's what marks is arguing here. The buyer gets a surplus That the worker produces Above and beyond his or cost another dollar Or the two hours And the total worth then of an apple when it's sold on the market by the apple producer So the total worth the total value the translation from the German the total worth is then two three four Two three four four dollars Or eight hours Okay, that's what the apple is worth. That's what the apple produced the apple capital sells it for so This then is the value added. Let me or I'll write it out the value added by The worker The total value added by the worker, okay This then is the use value of labor power Of labor power which is the actual labor performed the four hours Okay, the use value of labor power the living labor the four hours This is what from before this is the embodied labor and if you add the embodied labor plus the Living labor you get four plus four is the eight hours, which is the value of the apple in labor terms Okay, and this is what again. This is what the seller alienates. This is what the buyer Acquires, okay that living labor What does Marx call it that Marx sometimes calls this, you know, as I said to you not he constant capital He calls this variable capital variable capital variable to be contrasted with constant why well because the argument You know from the whiteboard here is because this particular input varies in value it. What does that mean? It produces two dollars a dollar more than what it costs It varies in value the constant capital merely adds its value not terribly surprising to the cost of the apple Okay, but this one adds more Than it costs the capitalist in production So Marx has established here Okay, that the source of new value this surplus value arises outside exchange in the literally the consumption of this particular commodity labor power By the capitalist but notice, you know, it's silly the capitalist is not a cannibal the capitalist is not eating the person What Marx means by the consumption of this particular commodity? What he means is that the use value of this particular commodity is the actual labor performed So because in your reading the consumption of labor power is When the capitalist puts the laborer to work for those four hours, which is the length of the work day literally Last step on this kind of argument, which again is in volume one in your assigned reading I'm going to do then the same thing In yet another way to follow the logic of volume one this Timeline that Marx develops is the length of the work day. Okay interesting diagram So starting with zero H is the number of hours that the worker works in this case Four hours of you know again abstract labor the use value of labor power what the capitalist acquires Let's divide this One two three four hours. So down here I have hours. Okay What does the worker yield in value? So I'll put dollars over here Well over the entire work day the value added by the worker is two dollars Let's see we can do this isn't it not complicated after one hour. We have here a dollar Another hour. We have a dollar third hour. We have a dollar Fourth hour. We have a dollar. Okay, the worker goes to work. Okay, the worker gets paid Two dollars so after two hours of labor The worker has basically Covered his or cost is your two dollars that I make a mistake here Let's see the worker gets paid if I remember correctly now a dollar so after two hours of work The worker has covered his or wages That is the worker creates. Oh, that's what I made my mistake. Sorry Good mistake. The worker creates 50 cents each hour Not a dollar. Okay, because the total is two bucks So the worker every single hour Be more careful. I'll write it up here. The worker is adding a value every single hour of Two dollars, that's the total value added the use value of labor power Divided by the number of hours worked. So That's 50 cents not a dollar like I said 50 cents per hour. So after Two hours of work. Let me go back again. The worker has what? Covered his or wages because the value of labor power is a dollar So if the two hours of labor the worker produces as it were a sufficient Value of apples a buck to cover the wages But the worker doesn't go home the worker continues to work two more hours producing an additional surplus value of 50 plus 50 of a buck. Okay, so this is the dollar To cover the wages. Here's the dollar of surplus value And that goes to the capitalist as the buyer of labor power Marks then you can see you I think you can see where Marks then Uses this this poetic expression Okay, this provocative poetic expression that this then becomes unpaid labor Because the worker is literally working for two more hours for no pay We do the same thing in a Pure level per hour basis the worker produces 50 cents per hour, that's the yield of the denominator So the use value of labor power in the denominator yields a numerator, which is a half a buck per hour What are the work to get paid per hour? Well, you all know when you go to work you calculate The total wages that you receive by the number of hours you work So you're getting a dollar divided by the number of hours here, which would be 25 cents per hour So the worker produces a half a buck of per hour the worker gets paid 25 cents per hour You know times the four adds up to the four dollars Marks calls this or the I mean business. This is called the little V the wage per hour Marks calls this one the intensity of labor. This is what it yields in the numerator So we have every single hour the worker produces 50 gets paid 25 cents in other words there's an excess that the worker doesn't get That the buyer of labor power gets not to sell it the worker produces an excess of 25 cents Per hour, that's a surplus value per hour Times the four hours did your dollar of surplus value. Okay, this 25 cents per hour of surplus times the four hours worked goes to the buyer of labor power So whether you do it on a an hourly basis or as I did it before You do it on the the total labor hour basis There is a surplus value that the worker has alienated to the buyer who is the capitalist and that's the source of this extra value That's the source of profits in capitalism So we have a in a per labor hour basis we have the I the intensity of exploitation versus the V little V for the worker Okay, what the worker is getting paid on let me put it in red make sure that we I end on this note the intensity of labor Versus the wage per hour The more the capitalist can increase the intensity and pay the same wage the more surplus will arise for for the Capitalists in this relationship between buyers and sellers of labor power So that's the argument that Marx has developed to explain the source of surplus value and I'm going to build upon that next time