Part 4 of 5 of: Piketty or Marx? Capital in the Twenty-first century: a fundamental criticism by James Miller

Part 4

Wages

Marx explained that the source of bourgeois wealth was the ability of capital to capture and retain a portion of the value created by workers in the production process. This portion is called surplus value (which can be broken down principally into profits, interest and rent). The workers subsist on a limited wage, usually sufficient to maintain their living conditions and raise children. The value of the products pouring out of the process of production, on average, exceeds the value that the capitalist has advanced for their production. When the products are sold in the market, the part in excess of the capitalists' expenses of production is pocketed by the owner of the means of production as surplus value (a portion of which might be paid to the banker as interest, and to the landlord as rent). The surplus value is the portion of value that the capitalist collects without having had to pay any equivalent….

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