Surplus Product

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Surplus Product


the portion of the social product created by direct producers in material production, over and above the necessary product. The time during which the surplus product is produced is called surplus labor-time, and the labor expended during this time is called surplus labor.

The surplus product assumes a specific form in each of the socioeconomic formations. The conditions of its production and distribution are governed by the property relations in the means of production in a particular society. In primitive society, because of the extremely low labor productivity, the creation of a surplus product was accidental. A surplus product was first produced on a regular basis at a definite stage in the development of the productive forces, when it became possible to produce more material goods than were needed by the worker and his family. The appearance of the surplus product served as the material basis for the differentiation of producers, the distinction between mental and manual labor, and the exploitation of man by man. In all exploitative socioeconomic formations, the surplus product is appropriated without compensation by the ruling classes. It serves as the source of their wealth and the basis of their parasitic way of life. The creation and extraction of the surplus product in slaveholding and feudal societies were based on extraeconomic constraint.

Under capitalism, the surplus product is the material embodiment of surplus value, the production and appropriation of which is the goal and motive force of the capitalists. The surplus product reflects the antagonism between the class interests of the bourgeoisie and proletariat. When it is distributed, it is broken down into entrepreneurial income, interest on loans, commercial profits, and land rent. Thus, the capitalists and landowners receive their share of the surplus product, which makes possible both personal consumption and capital accumulation. As capitalism develops, the surplus product represents a greater share of the social product as a whole. This is evidence of the increased exploitation of wage labor.

Under socialism, with social ownership and the planned organization of production in the national economy, “the surplus product goes not to the propertied class but to all the working people and only to them” (V. I. Lenin, Leninskii sb., vol. XI, 1929, p. 382). The socioeconomic meaning of the surplus product changes qualitatively under socialism, and the antagonistic character of the distinction between the necessary product and the surplus product is eliminated. The surplus product takes the form of a product that satisfies the social needs of the associated producers. The source of socialist accumulation, the surplus product helps increase the country’s defense capabilities and maintain the state apparatus and the nonproduction sector. Social consumption funds are formed partly from the surplus product.

Because the production and use of the surplus product are subordinated to the goal of socialist production, all the working people have a material stake in creating the surplus product. When the surplus product is distributed, part of it remains in the hands of state enterprises and cooperative and kolkhoz enterprises, constituting their profit and net income, respectively. The other part of the surplus product is placed at the disposal of society and constitutes the centralized net social income.


References in periodicals archive ?
Having begun as a primarily surplus product, cyber liability has wide variety in how policy forms read.
The goods that the labourers make in the appointed time are of a far greater value in comparison to the wage which they get in lieu of their labour for work at the market rate - but they do not get paid for this surplus labour and surplus product. For Marx, this surplus value is divided among the capitalist class in the form of the industrialist's profit, the lender's interest and the landowner's rent.
The data could renew longstanding criticism from the United States and Europe that the world's top metal producer is selling its surplus product abroad, hurting foreign rivals.
In a parallel move the company has increased their prices to Rs39,000 per tonne, whereas they are exporting surplus product at $270 per tonne, equivalent to Rs31,200 a tonne.
From that point on, the victorious state took care to keep almost everyone at the level of subsistence, or just below it, by- appropriating nearly all the surplus product for itself.
According to the source, as the world's surplus product sought an outlet, traders took relief in rising demand growth and significant volumes made their way into respective inventory and demand centers - in the Atlantic basin, this is characterized by gasoline inventory builds in the US and diesel and jet fuel inventory builds in Europe.
"A distribution scheme which provided the opportunity to offload surplus product now would be much better for the long term.
Economic growth as growth of production of material values shall be provided with the growth of consumer goods and growth of production means as compared to the previous period (year), which accumulatively may be called "surplus product" of the company, which in the monetary expression is close to the term "consolidated returns" of the company.
Last year, parent company Kraft Foods donated over pounds 20,000 to FareShare plus over 48 tonnes of surplus product - equating to over 115,000 meals for those in need.
In chapter 3 the method used by Sraffa in determining (relative) prices by reference to a system of equations is clarified, first, in an economic system with no surplus product and, then, in an economic system with a surplus product.
Burkett maintains that Marx does not deny the natural basis of either the surplus product or surplus-value.
Hussein Abdul Wahab bin Daajam disclosed that the surplus product will be exported to foreign markets.