The Capitalist mode of production: The forces of production in capitalist society include the factory method (as distinct from production by family units within the home or by individual crafts men, as was the case in earlier times) and intensive machine technology . This mode requires large investments of capital to be made in plant times etc. and it involves the extensive use of science and technology in development more sophisticated processes
The most important of the social relations of production in a capitalist society are
a. Ownership and control of society’s productive resources one in the heads of a few who invest their capital or put their factories to production only it they think profit can be made
b. Most members of society have to sell their labour to capitalist, and the capitalists have to accept orders in the workplace and have to say or stake packets.
Marxists also insist that only labour should be able to earn money and that money should not be able to earn money in other words they do not think people who are rich should be able to receive an income as interest on their savings or investments, especially as this means that the richer one is the more income one gets without having to work. While rich people consume good made by people for their income. The theory is that only if capitalist produce what people demand will profits be maximized and therefore the most efficient allocations be made.
THE LABOUR THEORY OF VALUE In Capitalist mode of production
Marists argue that the value of good should be circulated in terms of the amount of labour that went into their production and when a capitalist sells something his worker made and receives more for the item than he paid for the inputs including the worker’s wages, he is taking a portion of the values that the worker created.
Their worker’s labour created the total value realized in the sale price but he only received a portion of this value and he is there for being exploited by the capitalists who controls the productive situation but does no work in the creation of the production based on profit and exploitation while profit is the capitalist reward for risking his capital to work for an outcome therefore it is absolutely certain that the labour theory of value is the operative concern in capitalism, the value of a commodity equals the socially necessary labour time required to produce it under that condition, surplus value (the difference between the value produced and the value received by a (abower). Is synonymous with the term “surplus labour” thus capitalist exploitation is realized as deriving surplus value from the worker.