Labour power (; ) is the capacity to

work Work may refer to: * Work (human activity), intentional activity people perform to support themselves, others, or the community ** Manual labour, physical work done by humans ** House work, housework, or homemaking ** Working animal, an ani ...

, a key concept used by

Karl Marx Karl Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, political theorist, economist, journalist, and revolutionary socialist. He is best-known for the 1848 pamphlet '' The Communist Manifesto'' (written with Friedrich Engels) ...

in his critique of

capitalist Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...

political economy Political or comparative economy is a branch of political science and economics studying economic systems (e.g. Marketplace, markets and national economies) and their governance by political systems (e.g. law, institutions, and government). Wi ...

. Marx distinguished between the capacity to do the work, i.e. labour power, and the physical act of working, i.e. labour. Human labour power exists in any kind of society, but on what terms it is traded or combined with

means of production In political philosophy, the means of production refers to the generally necessary assets and resources that enable a society to engage in production. While the exact resources encompassed in the term may vary, it is widely agreed to include the ...

to produce goods and services has historically varied greatly. The general idea of labour-power had existed previously in classical political economy.

Adam Smith Adam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the field of political economy and key figure during the Scottish Enlightenment. Seen by some as the "father of economics"——— or ...

's ''

The Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', usually referred to by its shortened title ''The Wealth of Nations'', is a book by the Scottish people, Scottish economist and moral philosophy, moral philosopher Adam Smith; ...

'' and

David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British political economist, politician, and member of Parliament. He is recognized as one of the most influential classical economists, alongside figures such as Thomas Malthus, Ada ...

's '' On the Principles of Political Economy and Taxation'' already referred to the "productive powers of labour". However, Marx made the concept much more precise, critically examining the functions of labour-power in production, how labour-power is used, organized and exploited, and how it is typically valued and priced in bourgeois society. Under capitalism, according to Marx, the ''productive powers of labour'' appear as the ''creative power of capital''. Indeed, "labour power at work" becomes a component of capital, it functions as working capital. Work becomes just work, workers become an abstract labour force, labour becomes an economic input or a factor of production, and the control over work becomes mainly a

management Management (or managing) is the administration of organizations, whether businesses, nonprofit organizations, or a Government agency, government bodies through business administration, Nonprofit studies, nonprofit management, or the political s ...

prerogative.

Definition

introduces the concept in chapter 6 of the first volume of '' Capital'', as follows: :"By labour-power or capacity for labour is to be understood the aggregate of those mental and physical capabilities existing in a human being, which he exercises whenever he produces a

use-value Use value () or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a Commodity (Marxism), commodity (a tradeable object) which can satisfy some human requirement, want or need, o ...

of any description." He adds further on that: :"Labour-power, however, becomes a reality only by its exercise; it sets itself in action only by working. But thereby a definite quantity of human muscle, nerve. brain, &c., is wasted, and these require to be restored." Another explanation of labour-power can be found in the introduction and second chapter of Marx's '' Wage Labour and Capital'' (1847). Marx also provided a short exposition of labour power in '' Value, Price and Profit'' (1865).

Labour power and labour

For Marx, ''Arbeitskraft'', which he sometimes instead refers to as ''Arbeitsvermögen'' ("labour-ability" or "labour-capacity") refers to a "force of nature": the physical ''ability'' of human beings and other living things to perform work, including mental labour and skills such as manual dexterity, in addition to sheer physical exertion. Labour power is, in this sense, also the aspect of labour that becomes a commodity within capitalist society and is alienated from labourers when it is sold to capitalists. By contrast, "labour" may refer to all or any activity by humans (and other living creatures) that is concerned with producing goods or services (or what Marx calls

s). In this sense, the usage of labour (''per se'') in

Marxian economics Marxian economics, or the Marxian school of economics, is a heterodox school of political economic thought. Its foundations can be traced back to Karl Marx's critique of political economy. However, unlike critics of political economy, Marxian ...

is somewhat similar to the later concept, in

neoclassical economics Neoclassical economics is an approach to economics in which the production, consumption, and valuation (pricing) of goods and services are observed as driven by the supply and demand model. According to this line of thought, the value of a go ...

, of "labour services". The distinction between labour and labour-power, according to Marx, helped to solve a problem that

had failed to solve, i.e. explaining why the

surplus value In Marxian economics, surplus value is the difference between the amount raised through a sale of a product and the amount it cost to manufacture it: i.e. the amount raised through sale of the product minus the cost of the materials, plant and ...

resulting from profit normally arises out of the process of production itself—rather than in the investment of capital (e.g. the advance of money-capital in the form of wages) in labour-power (acquired from labourers). Acccording to Marx, Marx's concept of labour power is sometimes compared to that of

human capital Human capital or human assets is a concept used by economists to designate personal attributes considered useful in the production process. It encompasses employee knowledge, skills, know-how, good health, and education. Human capital has a subs ...

. However, Marx himself would most likely have considered a concept such as "human capital" to be a reification, the purpose of which was to suggest that workers were really capitalist investors. In ''Capital, Vol. 2'', Marx writes sarcastically:

Labour power as commodity

Sabah Sarawak labour advert Kuala Lumpur

Under capitalism, according to Marx, labour-power becomes a

commodity In economics, a commodity is an economic goods, good, usually a resource, that specifically has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to w ...

– it is sold and bought on the market. A worker tries to sell his or her labour-power to an employer, in exchange for a wage or salary. If successful (the only alternative being

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...

), this exchange involves submitting to the

authority Authority is commonly understood as the legitimate power of a person or group of other people. In a civil state, ''authority'' may be practiced by legislative, executive, and judicial branches of government,''The New Fontana Dictionary of M ...

of the capitalist for a specific period of time. During that time, the worker does actual labour, producing goods and services. The capitalist can then sell these and obtain surplus value; since the wages paid to the workers are lower than the value of the goods or services they produce for the capitalist. Labour power can also be sold by the worker on "own account", in which case he is self-employed, or it can be sold by an intermediary, such as a hiring agency. In principle a ''group'' of workers can also sell their labour-power as an independent contracting party. Some labour contracts are very complex, involving a number of different intermediaries. Normally, the worker is legally the owner of his labour power, and can sell it freely according to his own wishes. However, most often the trade in labour power is regulated by legislation, and the sale may not be truly "free"—it may be a forced sale for one reason or another, and indeed it may be bought and sold against the real wishes of the worker even although he owns his own labour power. Various gradations of freedom and unfreedom are possible, and free wage labour can combine with slave labour or semi-slavery. The concept of labour power as a commodity was first explicitly stated by

Friedrich Engels Friedrich Engels ( ;"Engels"
''Random House Webster's Unabridged Dictionary''.terial wealth transforms itself into capital simply and solely because the worker sells his labour-power in order to live."

The value of labor power

Labour power is a peculiar commodity, because it is an attribute of living persons, who own it themselves in their living bodies. Because they ''own'' it within themselves, they cannot ''permanently'' sell it to someone else; in that case, they would be a slave, and a slave does not own himself. Yet, although workers can hire themselves out, they cannot "hire out" or "lease" their labour, since they cannot reclaim or repossess the labour at some point after the work is done, in the same way as rental equipment is returned to the owner. Once labour has been expended, it is gone, and the only remaining issue is who benefits from the results, and by how much. Labour power can become a marketable object, sold for a specific period, only if the owners are constituted in law as

legal Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior, with its precise definition a matter of longstanding debate. It has been variously described as a Socia ...

subjects who are free to sell it, and can enter into labour contracts. Once actualised and consumed through working, the capacity to work is exhausted, and must be replenished and restored. In general, Marx argues that in capitalism the value of labour power (as distinct from fluctuating market prices for work effort) is equal to its ''normal or average (re-)production cost'', i.e. the cost of meeting the established human needs which must be satisfied in order for the worker to turn up for work each day, fit to work. This involves goods and services representing a quantity of labour equal to necessary labour or the necessary product. It represents an average cost of living, an average living standard. The general concept of the "value of labour power" is necessary because both the conditions of the sale of labour power, and the conditions under which goods and services are purchased by the worker with money from a salary, can be affected by numerous circumstances. If, for example, the state imposes a tax on consumer goods and services (an indirect tax or consumption tax such as

value-added tax A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...

or goods and services tax), then what the worker can buy with his wage-money is reduced. Or, if price inflation increases, then again the worker can buy less with his wage money. The point is that this can occur quite ''independently'' of how much a worker is actually paid. Therefore, the ''standard of living'' of a worker can rise or fall quite independently of how much he is paid—simply because goods and services become more expensive or cheaper to buy, or because he is blocked from access to goods and services. Included in the value of labour power is both a ''physical'' component (the minimum physical requirements for a healthy worker) and a ''moral-historical'' component (the satisfaction of needs beyond the physical minimum which have become an established part of the lifestyle of the average worker). The value of labour power is thus a ''historical norm'', which is the outcome of a combination of factors: productivity; the supply and demand for labour; the assertion of human needs; the costs of acquiring skills; state laws stipulating minimum or maximum wages, the balance of power between

social classes A social class or social stratum is a grouping of people into a set of hierarchical social categories, the most common being the working class and the capitalist class. Membership of a social class can for example be dependent on education, ...

, etc. Buying labour power usually becomes a ''commercially'' interesting proposition only if it can yield more value than it costs to buy, i.e. employing it yields a net positive return on capital invested. However, in Marx's theory, the value-creating function of labour power is not its ''only'' function; it also importantly ''conserves'' and ''transfers'' capital value. If labour is withdrawn from the workplace for any reason, typically the value of capital assets deteriorates; it takes a continual stream of work effort to maintain and preserve their value. When materials are used to make new products, part of the value of materials is also transferred to the new products. Consequently, labour power may be hired not "because it creates more value than it costs to buy", but simply because it ''conserves the value of a capital asset'' which, if this labour did not occur, would decline in value by an even greater amount than the labour cost involved in maintaining its value; or because it is a necessary expense which ''transfers the value of a capital asset'' from one owner to another. Marx regards such labour as " unproductive" in the sense that it creates no new net addition to total capital value, but it may be essential and indispensable labour, because without it a capital value would reduce or disappear. The larger the stock of assets which is neither an input nor an output to real production, and the wealthier society's elite becomes, the more labour is devoted only to ''maintaining'' the mass of capital assets rather than increasing its value.

Wages and labour costs

Marx regards money-wages and salaries as the ''price'' of labour power (though workers can also be paid "in kind"), normally related to hours worked or output produced. That price may contingently be higher or lower than the value of labour power, depending on market forces of supply and demand, on skill monopolies, legal rules, the ability of negotiate, etc. Normally, unless government action prevents it, high unemployment will lower wages, and

full employment Full employment is an economic situation in which there is no cyclical or deficient-demand unemployment. Full employment does not entail the disappearance of all unemployment, as other kinds of unemployment, namely structural and frictional, may ...

will raise wages, in accordance with the laws of supply and demand. But wages can also be reduced through high price inflation and consumer taxes. Therefore, a distinction must always be drawn between ''nominal gross wages'' and ''real wages'' adjusted for tax and price inflation, and indirect tax imposts must be considered. The labour-costs of an employer are not the same as the real buying power a worker acquires through working. An employer usually also has to pay taxes & levies to the government in respect of workers hired, which may include social security contributions or superannuation benefits. In addition there are often also administrative costs. So, in the United States for example, out of the ''total'' expenditure on labour by employers, the workers get about 60% as take-home pay, but about 40% consists of taxes, benefits and ancillary costs. Employers may be able to claim back part of the surcharge on labour by means of various tax credits, or because the tax on business income is lowered. There is typically a constant conflict over the level of wages between employers and employees, since employers seek to limit or reduce wage-costs, while workers seek to increase their wages, or at least maintain them. How the level of wages develops depends on the demand for labour, the level of unemployment, and the ability of workers and employers to organise and take action with regard to pay claims. Marx regarded wages as the "external form" of the value of labour power. The compensation of workers in capitalist society could take all kinds of different forms, but there was always both a paid and unpaid component of labour performed. The "ideal" form of wages for capitalism, he argued, were ''piece wages'' because in that case the capitalist paid only for labour which directly created those outputs adding value to his capital. It was the most efficient form of

exploitation of labour Exploitation is a concept defined as, in its broadest sense, one agent taking unfair advantage of another agent. When applying this to labour (or labor), it denotes an unjust social relationship based on an asymmetry of power or unequal exchange ...

power.

Workers' consumption

When labour power has been purchased and an employment contract signed, normally it is not yet paid for. First, labour power must be put to work in the production process. The employment contract is only a condition for uniting labour power with the means of production. From that point on, Marx argues, labour power at work is ''transformed into capital'', specifically

variable capital Constant capital (c; ), is a concept created by Karl Marx and used in Marxian political economy. It refers to one of the forms of capital invested in production, which contrasts with variable capital (v; ). The distinction between constant an ...

which accomplishes the valorisation process. Functioning as variable capital, living labour creates both

use value Use value () or value in use is a concept in classical political economy and Marxist economics. It refers to the tangible features of a commodity (a tradeable object) which can satisfy some human requirement, want or need, or which serves a usef ...

s and new value, conserves the value of constant capital assets, and transfers part of the value of materials and equipment used to the new products. The result aimed for is the valorisation of invested capital, i.e. other things being equal, the value of capital is maintained and has also increased through the activity of living labour. At the end of the working day, labour power has been more or less consumed, and must be restored through rest, eating and drinking, and recreation. Medical estimates of the average holiday time necessary for fulltime workers to fully recuperate in a physiological and psychological sense from work stress during the year differ from country to country; but as an approximate gauge, three weeks continuous holiday is physiologically optimal for the average worker. ILO statistics show a wide range of average hours worked and average holidays for different countries; for example, Korean workers work the most hours per year, and Americans have fewer formal holidays than West Europeans. Several researchers have questioned however to what extent additional hours worked really increase the marginal productivity of labour; particularly in services, the work that gets done in five days could often also be done in four. The most difficult aspect to measure is the ''intensity'' of work, though some argue the incidence of work accidents are a reliable yardstick. If workers are laid off by an organization, but the organization continues to produce the same amount of output or services as before, or even more, with the same technology, we can often conclude that the intensity of work must have increased.

The reproduction of workers

Marx himself argued that: This understanding, however, only captures the sense in which the reproduction of labour power comes at no cost to capitalists, like the reproduction of ecological conditions, but unlike the reproduction of, say, machine bolts and plastic wrap. Elites and governments have always sought to actively intervene or mediate in the process of the reproduction of labour power, through family legislation, laws regulating sexual conduct, medical provisions, education policies, and housing policies. Such interventions always carry an economic cost, but that cost can be socialized or forced upon workers themselves, especially women. In these areas of civil society, there has been a constant battle between conservatives, social reformists and radicals. Marxist-Feminists have argued that in reality, household (domestic) labour by housewives which forms, maintains and restores the capacity to work is a large "free gift" to the capitalist economy. Time use surveys show that formally unpaid and voluntary labour is a very large part of the total hours worked in a society. Markets depend on that unpaid labour to function at all. Some feminists have therefore demanded that the government pay "wages for housework". This demand conflicts with the legal framework of the government in capitalist society, which usually assumes a financial responsibility only for the upkeep of "citizens" and "families" lacking other sources of income or subsistence. Other social scientists have tackled this issue from a supercapitalist perspective. Economist Shirley P. Burggraf's parental dividend concept proposes the replacement of existing government payments to the elderly based on an individual's payroll tax contributions (e.g. US Social Security), with a new system granting retirement benefits proportional to the income of one's own children. Such a system could theoretically introduce a return on investment for reproductive labor, thereby incentivizing the care and rearing of children.

State management of labour relations

The state can influence both the value and price of labour-power in numerous different ways, and normally it regulates wages and working conditions in the labour market to a greater or lesser extent. It can do so for example by: *Stipulating minimum and maximum wage rates for work. *Stipulating maximum and minimum working hours, and the retirement age. *Stipulating minimum requirements for working conditions, workplace health and safety issues and the like. *Stipulating requirements for labour contracts, trade union organization and wage bargaining. *Legally defining the civil rights and entitlements of the workers. *Adjusting direct and indirect tax rates, levies and tariffs for wage earners and employers in various ways. *Adjusting social insurance policies, pension charges/claims and the like. *Instituting and adjusting unemployment benefits and other social benefits. *Subsidizing workers or their employers in various ways through eligibility to various benefits or supplements to salary. *Influencing the general price level, by means of

fiscal policy In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...

and

monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...

, or by instituting

price controls Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of go ...

for consumer goods and services. *Regulating the consumption of goods and services by workers. *Policing workers on the job and off-work, and prosecuting criminal activity with respect to workers' lives. *Requiring military service from young workers at fixed pay rates. *Creating additional jobs and employment by means of various policies, or, permitting unemployment to grow. *Encouraging or preventing labour mobility and job mobility. *Permitting or preventing the inflow of immigrant workers, or the emigration of workers. *Stipulating legal requirements relating to the accommodation, health, sex life, family situation and pregnancy of workers. *Organizing training schemes for workers. Marx was very aware of this and in provides many illustrations, often taken from the Blue Books and factory inspector's reports. Part of the role of the state is to secure those general (collective) conditions for the reproduction and maintenance of workers which individuals and private enterprise cannot secure by themselves for one reason or another—for example, because: *providing those conditions practically requires an authority which stands above ''competing'' interests. *meeting the conditions is too ''costly'' for private agencies, requiring investment funds not available to them. *it is ''technically'' not possible to privatize those conditions. *the conditions that have to be supplied are not sufficiently ''profitable'', or ''too risky'' for private agencies. *there is a specific ''political'' or ''moral'' reason why the state should intervene. However, Marx did not provide a general theory of the state and the labour market. He intended to write a separate book on the subject of wages and the labour market (see ''Capital Vol. 1'', Penguin edition, p. 683), but did not accomplish it, mainly because of bad health. Nevertheless, Marx made quite clear his belief that capitalism "overturns all the legal or traditional barriers that would prevent it from buying this or that kind of labour-power as it sees fit, or from appropriating this or that kind of labour" (''Ibid''., p. 1013). It is possible—apart from bad health—that he did not write a general critique of the state, because he lived himself as an

exile Exile or banishment is primarily penal expulsion from one's native country, and secondarily expatriation or prolonged absence from one's homeland under either the compulsion of circumstance or the rigors of some high purpose. Usually persons ...

in Britain, and therefore, he might have got into major trouble personally, if he had criticized the state publicly in his writings in ways not acceptable to the British state. In modern times, the fact that the state has a big effect on wages and the value of labour power has given rise to the concepts of the social wage and collective consumption. If the state claims just as much money from workers through taxes and levies as it pays out to them, then it is of course doubtful whether the state really "pays a social wage". However, more often the state ''redistributes'' income from one group or workers to another, reducing the income of some and increasing that of others.

Quotation by Marx on the value of labour power and classical political economy

Labour market flexibilisation

The commercial value of human labour power is strongly linked to the assertion of human needs by workers as citizens. It is not simply a question of

supply and demand In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris_paribus#Applications, holding all else equal, the unit price for a particular Good (economics), good ...

here, but of human needs which must be met. Therefore, labour costs have ''never'' been simply an "economic" or "commercial" matter, but also a moral, cultural and political issue. In turn, this has meant that governments have typically strongly regulated the sale of labour power with laws and rules for labour contracts. These laws and rules affect e.g. the

minimum wage A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. List of countries by minimum wage, Most countries had introduced minimum wage legislation b ...

, wage bargaining, the operation of

trade union A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...

s, the obligations of employers in respect of employees, hiring and firing procedures, labour taxes, and

unemployment benefits Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work d ...

. This has led to repeated criticism from employers that

labour market Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labou ...

s are over-regulated, and that the costs and obligations of hiring labour weigh too heavily on employers. Moreover, it is argued that over-regulation prevents the free movement of labour to where it is really necessary. If labour markets were deregulated by removing excessive legal restrictions, it is argued that costs to business would be reduced and more labour could be hired, thereby increasing

employment Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

opportunities and

economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...

. However, trade union representatives often argue that the real effect of deregulation is to reduce wages and conditions for workers, with the effect of reducing market demand for products. In turn, the effect would be lower economic growth and a decline in living standards, with increased casualisation of labour and more "contingent labour". It is argued that, because the positions of employees and employers in the market are unequal (it is usually easier for an employer to loose an employee than an employee to loose an employer), employees must be legally protected against undue exploitation. Otherwise employers will simply hire workers as and when it suits them, without regard for their needs as citizens. A further twist in some countries is that unions are part of the political establishment, and not interested in collecting complaints and suggestions from individual employees, employing staff in proportion to dues received, backing employees' legal cases, or rocking the boat in their public statements. For example, in China some workers are in prison for criticising the official unions. Often the demand for "

labour market flexibility The degree of labour market flexibility is the speed with which labour markets adapt to fluctuations and changes in society, the economy or production. This entails enabling labour markets to reach a continuous equilibrium determined by the inters ...

" is combined with the demand for strong

immigration control Border control comprises measures taken by governments to monitor and regulate the movement of people, animals, and goods across land, air, and maritime borders. While border control is typically associated with international borders, it als ...

s, to block any movement of labour which would be only a burden for

capital accumulation Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form ...

. The term "flexibility" is used because, while capital must be able to move freely around the globe, the movement of labour must be strictly controlled. If that control does not exist, it is argued, it could mean additional costs to employers and taxpayers.

Criticism

It has been argued by

Ian Steedman Ian Steedman (born 1941, London) is a British economist. He was for many years a professor of economics at the University of Manchester before moving down the road to Manchester Metropolitan University. He retired from there at the end of 2006, but ...

that Marx's own concept of labour power was in truth very ''similar'' to that of David Ricardo and

and, therefore, that Marx was not saying anything really new. However, Marx's interpretation is (as he himself said) ''different'' from the "natural price of labour" of the classical political economists, because the "free play of market forces" does not gravitate spontaneously and automatically toward the "natural price" (the value) of labour power. Precisely because labour power is a unique and peculiar commodity, being lodged in the living worker, it does ''not'' conform to all the same laws as other kinds of commodities. Depending on social conditions, labour power may ''durably'' trade at prices well above, or below, its real value. Marx only assumed that labour power traded at its value, in order to show that even if that was the case, the worker was still economically exploited. But he was well aware that often labour power did not trade at its value, either because of unfavourable wage-bargaining conditions or because of labour scarcity. A recent criticism by Prof. Marcel van der Linden is as follows: "Marx's thesis is based on two dubious assumptions, namely that labour needs to be offered for sale by the person who is the actual bearer and owner of such labour, and that the person who sells the labour sells nothing else. Why does this have to be the case? Why can labour not be sold by a party other than the bearer? What prevents the person who provides labour (his or her own or that of somebody else) from offering packages combining the labour with labour means? And why can a slave not perform wage labour for his master at the estate of some third party?" This difficulty was first noted in research conducted during the 1980s by Tom Brass, gathered together in his 1999 book. The buying and selling of human work effort can and has taken many more different forms than Marx acknowledges—especially in the area of services. A modern

information society An information society is a society or subculture where the usage, Content creation, creation, information distribution, distribution, manipulation and information integration, integration of information is a significant activity. Its main drive ...

makes possible all kinds of new forms of

hustling Hustling is the deceptive act of disguising one's skill in a sport or game with the intent of luring someone of probably lesser skill into gambling (or gambling for higher than current stakes) with the hustler, as a form of both a confidence tri ...

. Marx said himself that "Above all apitalismoverturns all the legal or traditional barriers that would prevent it from buying this or that kind of labour-power as it sees fit, or from appropriating this or that kind of labour".Karl Marx, ''

Capital, Volume I ''Capital. A Critique of Political Economy. Volume I: The Process of Production of Capital'' () is the first of three treatises that make up , a critique of political economy by the German philosopher and economist Karl Marx. First published on ...

'', Pelican edition 1976, p. 1013). The concept of the value of labour power referred to the ''underlying economic relationship'', not to be confused with the formalities of all the kinds of labour contracts which are possible.

Notes

References

* Tom Brass, ''Towards a Comparative Political Economy of Unfree Labour: Case Studies and Debates.'' (Frank Cass, London, 1999). *Tom Brass and Marcel Van Der Linden (eds.), ''Free and Unfree Labour: The Debate Continues'' (International and Comparative Social History, 5). New York: Peter Lang AG, 1997. * Harry Braverman, ''Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century''. New York: Monthly Review Press, 1974. *''The Critical Lawyer's Handbook'

*Emmanuel D. Farjoun, Moshé Machover and David Zachariah, ''How Labor Powers the Global Economy: A Labor Theory of Capitalism''. Cham, Switzerland: Springer, 2022. * Ben Fine, ''Labour Market Theory: A Constructive Reassessment''. Routledge, London, 1998. *Bonnie Fox, ''Hidden in the Household: Women's Domestic Labour Under Capitalism'', Women's Press, 1980. * Ian Gough & Leslie Doyal, ''A Theory of Human Need'', Macmillan Press Ltd. 1991. *Ian Gough, ''Global Capital, Human Needs and Social Policies: Selected Essays 1994-99'' London: Palgrave, 2000. *

Geoffrey Hodgson Geoffrey Martin Hodgson (born 28 July 1946, Watford) is Emeritus Professor in Management at the London campus of Loughborough University, and also an editor of the ''Journal of Institutional Economics.'' Hodgson is recognised as one of the le ...

, ''Capitalism, Value and Exploitation'' (Martin Robertson, Oxford, 1982). *

Alexander Kluge Alexander Kluge (born 14 February 1932) is a German author, philosopher, academic and film director.(editor) Early life, education and early career Kluge was born in Halberstadt, Province of Saxony (now Saxony-Anhalt), Germany. After growing ...

& Oskar Negt, ''History and Obstinacy''. New York: Zone Books, 2024. *Kenneth Lapides, ''Marx's Wage Theory in Historical Perspective: Its Origins, Development, and Interpretation''. Westport: Praeger 1998. * Makoto Itoh, ''The Basic Theory of Capitalism: The Forms and Substance of the Capitalist Economy''. Barnes & Noble, 1988. *Marcel van der Linden, ''The Workers and the World; Essays toward a Global Labour History''. Leiden: Brill, 2008. *

Ernest Mandel Ernest Ezra Mandel (; 5 April 1923 – 20 July 1995), also known by various pseudonyms such as Ernest Germain, Pierre Gousset, Henri Vallin, Walter, was a Belgian Marxian economist, Trotskyist activist and theorist, and Holocaust survivor. He f ...

, The Formation of the Economic Thought of Karl Marx. Monthly Review Press, 1969. *

, , Volume 1. * Paddy Quick, "Labor Power: A 'Peculiar' Commodity". In: ''Science & Society'', Vol. 82, No. 3, July 2018, pp.386–412. *

Roman Rosdolsky Roman Osipovich Rosdolsky (, ''Roman Osypovyč Rozdol's'kyj''; July 19, 1898 – October 20, 1967) was a prominent Ukrainian Marxian scholar, historian and political theorist. Rodolsky's book of 1968 entitled ''Zur Entstehungsgeschichte des Mar ...

, ''The Making of Marx's "Capital"''. London: Pluto Press, 1977. * Bob Rowthorn, "Marx's Theory of Wages", a chapter in Bob Rowthorn, ''Capitalism, Conflict, and Inflation'', Lawrence & Wishart, London. *Peter Scholliers (ed.), ''Real wages in 19th and 20th Century Europe; Historical and comparative perspectives''. New York; Berg, 1989. {{Syndicalism Marxian economics