Karl Marx's Critique: Surplus Value and the "Middle Man"

This explanation delves into Karl Marx's core critique of capitalism, focusing on his attack on surplus value and the role of the capitalist as a parasitic "middle man" in the social process of production.

1. The Attack on Surplus Value

This is the cornerstone of Marx's economic theory. He argued that profit in a capitalist system is fundamentally derived from the exploitation of labor.

The Labor Theory of Value

Marx, building on economists like Adam Smith and David Ricardo, started with the premise that the value of a commodity is determined by the average amount of socially necessary labor time required to produce it.

Labor Power as a Commodity

The key twist Marx introduced is that under capitalism, the worker's ability to work—what he called "labor power"—is itself a commodity that the worker is forced to sell to the capitalist in exchange for a wage. The value of this "labor power" (the wage) is determined by the labor time needed to sustain the worker and their family.

The Source of Surplus Value

Here is where exploitation occurs. A worker might be paid a wage that equals the value they create in, for example, 4 hours of work. This is necessary for their survival. However, the capitalist owns the means of production and therefore sets the workday longer, say, at 8 hours. The value the worker creates in those extra 4 hours is the surplus value. The capitalist appropriates this surplus value, which is the source of their profit, rent, and interest.

In essence, Marx attacked the idea that profit was a fair reward for the capitalist's risk. Instead, he saw it as value created by workers but expropriated from them by the capitalist class. The entire system was built on this hidden transfer.

2. The Attack on the "Middle Man" in the "Comity of the Endeavour"

This phrase criticizes the capitalist's role in what should be a social, cooperative process of production.

The "Comity of the Endeavour" (Social Production)

Marx recognized that modern production is inherently social and cooperative. It is not a lone artisan working in isolation; it is thousands of workers in factories, mines, and offices collaborating to create goods. This collective effort is the true source of wealth.

The "Middle Man" (The Capitalist)

The capitalist, in Marx's view, inserts themselves as an unnecessary and parasitic "middle man" in this social endeavor. They own the means of production but do not participate in the actual labor. Because of this ownership, they position themselves between the workers and the fruits of their collective labor, giving them the power to expropriate the surplus value generated by the workforce.

Marx's attack was on the entire capitalist class. He argued that this class had become a fetter on production, reaping the benefits without contributing to the actual work, much like a feudal lord.

Contrasting with Adam Smith's "Invisible Hand"

This is where the contrast becomes stark. Adam Smith saw the individual's pursuit of self-interest (including the capitalist's pursuit of profit) as being guided by an "invisible hand" to promote the social good. The capitalist, by investing and creating jobs, unintentionally benefits society. Karl Marx saw the capitalist's pursuit of self-interest (maximizing surplus value) as the fundamental antagonism at the heart of society. For Marx, the "comity of the endeavour" is corrupted and exploited by the "middle man," creating class conflict, not social harmony.

Concept	Marx's View
Surplus Value	The value created by workers over and above the value of their wages. It is the root of capitalist profit and the basis of the exploitation of the working class (proletariat) by the owning class (bourgeoisie).
"Middle Man"	The capitalist class, which owns the means of production and inserts itself as a parasitic intermediary in the social process of production, appropriating the surplus value created by the collective labor of workers.

In conclusion, Marx argued that by seizing the means of production, the working class could eliminate this parasitic "middle man" and establish a system where the collective workforce would directly control the surplus it produced, leading to a communist society free from class exploitation.