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crash_course_socialism.md
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*If this is too long to read right now, I recommend /u/thedashrendar's [excellent summary of Capitalism](https://www.reddit.com/r/communism101/comments/a0mwut/what_exactly_is_capitalism/eaj3b4a/), then coming back to this.*
# Crash Course Socialism # Crash Course Socialism
## Surplus Value ## Surplus Value
[Socialism](https://en.wikipedia.org/wiki/Socialism) is an economic and social system defined by **social ownership of the means of production**. (Workers democratically own and operate their workplaces, as opposed to private control of production aka [Capitalism](https://en.wikipedia.org/wiki/Capitalism)). [Socialism](https://en.wikipedia.org/wiki/Socialism) is an economic and social system defined by **social ownership of the means of production**. (Workers democratically own and operate their workplaces, as opposed to private control of production aka [Capitalism](https://en.wikipedia.org/wiki/Capitalism)).
The [means of production](https://en.wikipedia.org/wiki/Means_of_production) are non-human inputs that help create economic value, such as **factories, industrial machinery, workplaces, large tracts of land**, etc. The means of production are the means of life. Socialists refer to the means of production as *capital*, or [private property](https://en.wikipedia.org/wiki/Social_ownership), IE, the things which give the people who own them power over those who don't. Private property in the socialist context shouldn't be confused with [personal property](https://en.wikipedia.org/wiki/Personal_property#Personal_versus_private_property), such as your home, car, computer, and other possessions, which would be protected. Private property is in actuality another word for *absentee property*, whose ownership is claimed through title only (and not use), for the purpose of extracting rent from the *actual* users, occupants, or workers. The [means of production](https://en.wikipedia.org/wiki/Means_of_production) are non-human inputs that help create economic value, such as **factories, industrial machinery, workplaces, large tracts of land, stores of raw materials**, etc. The means of production are the means of life. Socialists refer to the means of production as *capital*, or [private property](https://en.wikipedia.org/wiki/Social_ownership), IE, the things which give the people who own them power over those who don't.
In a capitalist society the means of production are owned and controlled privately, by those that can afford them (the capitalist, aka those with capital). Production is carried out to **benefit the capitalist** (production for profit). Workers are paid a wage, and **receive that amount regardless of how much value they produce**. Socialists call this difference the [surplus](https://en.wikipedia.org/wiki/Surplus_value), profit, unpaid labor, exploitation, or **wage theft**. Private property in the socialist context shouldn't be confused with [personal property](https://en.wikipedia.org/wiki/Personal_property#Personal_versus_private_property), such as your home, car, computer, and other possessions, which would be protected. Private property is in actuality another word for *absentee property*, whose ownership is claimed through title only (and not use), for the purpose of extracting rent from the *actual* users, occupants, or workers.
In a Capitalist society the means of production are owned and controlled privately, by those that can afford them (the Capitalist, aka those with Capital). Production is carried out to **benefit the capitalist** (production for profit). Workers are paid a wage, and **receive that amount regardless of how much value they produce**.
Socialists call this difference the [surplus](https://en.wikipedia.org/wiki/Surplus_value), profit, unpaid labor, exploitation, or **wage theft**.
`Wage Theft = Worker Value Added - Wage Paid` `Wage Theft = Worker Value Added - Wage Paid`
![image](https://i.imgur.com/Dsmp9Jy.png) ![image](https://i.imgur.com/Dsmp9Jy.png)
Unlike workers, Capitalists make their living, not by clocking in and being paid a certain fixed wage per hour, but through [absentee ownership](https://www.reddit.com/r/communism101/comments/a0mwut/what_exactly_is_capitalism/eaj3b4a/). **Their wealth is earned while sleeping, playing golf, or visiting the mailbox** to collect pieces of this wage theft, often in the form of stock dividends. A worker's wealth is dependent on the number of hours they can work; a Capitalist's wealth is based on how much absentee property they can accumulate, and as such can multiply indefinitely. Some Capitalists earn an average worker's yearly salary in a single night's sleep.
For example, a Copper mine owner neither physically mines the copper, and (living thousands of miles away) likely delegates day-to-day operations to a hired manager. Yet, **because they have a piece of paper that says they own it, they get a large cut of everything that was mined**: the ultimate free lunch.
A 1983 report by England national income and expenditures found that on average, **26 minutes of every hour worked** (or 43% of labor value added) by English workers across a wide range of industries went to various exploiting or unproductive groups, with workers receiving only *57% of their pre-tax productive output as wages*<sup>[1](http://ricardo.ecn.wfu.edu/~cottrell/socialism_book/new_socialism.pdf)</sup>. In other words, at least **40% of the work you do every day is stolen by Capitalists.** A 1983 report by England national income and expenditures found that on average, **26 minutes of every hour worked** (or 43% of labor value added) by English workers across a wide range of industries went to various exploiting or unproductive groups, with workers receiving only *57% of their pre-tax productive output as wages*<sup>[1](http://ricardo.ecn.wfu.edu/~cottrell/socialism_book/new_socialism.pdf)</sup>. In other words, at least **40% of the work you do every day is stolen by Capitalists.**
Capitalists use the surplus to [push out competitors](https://en.wikipedia.org/wiki/Anti-competitive_practices) and gain market share, leading to the destruction of most small businesses, with [just a few companies](http://imgur.com/a/xgnEp) controlling our food, media, energy, transportation, and finances. Capitalists use the surplus to [push out competitors](https://en.wikipedia.org/wiki/Anti-competitive_practices) and gain market share, leading to the destruction of most small businesses, with [just a few companies](http://imgur.com/a/xgnEp) controlling our food, media, energy, transportation, and finances.