Capital gain


Capital gain is a term used to refer to the increase in value of a property due to external causes. An example of this would be, the grandmother’s house suffered a capital gain, since the neighborhood in which it is located has become one of the largest gastronomic points in the city.

Karl Marx between 1818 and 1883 developed this concept and exemplifies it in the following way: a worker carries out an activity in a company for which he receives a salary, but said activity generates money well above what he earns. This value that is not paid to the worker remains in the hands of the employer, who is the person who actually sees the added value.

To understand this term a little, it is worth noting that each product released on the market corresponds to a price that is related to the work that it takes to produce it. According to Marxism, the workforce is also considered a commodity.

Surplus value in capitalism is synonymous with the exploitation of the labor force. For Marx, the boss can increase his profit in two ways: one is absolute surplus value by extending the working day and the other is relative surplus value, which is by cutting payment to the labor force.

Marx saw surplus value in the following way: if a worker works four hours a day to satisfy his needs and those of his relatives, but the employer puts him to work for eight hours, then there will be four hours that are surplus value for the employer, who appropriates the money produced in those remaining hours and thus increases his capital.