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and capital pays labor that much for its activity.
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The total pie represents how much value is produced by labor
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and what's left over is called surplus value.
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The capitalist firm keeps the surplus value,
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by that means exploits labor,
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and by that means increases its wealth to create wealth.
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Now that leaves out a lot.
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One thing it leaves out is the
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fundamentals of supply and demand for labor.
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It doesn't take into account the idea
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that labor would be extremely cheap in this phase--
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how many people here haven't seen the demographic transition?