The capitalist system is at the centre of economics’ professor Richard Wolff’s video lecture .

He analyses
the reality necessary and surplus labor in the capitalist system situation in which employees find
themselves nowadays through different steps. The main focus is on surplus labour, but he also explains the
pivots of the capitalist production and how the capitalist system is linked to social and economic problems.

Wolff begins by explaining the relationship between employer and employee, which is at the basis of the
capitalist system. The two main pivots of the capitalist production are “necessary labour” and “surplus
labour”, in relation to what is produced by the employee. Wolff explains that “necessary labour” is the
work the employee does for himself, because it is then paid back to him through salary. , Surplus labour is
what is produced by the employee, but that does not belong to him (in fact, it belongs to the employer) and
that is unpaid.

Wolff then shifts his attention to the ways the value produced by surplus labour is distributed to different
people and with different purposes. In particular, part of the surplus labour serves to pay taxes on
corporations to the government, to pay managers, clerks and shareholders. Furthermore, part of the
surplus can be used to accumulate and increase the capital of the company, this is crucial in order to let the
enterprise grow. Last but not least, a part of the surplus can be used by the managers of the company to
finance political campaigns and lobby the government to create conditions more favorable to the company.
s.

Wolff affirms/insists this distribution of surplus labour leads to social and economic problems, for instance
static growth of the country and the lack of employment. This last problem is caused by managers moving
their companies and using employees’ surplus labour profit to grow them abroad.

In conclusion, the capitalist system is based on surplus labour which is produced by workers but is owned
by managers. Following Marx’s analysis , professor Wollf affirms that the way out of this economic and
social issue is the working mass of people deciding about what the surplus labour should be used for. The
direct consequence of it would be the end of capitalism.

And a more democratic society. Inequality is the greater today than at any time in the past 100 years. In
Italy the top 1% or the population owns more than the bottom 60%. Why are there no jobs, no
opportunities, because they can make more money manufacturing and producing overseas, or with
machines, and the wellbeing of the Italian people is of no concern in relation to making money. This is what
has been driving wages down, creating worker insecurity, and since the wealthiest end up paying very little
in taxes causing a squeeze on social programs (healthcare, pensions, education, etc.)

This is mostly very nice work, you understand the text and are offering the key information coherently for
the most part. It is time to move into a different gear, read my comments carefully and we can proceed
from here. Summary is the most important thing to learn how to do well at this point because it will take
you directly to comparative analysis of texts.