Central to Marxist political economy, it doesn't occur simply in economic terms but in social relations, politics and every sphere. It's what the bourgeoisie inflict on the proletariat in order to gain surplus value. They live in horrible working conditions, slums, lack of social provisions and over 12 hour working days.
The way in which bourgeoisie keep proletariat in awful working conditions: they have specialised to such an extent that workers simply know how to do one job and feel useless and will not quit. Workers feel disenfranchised and capitalists keep control.
A methodological approach that looks for the causes of developments and changes in human societies in the way in which humans collectively make a living (Making an economical theory about society) 'The history of all hitherto class struggles is that of class struggles' FEUDALISM TO CAPITALISM TO SOCIALISM TO COMMUNISM.
Class that owns the means of production in MPE, exploit the proletariat in order to increase their profits. According to Marx, this number will decrease due to monopolies and increased competition. Own most of society's wealth.
Class that must sell its labour to bourgeoisie in order to gain a minimum wage that barely covers living expenses. According to Marx, this number will increase due to competition and monopolies and shall eventually start a revolution for a classless society. Proletariat are provided with the tools for the own victory.
System based on market principles: cut out commodities trading and use money which is more efficient.
Middle stage in between capitalism and communism (the holy grail) State owns and controls the means of production. Redistributes taxes as a form of welfare. Intervention provides equality of opportunity.
Common ownership of the means of production therefore private property does not exist. Holy grail of Marxism.
Labour theory of value
Links to CPE in the way that it bases the value/cost of a product on how many labour hours a member of the proletariat puts into it.
Looking at society in terms of two polarised classes throughout history: 'history of class struggles'
Absolute surplus value
Bourgeoisie gain profits from increasing the number of hours a proleteriat worker must work a day, or decreasing the wage they are paid.
Relative surplus value
Bourgeoisie increase profits from increasing the intensity of which proleteriat work at (more X in less time) or through investing in machinery.