ABSTRACT
For classical political economists, the social surplus is the part of production that is not necessary for the reproduction of the existing social system. The surplus can either be re-invested in order to expand and transform the existing economic system, or wasted in luxury consumption, leading to economic decline. This depends on whether it is appropriated by a social class that re-invests it into productive activities, or uses it for luxury consumption. The distribution of the social surplus is thus an essential determinant of economic performance.
