Frederick Engels starts his introduction of Marx's pamphlet by saying the Marx wrote this article on wage labour and capital before he finished his critique of the political economy in the forties. Engels updated the pamphlet so that it is "approximately as Marx would have written it in 1891  (Marx and Engels, 1969, P.143). His main alteration is the difference between the use of labour and labour power. According to the original pamphlet, the worker sells his labour to the capitalist for wages while in Engels's version he sells his labour power. He says that it is one of the most important points in political economy and not just a juggling of words. Engels goes on to say that according to economist's prices of all commodities, including labour, are changing continuously due to varied circumstances that may not have any direct relation to the production of the said commodity. This made price seem to be determined by chance. When political economy came into existence its first task was to seek the truth behind this chance. It started from the prices of commodities in order to look into the value of the commodities and found that the value determines the price of commodities. Classical economics found that the value of the commodity is determined by the labour required for its production. Marx was the first to investigate and find out that labour adds to the value of a commodity. But classical economics faced several problems while applying this theory and then decided to use another tack. It said that value of a commodity is equal to its cost of production and they proceeded to investigate the cost of production of the worker. The cost of production of the worker consists of that quantity of the means of subsistence- or their price in money- which on the average is necessary to make him capable of working and to replace him after his departure (Marx and Engels, 1969, P.145). Classical economics states that commodities are sold according to their value and the value is determined by the labour involved in it. But this concept of value has several contradictions as the value is different for a worker and the capitalist. Classical economics was thus in a blind alley and Marx became its way out. According to Marx, what the economists considered as the "cost of production of ˜labour' was the cost of production not of labour but of the living worker himself (Marx and Engels, 1969, P.146), also, what the worker sells to the capitalist ceases to be his labour as it can no longer be sold by him. The worker sells his labour power to the capitalist, for a limited time, in return for a payment, but his labour power cannot be separated from him and because of this cost of production coincides with his cost of production. The difficulty that economists face is that the value of labour vanishes when labour power comes into the picture. In present day capitalist societies, labour power is a commodity that is peculiar. Labour power has become a value-creating power that produce greater value then what it possesses and costs. This, says Marx, is the economic situation of the present day society, where the working class produces all value. These values however do not belong to the worker but to the owner of the raw materials, machines and tools. From the whole mass of products the working class only receives a part for itself, while the capitalist class gets the larger part for itself. This gives rise to a conflict in which the capitalist economy must perish. Where on one hand are immeasurable riches and superfluity of products, and on the other hand are the wage workers who are incapable of appropriating this superfluity of products. This division of society into a small, rich class and a large propertyless class of wage workers leads to a society that suffocates in superfluity. Marxist theory is based on the idea of abolishing such state of affairs and creating a society where class differences have disappeared, where there is greater value of morals and means of existence are available in equal measure. Marx puts forward an interesting question- What are wages and how are they determined? In current capitalist societies, every worker's wage is determined differently. They receive different sums of money by their respective employees in accordance with the kind of work they perform. Marx defines wages as the "sum of money paid by the capitalist for a particular labour time or for a particular output of labour  (Marx and Engels, 1969, P.151). The worker sells his labour power for money and the capitalist uses this power to his advantage for a stipulated time. The labour has exchanged his commodity, labour power, for other commodities of all kinds and that in a definite ratio. The ratio is which labour power is exchanged for other commodity is the exchange value of the labour power this exchange value reckoned in money is called, price. Wages are thus only a name for the price of labour. A workers labour power is