Home Uncategorized What is the Marxist Economy that emerged as a Critique of Classical Political Economy and Later Capitalism 2021?

What is the Marxist Economy that emerged as a Critique of Classical Political Economy and Later Capitalism 2021?

by admin
What is the Marxist Economy that emerged as a Critique of Classical Political Economy and Later Capitalism 2021?

What is the Marxist Economy that emerged as a Critique of Classical Political Economy and Later Capitalism 2021?

The most followed and most misunderstood German political economist when it comes to Marxist economics Karl marx and his companion Friedrich Engels income. Consequently, we inevitably encounter the Communist Manifesto written by these two together and Das Kapital written by Marx.

Although most of their economic assumptions are drawn from orthodox classical economics, the pair of Marx and Engels pulled these hypotheses in quite different directions. Despite being claimed to have inspired and condemned in this respect the most accepted anti-market states in the world, this duo, and Marx in particular, were not actually totally opposed to capitalism.

Even so, this two thought that capitalism was coming to an end. Regardless, the duo’s brutal criticism of capitalism and their corresponding inevitable, harmonious socialist future promises were enough to inspire a revolution on a global scale.

After the October Revolution in Russia and the spread of communism to Eastern Europe, the Marxist dream of economy took root effectively and quickly in the first half of the twentieth century. But this dream that came true quickly collapsed before the century was over. The Marxist dream of economy has vanished.

Immediately after the Marxist style of economy became history, the peoples of the USSR, East Germany, Poland, Hungary, Czechoslovakia, Romania, Yugoslavia, Bulgaria and Albania rejected the Marxist ideology and returned to private property rights.

So what was the Marxist economy, what did it defend, what did it mean and how exactly did it come about? Here’s what you need to know and learn about Marxist economics.

What is Marxist Economy?

Marxist economicsBy Karl Marx and Friedrich Engels, 19th century philosophers and economists Express an economic way of thinking. Marxist economics emerged as a critique of classical political economy and later as a critique of capitalism.

Marxist economics capitalism his critique focused mainly on the distribution of surplus products and surplus value. More understandably, Marx argued that the capitalist class gets wealth through the exploitation of others. Marxist economics is not widely used today, but in the 20th century it was adopted and used in Eastern Europe, especially in the USSR.

Marxist economy spread rapidly in Eastern Europe with the October Revolution in Russia in 1917. On the other hand, this system collapsed before the 20th century was completed. Many countries such as the USSR, East Germany, Czechoslovakia, Poland, Yugoslavia and Hungary abandoned the Marxist way of thinking at the same speed.

Labor Theory of Value in Marxist Economy

Karl Marx labor theory of value His ideas around him formed the basic building block of Marxist economy. This theory means that the value of a commodity is the average required to produce that commodity. amount of time expresses determined by. At this stage, we believe it would be correct to give a simple example for a better understanding of the labor theory of value.

For example, if the production of a trousers in a factory costs twice the labor required to produce a shirt, as a natural consequence of this, one pair of trousers would have to be exchanged for two shirts, that is, one pants would be worth two shirts.

The labor theory of value was popular with Marx, as well as some famous economists such as Adam Smith and David Ricardo. However, Karl Marx and Marxist economics took the labor theory of value to a higher level. In this respect, Marx made an important distinction between labor power and labor in the labor theory of value. While he interpreted labor power as the work potential or ability of the worker, he described labor as the actual act of producing value.

Karl Marx also argued that the cost of labor is the total number of hours and costs that society bears in order to provide the worker with the necessary working capacity.

In the Marxist mode of economic thinking, Marx came to the conclusion that the wages of the workers must be in direct proportion to the labor force of the worker. The concept of labor power led Marx to question the distribution of surplus value in a capitalist society. He argued that the players of the capitalist order overwork workers in order to make a profit, which in turn causes the workers to produce more value than they should be paid for.

Value and Use Value in Marxist Economy

Marxist economics advocated the view that the price or value of a commodity could be based on one of two things. Karl Marx these value or use value parsed as. According to Marx, value expressed the value of the commodity compared to other commodities, while use value expressed the usefulness of a good or the criterion for completing subsequent tasks.

Marx dwelled on the view that any value in commodities in general derives from human labor. In this framework, he argued that the concept of value is common among all commodities and that human labor is essentially the fundamental thing that creates commodities. This is why Karl Marx and Marxist economics adopted the labor theory of value.

The Critique of Marxist Economy towards Capitalism

The alienation of workers and the unfair distribution of surplus product and surplus value were among the two most fundamental criticisms of the Marxist economy towards the system of capitalism. Yet the Marxist economy’s critique of capitalism was not limited to these.

Karl Marx alienation theory he stood on it too much. According to his theory, with capitalism, man was alienated from himself, his own labor, relations, the world and even life. According to Marx, this was due to supply and demand in the free market.

Arguing that the free market, by its very nature, forces people to overwork and work on jobs they do not want to do, Marx argued that people will feel like machines because of this.

Finally, it should be stated that Marxist economics is at one point inconsistent. On the other hand, modern socialists today clearly state that they do not agree with Marxism’s ideas about the need for revolution in order to reach a socialist society.

Also Read:

What is Parity 2021? Types & How Are They Calculated? – Introduction to Forex

What is Forex Swap 2021? Swap Calculation Formula – Introduction to Forex

How to Make the Most Profitable Gold Investment 2021📈? – Introduction to Forex

Spread the love

Related Posts