Karl Marx And The Marxist Theory Of Political Economy

1100 Words Jan 11th, 2015 5 Pages
Economics often detaches from analysing people and the social relationships between them to instead focus on mathematical modelling. In the contemporary world, economists failed to predict numerous crises, the most recent being the Global Financial Crisis of 2006. Such failures coincide with the deteriorating belief in governments, leading to the rebirth of the use of Marxist thinking. “Sales of Das Kapital, Marx 's masterpiece of political economy, have soared ever since 2008, as have those of The Communist Manifesto and the Grundrisse”. However, in a time of increasing admiration and application of his theories, it is vital to ask; Did Karl Marx construct masterpieces of political economy? Or is his work littered with ethical, economical and empirical discrepancies? This report will critically analyse aspects of Marxist economic theoretical tradition in order to answer these and ultimately form a decisive conclusion about the validity of the Marxist study of political economy.

Karl Marx divided society into two groups: the dynamic forces of production in the form of technology and labour skills and the stagnant relations of production. This forms the two classes, the proletariat who are the owners of their labour and the bourgeoisie who own the means of production. The relationship between the two is assessed using the labour theory of value, which demonstrates the exploitation of workers in the aim of getting surplus value: “the difference between the wages…labour…

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