The 's Theory Of Political Economy

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

During the nineteenth century, Karl Marx and Andrew Carnegie had definite opinions about the affects of industrialization on society. A greater understanding of their views on history and humanity can be gained by comparing and contrasting two written artifacts: The Communist Manifesto and “Wealth.”

“to a mere money relation,” (Marx and Engels [1848] 2013:35]. Marx, saw the tear down of the old as the only way for the bourgeoisie to survive. Periodically, a crisis occurred where productive forces threatened their conditions and bourgeoisie would have to bring in new productive forces and destroy the old. Marx believed that these changes to technology and productive capacity were the main influence on how society and the economy were organized. The bourgeoisie had to push for the modern world to quickly and continually develop to protect capitalists’ monopolies. However, constant development caused continual disturbances of social conditions by breaking down stable aspects of human life. Capitalist used their power to push the world to advance so that they could prosper with no concerns to the possible effects on the economy, which would have been most detrimental to the proletariat. For Marx, this showed that capitalists’ self-interest pushed economic progress, which led to societal progress but also risked crisis. Capitalism not only affected society through the creation and separation of social classes but also in influencing societal progress and social relations.

Additionally, the development of bourgeois industries causes a proportional deterioration in the condition of the proletariat. This deterioration, which can be slowed but not stopped, creates within the proletariat a revolutionary element, which will eventually destroy their bourgeois oppressors. As Marx says, "What the bourgeoisie, therefore, produces, above all, is its own grave-diggers. Its fall and the victory of the proletariat are equally inevitable".

The Communist Manifesto left a tremendous impact on a society that was rapidly becoming industrialized, and its effects can even be seen on the dominating economic system of the twenty-first century. In the later nineteenth century, however, industrial capitalism was on the brink of ruin. “On many occasions during the past century, Marxists have thought that capitalism was down for the count . . . Yet it has always come back with renewed strength.” Industrial capitalism succeeded in the face of communism, despite numerous economic disasters. As the capitalist economists hopefully noted at the time, these economic earthquakes, temporary in character, soon cured themselves and left capitalism unscathed. Karl Marx sought to create

Marx’s conception of society has its grounds in a theory of action: as he put it, human beings make their own history. But Marx goes on to argue that they do this is circumstances which are not of their own choosing, and he develops an analysis of how action is organized by these circumstances as material conditions of production which structure and determine the social relationship that are primarily generated by the particular material forces of production utilized, which include not only raw materials but also the technology which is used to extract and work them into products (Jenks 15).

Marx believed that machines were a sign of progress in society and he was not opposed to it. However, it has negatively influenced employees globally. According to Marx, these machines caused workers economic impoverishment as it impacted their wages.. The wage a worker received was influenced by the use value and exchange value of the workers labour. Marx claimed that the there is the labour commodity and the capitalist commodity. The workers exchanged their commodity, known as their labour power for the capitalist commodity, which is the money. The wages are the price of the labour that the workers put forth. Often times, they do not pay workers a quality price for what they earn or how much work they do. They are constantly looking for bargains and people who do not sell their work for much. Industry’s try their best to get inexpensive materials, enhanced machines, and cheaper wage workers in order for them to decrease the amount of money coming out of their pockets. Marx believed that due to the unavoidability of capitalism, business owners are basing their business activities solely on the attainment of profit. For that reason, workers will continue to be replaced with machines causing business owners to decrease their spending on a workers’ labor power, leading the unemployment rate to increase. Marx states that value of labour power decreases causing wages to decline.

2. Using political, economic, and social examples, explain how the freedoms of Southern blacks were reduced after 1877.

The Industrial Revolution (1750-1850) had brought about significant changes in agriculture, mining, manufacturing, transportation and technology and subsequently established an era of unprecedented economic growth in capitalist economies. It was within this era that Karl Marx had observed the deprivation and inequality experienced by men of the proletariat, the working class, who had laboured excessively for hours under inhumane conditions to earn a minimum wage while the bourgeoisie, the capitalist class, reaped the benefits. For Marx it was this fundamental inequality within the social and economic hierarchy that had enabled capitalist societies to function. While Marx’s theories, in many instances have been falsified and predictions

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a

With the demise of the Soviet Union at the end of the Cold War, the government model of a totalitarian state led socialism was utterly discredited and thus popular opinion is largely against the relevance of Marxist theory in the 21st century. As a result we are left with the alternative, capitalism, as the pinnacle of human social organization and dialectically the end of human history. The fact that this system has proven to be efficient at industrial development and the allocation of resources, is not up for debate, however many of the flaws that Marx had criticised still exist today. This is the problem that keeps Marxism relevant in contemporary society. Key aspects of capitalist society have been proven to be unstable, tension between the workers and the ownership class has risen. Both are products of the inhumane economics system that is the status quo today.

As the bourgeois advanced financially, they also gained political influence. They progressed from a once oppressed class to an independent urban republic. As their political influence increased, certain changes became clear. The bourgeois had “torn away from the family its sentimental veil, and has reduced the family relation to a mere money relation (Marx).” This force eventually grew to the point that it was able to force other nations to conform to its values and methods or suffer extinction. As the bourgeois became richer, the proletarians began to suffer more. The balance of property began to shift even more rapidly than before leaving property “concentrated…in a few hands (Marx).” Eventually, the super-efficient production of the manufacturing economy began to take its toll on the bourgeois as well as the proletarians. More goods were produced due to the cheaper costs and ease of manufacture leading to an over-production of goods (Marxism). Over-production became a serious problem, resulting with widespread unemployment of the proletarians, and threats of a revolution on the horizons.

In 1949 Harvey J Earl of General Motors pioneered ‘Planned Obsolescence’. He realised that by adding fashionable products when new trends come in older products would be discarded in favour of the latest fashion.

Marx’s (1987) “materialist conception of history” (p. 146) provides an outline through which he presents the intimate connection between society and the provision of material need through the ages. His theory begins with the pre-modern individual, whose existence consists only of productive actions vital to only his own survival, such as gathering food and building shelter. Marx considers this

Moreover, because the aim of production is profit rather than human need, the products of past labor--the machinery and materials, controlled by the capitalists--completely dominate living labor. Workers are literally slaves to the machine and the work process. It controls them, rather than