Influential Economic Views of Karl Marx - Research Paper Example

Karl Marx Introduction Karl Heinrich Marx was born in the fifth day of May 1918 in a Trier one Prussia province which is now known as Germany. According to Steven Kreis, the history guide Marx is one of the most influential socialist thinkers to come up in the 19th century. Both parents came from a line of rabbis, who were both Jewish. His father got baptized in an Evangelical Established Church year before Marx was born. Although Marx named himself as an atheist and got baptized as a youth he still got discriminated due to his Jewish background. They is little known about his childhood has until 1830, he was under private education. He then went to Trier High school were the head master was his father’s friend. This school was later raided as the government found out of many teachers being liberal humanist. These teachers gave violating literature that brought about distribution of political liberalism among the students .later at teenage he attended university of Bonn to study literature and philosophy but his father insisted of a more practical field like law. As a result of his weak chest he avoided military service when he was eighteen. He joined Trier Tarven Drinking Society where he once took the role of co-president as he was he was fond of alcoholic beverages. His father transferred him to University of Berlin which was a more serious academic orientation because of his grades were poor. However, Marx was interested in socializing and drinking than taking law. In university of Berlin history and philosophy became more important than studying law. Later, Marx joined Young Hegelian Movement. This movement included other theologians’ David Friedrich and Bruna Baure who produced a revolutionary critique of Christianity and by significance, the liberal resistance to Prussian autocracy. At this point Marx moved into journalism and became an editor in cologne of Rheinische Zeitung which was an influential liberal newspaper supported by industrialists. Eventually Marx emigrated to France, as his articles especially those on economic questions, pushed the government of Prussian to close the paper. Although, the social scientist , historian, revolutionary and philosopher Marx was largely dismissed by scholars in his life time, his economic, social and political ideas won rapid acceptance in socialist trends after he passed away in 1883. Until lately, nearly half of the world’s population lived under authorities that claim to be Marxist. It shows that Marx’s works have been modified and his meaning changed to fit a variety of political circumstance. Furthermore, the fact that many of Marx writings delayed publication means it is only recently that his intellectual stature has been appreciated by scholars. Marx as an economic theorist composed the idea of communism which included all people having all the property and infrastructure. His theories played a significant part in international politics especially late 20th century during the cold war. Marx his work is unique as it polemic other thinkers frequently happened through critique. As a result he has been given in social science first great use of critical method. His attempt to distinguish key findings from ideology prejudices by use of equating metaphysics, speculative philosophy with ideology. This has placed him apart from present day philosophers. Theory of labor value This theory is the science of political economy to show how under capitalization working people are exploited. It also shows how capitalist society operates. This value is fundamental in understanding of the capitalism economics since capitalism production of commodity par excellence. And, theory of labor value essentially explains what determines a commodity value (World Socialist Movement 2012). According to Karl, the basic unit of the capitalist economic structure is the commodity. Labor theory of value by Marx was inherited from classical school. He basically used Ricardo’s theory of value which states that commodities in their prices. He continues to state, commodities should have certain measurable amounts that should be common in all of them. In this theory of Marx considered use utility, or value as a common factor but refused other possibility. He then addressed labor as element in common. Afterwards he concluded that the relative price of commodities is governed by the amount of labor time required to produce it. Marx operates through several problems underlying in the formulation of labor theory of value. He was also capable of giving clearer presentation of the troubles a labor theory of value. As far as Marx was concerned labor was the only social cost of producing a commodity. He dismissed the differing skills of labor and believed of the total ready to use labor to the society for production of a commodity such as homogenous quantity. This he called abstract labor abstract labor. He continues by saying production of any commodity needs use of a share of the supply of the whole abstract labor. Commodities relative prices bring back the amount of abstract supply of labor, which is assessed in problem, as follows, varying outputs from labor with skills that vary. Later he reduced the level of abstraction and coped with the issue by evaluating the labor issue needed socially to produce a commodity by the required time of labor. Labor skills greater than average degree is cut down to average by evaluating its greater productivity then creating suitable adjustments. Abstract labor is the labor of commodity producing that is shared by various types of labor. Here is one of the illustrations used, given a laborer with higher natural ability than other laborer, and produce 100 percent more compared to other laborers who have average skills, every hour of the best laborer will be considered as two hours of average labor. In this way, all period of labor is cut down to socially required time of labor. Value is the total labor potential that can be found in a particular society within a given period of time used for output of a commodity. Marx states the this value of labor is given by dividing the average social productivity by total number commodities produced and expresses in days, weeks or months. Therefore, value is basically a social, objective and historically relative class. It is considered social because it set by involving all results of the different efforts of each individual producer. It is also considered objective as it is established once the given product is a finished commodity, thus independent from customer rating in the market place. Lastly, it is historically as it varies with crucial changes that is regression or progress of average labor productivity in a particular output branch. Marx said that commodity value is set by the quantity of socially required labor in it, or which is similar to amount of required socially labor time spent from start to finish of producing. Note, socially required means the production amount and reproducing a commodity within average conditions of working for instance, average labor intensity and productivity average. In scarlett history of economic theory and thoughts (2012), another problem of concern by Marx in his theory is how to explain the effects of capital goods on relative prices. He sued Ricardo’s results to the problem, asserting that capital is labor that is stored up. Therefore, the time of labor required to make a product, the hours of labor directly utilized and the number of hours needed to produce the capital spoilt in the process The last difficulty underlying in labor theory of value is deducted from gains on prices. The one essential view of the problem involves labor-cost ratios in some industries (Michio 17). Firms that have highly capital intensive make goods of larger profit proportion of final price unlike industries whose capital intensity is lesser. Because of the close analysis of Ricardo, Marx became sufficiently aware of the problem. In other cases addresses the issues that come up in disagreeing fertilities of land. As earlier applied, amount of time spent in labor will raise varying yield when utilized to different land fertilities. In the first two volumes of Marx of Capital fails to tackle this problem, volume three of his books he encountered the problem by taking on differential rent theory by Ricardo. It states that better crop growth rate of labor fertility which is engaged by the differential rents by landlords. However, competition will result the rent on grades in superior lands to rise until the profits are equal. In this case rent is price determined but not price determining. The last difficulty underlying in this theory develops from the influence of gains on costs (Michio 24). One of the fundamental aspects of the problem requires labor- capital proportional in several industries. ‘Capitalist mode of production’ by Karl is a commodity of the ‘industrial revolution’ and labor division totaling from it. By this division virtue, capitalist by Marx’s reality is increasingly splitting into relatively large fractions facing off each other directly. Division of labor is an essential condition for production of commodity in Capitalist reality. Workers/ individuals are attacked by the division at the root level of their lives which are converted to crises. The process of crippling deprives strength thus they experience acute alienation that forever defines them. Alienation by Marx has various dimensions’. The first one, the worker is estranged form products of his labor, but also from production acts. The other, since workers actions belong to some other, such as capitalist, the workers interprets this detachment as a loss of his self. From Marx Karl’s work it is clear that, throughout history wealth, capital and money have prescribed a style of life to the people in general. The rich are dictated by wealth as well as the poor who live around them. Other societies and cultures ones class could not be escaped, he/she had to wait for the following incarnation. Furthermore other cultures wealth idea exceeded a life and permits for growth from class to class that is one class to the next. The sources of my research are very reliable as I have gone through major economist, socialist and philosophers on their opinions on Marx’s theory of labor value. The use of Morishima Michio’s book Marx's economics: a dual theory of value and growth. This gives me a view of Marx work from a totally different angle as Michio who is Japanese is an economist, econometrician and mathematician. Being from a totally different culture and experienced in his area of specialization brings out a different and good analysis of Marx’s work. World economic movement has also being of much help as it brings together great minds in economic issues. Use of online material assists in getting current information from different areas. From Marx’s work they is a drawn distinction between use value and exchange value. He argues that labor is not a wealth source. Conclusion In my view the uses of Marx labor theory of value, is that it has a primary role in ethnical and ideological issues. He shows that property income sources are often unearned or exploitative incomes. This is accomplished by his assumption that surplus value can only be created by one commodity which is labor. Marx consistently maintained this position through his analysis. Therefore, one can conclude that the surplus value sole creator is capital. Labor is on of the main thing in ensuring a stable economy. Therefore, it should be taken seriously and exploitation of workers should be minimized. Marx believes it is not labor as such, that creates value, merely labor power disposed by wage free workers to capitalist. Finally Marx is considered widely in history as one of the most influential thinkers. Self evaluation I will give myself a B that is above average in the self evaluation. This is because I have followed the instructions to the letter. As evident I have my biography is not exceeding 20% of the papers. My works flow very well as I have started with background of Karl Marx until he is grown. As instructed I have mentioned why Marx’s work continues to be prosperous and is been used until today. Secondly, I have used reliable sources such as World Socialist Movement which consist of many different socialist. This philosophers and socialist have knowledge, experience and have worked with many professionals in these areas. Lastly, my in put and opinion is greatly evident as i have used different sources, appreciating them and using my own understanding to communicate their point of view. This means my work is original. References "Economic: Karl Marx Labor Theory Of Value." Economic. N.p., n.d. Web. 5 Dec. 2012. . "Introduction to Marxian Economics 1: The Labour Theory of Value a?“ World Socialist Movement." World Socialist Movement. N.p., n.d. Web. 5 Dec. 2012. . Morishima, Michio. Marx's economics: a dual theory of value and growth.. Repr. [d. Ausg.] 1973. ed. Cambridge [u.a.: Univ. Pr., 1977. Print. Read More