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Marxist Analysis - Essay Example

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Clash ensues and workers make a strike threat as a result of the company’s intention to reduce the wages. In the fall of 1983, Hormel…
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Marxist Analysis
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Marxist Analysis

Download file to see previous pages... There is Lewis Anderson, an experienced negotiator from the global parent union. Anderson warns the workers to call off the strike since in his opinion, they will not win. Anderson is right; when the employees refuse to compromise, the corporation simply provides their job to replacement employees. The situation was almost identical in the recent Caterpillar strike. American Dream provides a catastrophic picture of a State in which the philosophy of unionism of employees standing by other employees is dying off.
The Marxist theories on capitalism comprise the following; a falling rate of profit, a reserve army of the unemployed, business crises, increasing despair of the proletariat, and escalating concentration of industry into few firms. In the Marxian model, the capitalist is the main player in the economic process. The capitalist search for earnings and response to adjusting rates of profits largely explains the dynamics of the capitalist system. In the Marxist model, capitalists rationally and intentionally pursue their economic benefits and implant seeds of their own destruction. According to Marx, capitalism generates undesirable social outcomes, for example, the events depicted in the movie (Marx 762).
In the Marxian model, augmented capital accumulation will raise the labor demand. Increase in demand for labor raises the wage rates. Increasing wage rates lead to diminishing surplus value and profits. Marx explains this scenario using the concept of the reserve army of the unemployed. In Marxist view, there is continuously an excess labor supply in the market, which has the influence of lowering wages and maintaining the profits and surplus value positive. In search of profits, capitalists introduce new machines in the production process. Direct unemployment in the reserve army occurs as a result of replacement of employees with new technology (Marx ...Download file to see next pagesRead More
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