Marxs Capitalism and Its Features - Assignment Example

The sense of social equality is also evident in Marx's writings, more particularly in The Communist Manifesto.
Q2. According to Marx, the end of capitalism would be brought about by the insatiable chase for higher profits, which has more than led to the never-ending replacement of humans [workers] with machines, leaving thousands of the populace unemployed. Indeed as the share of profits rises for the capitalists, the share of wages falls, in effect, decreasing the capacity of the masses to buy the goods capitalism produces. The data for the ever-increasing income inequality alongside the weakening aggregate demand is readily available.

Q3. Schumpeter and the future of capitalism
Schumpeter bases his prediction of the fate of capitalism on its own successes [increasing prosperity.
Q4. Using the creative destruction”, Schumpeter argues that the failure of capitalism is internal rather than external as Karl Marx had contended. Using the phrase “creative destruction”, Schumpeter was categorical that capitalism creates its enemies from within the very elites rather than from the Marxian impoverished masses. As rightly predicted, the most radical environmentalists championing capitalism with a human face in the 21st century, for instance, are but socialist children of the very capitalists.

Q5. The differences between Keynes' theory and the classical theory of markets

Keynes differed with the classical theorists in that while the latter believed that such markets should be self-regulating, with supply creating its own demand [Say’s the law] and prices and wages adjusting when necessary to keep the said markets in a state of equilibrium, he [Keynes] argued that such markets need a hand from the government to run properly and to attain agreeable employment levels and sustained economic growth, for prices and/or wages rigid/sticky downwards, and so are the very causes of recessions and high unemployment rates.

Q6. Marriner S. Eccles' contribution to the Keynesian Revolution
An early defender of Keynesianism, Marriner Eccles advocated and actually took a direct role in the introduction of the expansionary fiscal policies in the Fed right after the Great Depression, virtually fixing interest rates at low levels to revitalize demand through constant borrowing from the Treasury as a result of the lowered interest rates.

Anglo-Saxon capitalism differs from European and Asian capitalism in that it is modeled along the invisible hand of Adam Smith directing markets; principles have moderately and completely taken way in the European and Asian models respectively.  The best example of the Anglo-Saxon Capitalist state in existence is the United States; the United Kingdom has infiltrated elements of government involvement in market operatives.  

Q8. The main differences in the economies of the United States, Great Britain, France, Germany, Sweden, Japan, and South Korea lie in the level of government control over the economic decisions in the respective states.

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