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History of ECON 4 - Essay Example

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Karl Max understood why individuals were living in poverty yet there was an abundance of wealth in the same society (Heilbroner, 164). Karl Max argued that capitalism was the main reason there were wealthy and poor…
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History of ECON 4
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Karl Max meaning of social form of wealth According to Karl Max, when wealth grows poverty also grows. Karl Max understood why individuals were living in poverty yet there was an abundance of wealth in the same society (Heilbroner, 164). Karl Max argued that capitalism was the main reason there were wealthy and poor individuals at the same time. He argues that capitalism involves organizing an economy such that private individuals and not the government own the productions and distribution means.
Max believes that in a capitalist economy the social form of wealth is directly related to the economic activities of the society. Social wealth comes from the production of economic goods in a capitalist economy (Heilbroner, 168). Organization of economic activities leads to division of labor among individuals. The division of labor and the economic organization meets the material needs of the society, which creates social wealth. Max argues that production is done for producing exchange value, but the benefits do not last.
Marx consideration of labor power as a special kind of commodity
Max argues that capitalist economies buy labor with money because production is an important part of the development. Labor power is a special kind of commodity because it involves the special kind of abilities of human beings. Labor is a special kind of commodity because individuals should be willing to sell their labor power. Max argues that individuals and employers should meet in the marketplace as equals. Employers should be able to put his employees in the position of a buyer’s disposal. It indicates that the laborer distances him or her from labor to be able to claim rights it rights. Labor is a special kind of commodity because individuals should not sell the labor he has created (Heilbroner, 169). The individual should sell the labor power because they do not own the means of production. Max argues that some people own the money while some individuals own labor power. It is the reason labor power is a special kind of commodity. Labor power exists in the capacity of a living person.
Karl Max and Malthaus theory of population
According to Karl Max, interpretation of the increase in the population is in the context of a capitalistic fiscal system. He argues that a capitalist takes a huge role in the economic sense. He feels that offer capitalist labor relative trivial share of labor productivity. Capitalist introduce more machinery in the society to increase the value of surplus of labor efficiency. According to Max introduction of machinery, creates a surplus of individuals due to lack of jobs to create balance in the economy (Heilbroner, 170). The population is a result of the effect of the capitalist economic system.
On the other hand, Thomas Malthus believes that population growth occurs quickly in large amounts depending on the birth rate. His theory indicates that the population grows faster than the production rate of food and without measures; an economy can experience famine and war. He feels individuals should have children that they can support. He argues that population increases at a faster rate than the food production.
Work Cited
Heilbroner, Robert. Teachings From The World Of Philosophy. New York: Norton & Company, 1996. Print. Read More
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