Karl Marxs Views on Economics - Essay Example

Karl Marx’s views on economics rely on his criticism of capitalism. He suggested that the principles upon which capitalism developed were unsustainable, and it would lead to its failure. He argued that a communist society would replace capitalism. According to Karl Marx, labor is important for production and should be treated positively. The payment for labor should reflect the value of the products or services they produce (Buchholz, 2007). However, capitalism is exploitative because it uses free labor, creativity, coercion, and dehumanizing mechanisms to produce goods and services and accumulate wealth over time. Karl Marx argues that social relationships determine the acquisition of means of production, and the mismatch between social and economic structures causes social disruptions – hence the fall of capitalism.
Karl Marx would consider the advent of the internet to be significant because it provides a mechanism through which communities would establish relationships, learn means of production, and create communist systems that would replace capitalism and end its exploitative nature. Karl Marx suggests that capitalists pay their worker's subsistence pay rather than paying them an amount that reflects the value of the business (Buchholz, 2007). The internet would overcome this problem by giving workers a platform to share experiences and learn how to create value on their own rather than relying on the businesses of capitalists.
The subsistence payment of workers gives them enough amounts to survive to continue working for the capitalists ((Buchholz, 2007). Capitalism does not allow them to earn enough money because they would become empowered and start their businesses, leaving the capitalists without workers. In this case, the advent of the internet is important because it empowers workers who earn a low income by allowing them to access information and markets cheaply. Therefore, they can break away from the hands of capitalism and enjoy equal opportunities as the capitalists through internet marketing and communication that create value for them.
An example of the significance of the internet is that it may allow a designer to earn the full value for his efforts. For example, if a designer works for a capitalist and creates a value of $100 for every piece of cloth, the designer may get $40 and the capitalist takes $60, half of which she uses to pay fixed costs. The extra $30 that goes to the capitalist is an exploitative value. With the internet, the designer can get information about the market and sources of income to start a business. The internet, therefore, empowers her to start her own business and build social relationships that will enable her to start her own business and take the full value of $100 from his efforts. Therefore, the internet eliminates exploitation by providing information. Read More