Karl Marx: Capitalism versus Socialism and Communism - Assignment Example

Karl Marx Abstract Capitalism hinges on the production of for profit rather than social need and the working class are expected to create new value, but only entitled to a small portion of the new value as wages. Capitalists consider the balance as the surplus; nevertheless, the working class cannot afford to purchase back all the goods produced. The capitalists attempt to solve this crisis by re-investing a proportion of the surplus into the industry, but this yields to the generation of more goods, which at a certain point heightens the problem. This makes capitalism a system driven by crisis. This was the focus of Wall Street movement against rising inequality between the wealth 1% and the 99% embodying the working class (both unemployed and employed), which represents a popular expression of the conditions that Marx and Engels discussed when he elaborated on the increasing poverty among the masses and immense wealth of the capitalist class. Karl Marx Introduction Capitalism represents an economic system where individuals or corporations own the means of production and land. By its precise nature, capitalism drives the classes to struggle against each other to the level that the class of workers would be oppressed enough to overthrow the bourgeoisie. Marx envisaged that the revolutionary overthrown capitalism would be replaced by socialism, which gradually evolves into pure communism (Polychroniou, 1996). Socialism, in this case, represents a form of a system that advocates for state ownership of capital, land, and industry. Communism, on the other hand, represents a strictly theoretical system envisaged by Marx in which the entire society is combined into a perfect, classless system grounded in shared ownership of entire means of production, and social semblance (Easterling, 2003). # 1 What would Karl Marx say about the United States capitalistic system? America can no longer be classified as a purely capitalist society given that the American government, in the same way as many other governments have intervened in their economies so as to limit the concentrations of power and respond to the many social problems linked to the unchecked private commercial interests (Polychroniou, 1996). The U.S has largely followed a mixed economy system leaning toward corporate capitalism. Marx would highlight the positive outcomes of the system such as productive forces and the world market (Rockmore, 2002). Marx would laud capitalism as representing an advance from the previous systems and being a progressive force in developing science, wealth, and technique that have laid the basis for a socialist society. However, Marx would not miss to point out the brutality of the system, in failing where it matter most-that the American capitalistic system has engineered the concentration of wealth and power within the hands of a few (Easterling, 2003). #2 Would Marx agree that the society is headed in the right direction of Socialism and/or Communism? America can be considered as leaning towards socialism as demonstrated by the leaning towards controlling of capital through the institution of a tax policy that weighs largely on the wealthy, and placing under control key sectors of the economy such as finance. Based on the U.S government interests in key sectors such as banks and the pursuit of a nationalized healthcare, there has been an assertion that the U.S. is leaning towards socialism. This has been reinforced by the rising public concern regarding capitalism amid the recession. The rise of vocal groups such as Occupy Wall Street has fuelled debate on the walk towards socialism to ape the European welfare system, despite concerns regarding the affordability of the system. The European welfare state system utilizes close to one half of the national output to avail state health care, income grants, extended unemployment benefits, and free higher education. The funding of such a system flows from through taxation and regulation (Dillon, 2010). The leaning towards socialism cannot be entirely considered as right given that other governments headed by socialists such as those of Spain, Greece, and Portugal that remain embroiled in economic crisis manifested by immense public sector debts and high unemployment rates. # 3 Would Marx be happy or unhappy with the U.S. direction? Marx would not be happy with the direction that the U.S. has taken over the years. The U.S. has faced capitalist crises given that the capitalist class has been drowning in riches at the expense of the working class whose wages have reduced dramatically, and the capitalists have been increasing their own share of the surplus product. The U.S., representing the world’s biggest economy, contains the most excessive polarization of wealth given that close to 0.5% of the U.S. population own as much as bottom 90%. In the U.S., for instance, companies’ endeavors to cut costs and circumvent hiring has largely boosted the corporate profits as a share of total economic output while the unemployment rate remains relatively high (ranging around 9.1%) and real wages remain stagnant (Dillon, 2010). The U.S. income inequality, based on some measures is close to its highest since the 1920’s. Prior to the economic crisis, the income disparity was diluted by the ready access to credit, which enabled poor households to sustain affluent lifestyle; however, things could get worse based on the detrimental impact of the crisis. # 4 Do you agree with Marx’s philosophy, why or why not? I agree with Marx on the assertion that capitalism results to the polarization of wealth. The economic crisis of capitalism worldwide has forced a majority of people to reassess their perception of Marx. Karl Marl hypothesized that capitalism was condemned to replicate depressions owing to the cycles of overproduction and as such, Marx would feel vindicated by the economic crisis that is rife in contemporary society. As an economic system, capitalism is driven by forces that render it to be unstable, self-destructive, and anarchic (Hollenbeck, 2012). Marx’s analysis of the nature of capitalist crises, which he theorized as inherent to the system, was accurate. Capitalist embodies a cyclical system in which crises can be triggered by several factors such as political unrest and financial crashes. Marx was right; the American capitalist system has demonstrated an abject failure in availing the bulk of the citizenry with the material means for a dignified existence owing to the rising greed of individuals and the breakdown of the political system to cure the excesses of capitalism. Inequality and poverty represent a part of the elementary nature of the capitalist society (Hollenbeck, 2012). # 5 If you agree or disagree, what would you say to counter or agree with his arguments? Marx was right, and his ideas have not been outmoded in the contemporary society; indeed, Marx’s ideas accurately describe the world as it exists today. The modern global economy bears some resemblances to the conditions that Marx predicted. For instance, Marx described that companies’ pursuit of profits and productivity would in nature lead them to seek fewer and fewer employees, eventually creating an “industrial reserve army” comprising of the poor and unemployed. Capitalism is incapable of totally harnessing the productive forces, which it has generated (Rockmore, 2002). Marx stipulated that the anarchy of the capitalist market system largely resulted in enhancing wealth and power for a few, coupled with rising poverty among the many. As such, the fundamental tenets of Marx’s ideas are applicable to the modern society as ever. Nevertheless, this does not translate to the notion that everything he wrote was accurate in every detail, or remain validated by events. Issues that Marx raised such as the timing and the proximity of the socialist revolution were mistaken. A majority of the demands that Marx drew in 1848 can be considered as obsolete, and the current society is dramatically different from that of his time. Nonetheless, a significant amount of what was devised regarding the society is as relevant today as when it was originally written. # 6 Implication of the slogan "From each according to his abilities, to each according to his needs" to capitalistic country and socialist country In capitalist society, the slogan could be interpreted as pointing to the urge to spread the wealth around or redistribute the wealth via taxation. Nevertheless, it is evident that not all people bear the capability to work as much as others and different people possess diverse needs. As such, paying the workers similar does not necessarily translate to equality even if they invest the equivalent amount of work. The slogan envisaged for the initial stage of socialist society can be considered as a big advance. Nevertheless, the notion of “equal rights” is not the highest level of achievement possible. Within a capitalist system, it is significant given that it represents an advance against negativities such as bigotry, sexism, or racism. In conclusion, one can argue that the American capitalist society is full of contradiction between the means of production (Kornblum & Smith, 2011). The intrinsic contradiction within the system has been the basis of the division within the society into classes of the rich and the poor and is also the basis of the crises of capitalism. References Dillon, M. (2010). Introduction to sociological theory: Theorists, concepts, and their applicability to the twenty-first century. Chichester, UK: Wiley-Blackwell. Easterling, S. (2003). Marx’s theory of economic crisis. Retrieved from: http://isreview.org/issues/32/crisis_theory.shtml Hollenbeck, L. A. (2012). Capitalism versus socialism and communism. Memphis, TN: General Books. Kornblum, W., & Smith, C. D. (2011). Sociology in a changing world. Belmont, CA: Wadsworth Cengage Learning. Polychroniou, C. (1996). Marxism today: Essays on capitalism, socialism, and strategies for social change. Westport, CT: Praeger. Rockmore, T. (2002). Marx after Marxism: The Philosophy of Karl Marx. Chichester, UK: John Wiley & Sons. Read More