Nobody downloaded yet

What are the Marxist explanations for the current global economic crises - Essay Example

Comments (0) Cite this document
Summary
According to Marx, this situation can only be changed through a social revolution. In a capitalist society, capitalists own and control the productive…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
What are the Marxist explanations for the current global economic crises
Read TextPreview

Extract of sample "What are the Marxist explanations for the current global economic crises"

Download file to see previous pages Marx argues that the relations of production are initially progressive but deteriorate over time to a point where capitalists are in control of the application of productive forces. The capitalists lack interest in promoting socially beneficial reforms. In a capitalist society, the capitalists benefit most as they are in control of the means of production. As such, they receive a disproportionate share of wealth, power, status and privileges. Marx insists that only labor should earn money and that money should not be used to make more money. As such, capitalists should not receive an income as interest on their savings or investments as they are going to earn income without working (Elster, 1986, P.259).
Marxists argue that due capitalism’s insistence on production for profit; a huge gulf exists between production for profit and production to meet needs. Profits are maximized by producing to satisfy the needs of richer people; and as a result, urgent needs of poorer people are neglected (Elster, 1986, P.297). Capitalists engage in savage competition, and there is pressure to develop more efficient production and better technology. Over time, capitalists tend to increase the percentage of capital investment that goes into the machinery and to decrease the percentage put into buying labor. As a result, workers earn less while capitalists increasingly accumulate wealth. Consequently, the workers have less purchasing power and cannot afford the goods produced by capitalists leading to a fall in capitalists’ profits on the long-run (Elster, 1986, P.230).
The aggressive competition and accumulation of wealth by capitalists gives rise to a chronic problem of finding profitable outlets for the accumulated capital. The search for outlets has led to important phenomena such as takeover mania, speculation, stock market crashes and financial crisis. More importantly, it has inspired ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What are the Marxist explanations for the current global economic Essay”, n.d.)
What are the Marxist explanations for the current global economic Essay. Retrieved from https://studentshare.org/miscellaneous/1616251-what-are-the-marxist-explanations-for-the-current-global-economic-crises
(What Are the Marxist Explanations for the Current Global Economic Essay)
What Are the Marxist Explanations for the Current Global Economic Essay. https://studentshare.org/miscellaneous/1616251-what-are-the-marxist-explanations-for-the-current-global-economic-crises.
“What Are the Marxist Explanations for the Current Global Economic Essay”, n.d. https://studentshare.org/miscellaneous/1616251-what-are-the-marxist-explanations-for-the-current-global-economic-crises.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF What are the Marxist explanations for the current global economic crises

Global economic

...?Global economic - article analysis A. Economist. “World population. Now we are seven billion. Persuading women to have fewer babies would help in some places. But it is no answer to scarce resources”. 2 Oct. 2011 1st version The particular article refers to the potential effects of growth of population globally. The conflict between Julian Simon and Paul Ehrlich in 1980 is used in order to show the different perceptions in regard to the increase of population globally, if compared to the past. More specifically, in 1980 a strong opposition has been developed between J. Simon, an economist, and P. Ehrlich, a biologist (Economist 2011). In the book of Ehrlich under the...
24 Pages(6000 words)Assignment

The current Global Economic Crisis and Globalization

...? The current global economic crisis and globalization Globalization According to Faundez p. 28), globalization is defined as the process through which the interdependence and connectivity of the world’s businesses and markets is increased. Globalization has accelerated dramatically in the past two decades following the technological advances, which have made it easier for the people to communicate, travel, and carry out business internationally. The two major recent forces, which have actually driven and accelerated globalization, are the rise and expansion of the internet connectivity and the...
14 Pages(3500 words)Essay

Current Economic

...Article Summary In the internet article “Consumer Spending Up as Incomes Rebound,” Associated Press Economics Jeannine Aversa describes the state of the spending mood of consumer this past May (http://news.yahoo.com/s/ap/20070629/ap_on_bi_go_ec_fi/economy_99;_ylt=AiZ9o6raphLtyCoPhXLPUm8E1vAI). She describes higher consumer spending as “an encouraging sign that high gasoline prices havent killed peoples appetite to buy.” She goes on to indicate that inflation has moderated, which adds to the sense of a strong economy and is a very positive sign when spending is up. According to Aversa, May “was the second month in a row that consumer spending went up by 0.5 percent.” This is a trend showing that May was not merely a fluke,...
2 Pages(500 words)Essay

The Social Impact of Economic Crises

...headed by extremists gained footage in the society. The current financial crises have to a great extent affected the society. The current credit crunch has had almost similar impact on the society. The major difference is that the interventions that are being used to solve this problem are stronger than those of the Great Depression. Predictions by the International Labor Organization indicate that more than twenty million workers may loose employment due to the current economic crisis. People are working hard and ensuring that they save enough while reducing the level of expenditure especially for the unnecessary commodities. The recession has led to...
15 Pages(3750 words)Research Proposal

Can global governance avert economic crises

...Can global governance avert economic crises? The purpose of this essay is to evaluate the fact that global governance can avert economic crisis. The paper first identifies the basic crises that could arise globally for example the crumpling of the financial institutions, banks etc. Then it moves onto discuss the measures that could be taken by the governments and the state banks to ensure that the crises can be averted in the long run. The implications of each step and each crisis are also discussed in much detail. Crises An economic crisis is defined as a long term...
7 Pages(1750 words)Term Paper

The Reasons Surrounding the Global Financial Crises

...Client’s 15 September The Great Depression which occurred in 1930 was triggered off by the sharp and unprecedented decline in the American stock exchange, the Americans wrapped themselves up around Hoover blankets they had no jobs and the unemployment rate went completely out of control. The recent economic meltdown gave rise to a plethora of economic problems; it was triggered off by the subprime crisis. This paper will shed more light upon the subprime crisis. Barrack Obama had to issue a bailout package to save the economy of America, earlier the credit rating of America was triple A but after recession it became double A which means America is less likely to pay its debt than earlier. Such news...
2 Pages(500 words)Essay

Current economic issues

... Lecturer: Current Economic Issues The book Current Economic Issues is based on the contemporary events that have shaken the global economic sphere; this in the last decade or so, from the disintegration of the new economy to the buildup of a war-based economy. This is the eighth edition to a series of well articulated and synthesized texts on American vis-à-vis global economic and political happenings. It is invaluable in its in-depth analysis of the global economics of today; this from the micro-economy to the macro-economy of the USA in relation to the global arena. Its forty six articles are critical in the debunking of the myriad of economic myths that are broadcasted by the press; while at the same time offering progressive... ...
11 Pages(2750 words)Book Report/Review

Current Event: Economic Concepts

...Saving Saving Earning goes hand in hand with saving which is the key to economic growth and provides financial security tothe person saving. Savings are incomes not spent or can also be deferred consumption and it is done through putting the money in a bank or any other safe place. Michele Lerner wrote an article on saving where she discussed the savings plans for people living in the USA in the year 2014. The research that came up with the conclusions which guided the writer in writing the article was done by the American express (AXP). From their research, 54% of all the adults that were surveyed in January 2014 had decided that saving was their number one priority throughout the year. The research also found out that...
2 Pages(500 words)Essay

GLOBAL ECONOMIC

...Global economy Global economy BUSINESS SCHOOL- LEVEL ONE STUDY Question Refer to the line chart below and discuss the possible economic reasons for those differences between the five countries The GDP per capita shows the quality of living of the people in a country and is given by dividing the GDP with the population in the country (Spilsbury, 2012). This explains why the GDP of China is high but when the GDP per capita is considered it is low, due to the fact that it has the highest population in the world. The population in UK and Australia is low allowing for them to have a high level of GDP per capita while that of Russia and Indonesia having the constant amount of population that...
2 Pages(500 words)Assignment

GLOBAL ECONOMIC

... Marx and Wolff’s economic visions Do Marx and Wolff talk about oligopolization? Both Marx and Wolff have addressed the issue of oligopolization. The later notes that major industries are being dominated by a couple of players who have managed to build a great business model that can take advantage of economies of scale. Oligopolization undermines the ability of organizations to compete. As a result, the employees may lose their jobs when their organizations are disrupted. Moreover, the latter attributes part of the responsibility for the 2008 financial crisis on the fact that only a few large financial institutions control a bulk of the global financial market. What about the expansion of the proletariat? Mark and Wolff address... the...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic What are the Marxist explanations for the current global economic crises for FREE!

Contact Us