Marx and Smith's Views on Capitalism - Essay Example

Task: Philosophy Essay Introduction Adam smith writes in support of capitalism. While Karl Marx writes to the contrary of Adam. Capitalism idea is more based on division of labor and quality and efficient production. According to Marx, the capitalist’s idea works to the disadvantage of the laborer. Instead, he views the overall production to be because of human’s effort and can be generalized for the community rather than individualizing. He father argues out that the increase of value is enhanced by the human’s effort. Thus, capitalists may take advantage and buy the labor. Smith’s application of Locke’s theory Capitalism as viewed by smith using the lock’s theory to have benefited the society through the field of commerce, making the society more organized and well balanced the self interest of individuals makes them to work for the chances available. His reasoning in line with locks theory in that incase there was equality in distribution of the collective wealth to the laboring society then, the effect would not still be effective enough to provide material comfort. He, therefore, views capitalism to be better for the laboring society in general by rewarding the efforts of the productive labor. This is done as per the productivity of the laborer hence encourages more productivity. Reasons for investing in productive in productive labor under capitalism Productive labor is referred to be the labor, which adds value to the subject of undertaking. It is advisable to employ those who add value more than those who add no value to the subject in order to be rich. Everyone is maintained by the labor of the society; thus, productive labor gives a bigger hand in these efforts. The produce of the land and the efforts of the productive labor directly or indirectly cater for the people’s maintenance thus becomes the basis of capitalism, since through this way, the capital is replaced. What capitalists should do to increase the productiveness of labor? The capitalist should ensure division of labor among the community members and increase employment of productive labor this will ensure a general effect of understanding the general business of the society better. The division of labor eliminates the effect of using a small number of employees by a manufacturing firm to undertake different duties in different places. Rather, more employees are employed in different sectors thus effective overall performance. The various laborers should be assigned to perform duties that they are used to and have skills in instead of letting them become players in all fields. Division of labor and its effectiveness Division of labor improves the productive power of labor. It improves judgment and skill application hence an overall effect of better performance. Work that could be carried centrally or by a single operator is divided to several others hence becomes a process. Proper division and a combination are required to realize this more so in the manufacturing sector. It is also applicable in many art sectors and the agricultural sector. However, it may not so much be made distinct in some of these sectors. For instance, the business of the corn farmer and the grazers. In this way, it has increased the productive power of labor. The number of commodities produced is higher than when production is done otherwise. In this, specialization of individuals contributes to the improved performance. It also saves time despite pulling then concentration of the workman who can always concentrate best in a single thing rather than a wide field of operations. Negative implications of capitalism and remedies It encourages division of labor which implies that more employees are to be hired by a manufacturing company. It looks more into the interest of the number of commodity produced rather than the benefits achieved per commodity. It is also not possible to completely separate some businesses from each other. Employing laborers continuously maybe a challenge due to change in season more so in the agricultural sector. Comparison of ordinary citizens under capitalism with those under feudalism Commerce of the towns improved the countries through ready markets that provided revenues and cheap availability of commodities in their countries. Spending of huge amounts by the merchants ensured that they reaped profits. Commerce and industry also created good order and better governance, liberty and security of individuals. For feudalism, there is much dependence and no equivalent to give in return thus total command by individuals who are rich. Various examples are given of countries that suffered through this kind of society organization Comparing these two, smith puts it that the capitalist nations; there is quality achievement in production since there is specialization. All the benefits of division of labor are realized. Smith’s analysis on the long term effect of capitalism. According to smith, capitalism may have effects on the society that practices it. These may include raised levels of production, high quality production as a result of specialization due to division of labor. The net effect in the long run is a society with efficient production and a stable economy. Otherwise, the community suffers because the capitalist accumulates wealth thus gaining total control of the economic and political ground. This may not be positive in any way to the community. Marx’s theory Max analyses a commodity as something that satisfies human wants and an accumulation of it creates wealth. The standard of measure, therefore, must be established. In order to make a commodity useful, some amount of labor must be involved. The value, however, changes with time and place. Commodities are also exchangeable to defined extent and quantity. The exchange value of any commodity must be to as given standard as per the effect of the utility obtained. All commodities bring about satisfaction as required as a result of human effort. This human labor must also be catered for in the reward collectively as human labor. The commodity and labor generally have value these maybe realized independently. Labor is quantified by time. Thus, the total labor power of a society; therefore, equates to the sum total values of the commodities produced by that particular society. The labor and commodity remains constant while the productiveness vary. Negative effects to the laborers’ in the manufacture under capitalism Normal time required for production of a commodity maybe reduced by introducing machinery. Time considered as the major value in production of commodity; therefore, reflects that collective time of producing a given number of commodities gives the overall value. Productiveness of labor changes and affects production. This is also affected by the average amount of skills. Thus, the collective skills play part more than the individual effort. Labor only counts after utility is derived. Commodity has both the use value and exchange value. The person who creates value also must not be ignored as he results in the overall economy of the society. The quantity of labor may differ this on a keener view is disadvantageous to laborers in a capitalist society. How capitalist form of exchange leads to “commodity fetishism” From the analysis of two commodities, the value of a commodity depends on the nature of the commodity value, which ultimately is the origin of the mode of the expression for exchange. The use value is a product of labor which is to an extent undermined under capitalism. Views that goods result from human labor or have a capability of satisfying human want both revolve around the human. Quantity and quality production require time and human efforts. This labor assumes a social form. The relation of value and labor applied in a commodity utility, therefore, is derived as a result. How buying and selling of labor power enables exploitation of the laborer by the capitalist Money is used to purchase, and therefore, act as capital. This can be used to buy the labor power as such as to create value to commodity, which, on the other side, is valued in monetary terms. The overall consequence, therefore, is a benefit to capital holder, while the capitalist to create more hence no much benefit for the laborer uses the laborer. The owner of the capital consequently sells the commodity to the laborer not considering any other factor other than buying and selling of the commodity. This in itself is similar to slavery. Conclusion From the above analysis by both Marx and smith, capitalism is seen to major more on production than the labor time and the laborers. Capitalism, however, looks into the quality of production and accumulation of wealth by the capitalist. In the process of division of labor, production quality is improved as the laborers specialize. The productive laborers are seen to be finest players in a capitalist society. This, however, is disadvantageous to the laborers since the commodities they add value on, are sold to them on a plain ground with the rest of the people in the community. Read More