Capitalism and Social Change: Burke and Marx Critiques of Capitalism - Essay Example

Capitalism and Social Change: Burke and Marx critiques of capitalism Capitalism is an economic system in which the private owners control the trade, industry and means of production to make profit, it mainly stresses on individual rights to maximize profits. Capitalism has been criticized throughout the history for many perspectives. One of the major aspects is the political and social change. Several scholars believe that the Capitalism is an unjustified system that shall be replaced by the different method of production and social organization. However, some of the scholars believe that the capitalism is the legitimate system that cannot be replaced therefore it can only be attained through revolutionary socialism, whereas some believe that the structural change can exist slowly through political reform. Capitalism is a dominant global economic system that has intensified the processes of economic and globalization as eliminated the government control over the market and property rights. This paper analyzes critiques of capitalism as a vision of social and political change through the perspective of Burke and Marx. Karl Marx prospection on the elements of capitalism focuses on the capital accumulation, exploitation and wage labor. Karl Marx believed that the Capitalism itself is a vital isolation to construct a social alternative practice. According to ‘The Labor Theory of Value’ Marx highlights that capitalism is an unjust system. He believed that the capitalist bourgeois promoted false and lie “interests of the capitalist and these of the workers are… on and the same” (Marx and Engels 16). However, the interest of capitalist is to exploit workers in order to generate higher profit margins, whereas the labors are paid a little amount. As it is said that capitalist promotes the concept that the ‘growth of the productive capital’. It portrays that the production of the capital shall benefit the capitalist as it shall provide workers with employment. He criticized that in capitalist system the capitalist exploited surplus labor, that is, that the labor is not being rewards according to his efforts he put in to produce goods. It is one of the reason that the exploitation in the capitalist system it self creates socio-economic gaps for every class in the society due to which every class distinguishes it self. Marx states that capitalist have the control on means of production that allows them to exploit the other class. In capitalism, the capitalist exploit the labors on the bases if surplus labor, that is, the difference between the values of the product a labor produces and the value that is rewarded to labor. It shows that the difference that is rewarded to the worker is the place where the capitalist exploits labor that eventually leads to widen the socio economic gap between capitalist and labor class status in the society (Marx and Engels). Marx also criticizes capitalist system on ‘the under Consumption Paradox’ main objective of the capitalist is to extract the surplus from the workers in order to maximize the profits. On the contrary, the main goal of the employee is wage maximization. Marx sees this relation as a paradox relation of production with the destabilizing forces of economy, or in other words a persist conflict that does not has any tendency for equilibrium. This shows if the employer has a greater opportunity to produce surplus value the wages shall be maximized that may lower the consumption capacity of the consumers and if the employees have the upper hand, wages shall be lowered and the consumer may have the capacity to consume. Marx believes that is it a contradicting relationship of microeconomics and macroeconomics, that is, if the organization reduces the wages in order to minimize its marginal cost is rational, whereas the decline in the disposable income of the worker shall lead to shortage of aggregate demand that shall negatively impact economic cycle (Marx and Engels). The perspectives of Burke on capitalism are different from Marx; it is because Edmund focuses on the natural law. He states that the man is a creature of God, thus his virtue play greater role in the nature due to which differences in the society exist in the society. Burke has a different perspective about capitalism, he promote bourgeois politics, tradition based, hierarchical society that promotes free market, capitalist. Burkes defend the discrimination and inequality in the society as a natural law that varies with the virtue and moral of an individual. He defends capitalism with the ‘Utility and Natural Law’ it is because the capitalism and the tradition system are same. It has always been a part of tradition that the capitalist have always enjoyed higher status in the society, whereas the labor has a lower status in the society (Burke). This shows that the economic perspectives of the Burke have been supported by the rhetoric of ‘Christian Natural Law’. Furthermore, Burke states that ‘purpose and obligation are more fundamental than rights and consent’ (Burke 105). Marx theory emphasizes on the right and equality, whereas Burke states that the obligation of an individual play a greater role in the lives of individuals due to which realization and moral ends endows with the human nature, and it requires freedom to life, liberty, enjoy their right of liberty, virtue and social order. ‘Thoughts and Details on Scarcity’ is the justification of laissez fair economics in which the role of government is minimum and the workers on their own can play a greater role to transform the problem of low wage (Marx and Engels 43). These concepts were derived from the event of Berkshire where the two poor harvests during 1974-95 eventually lowered the wages of the labor, resulting in the catastrophe due to which the government intervention in the market was neglected. According to Burke, the government intervention in the market is a greater pain of economic hardship and labor is a commodity like every other. And the market is drives with the rise and fall in the demand that consequently leads to increase and decrease in the wages of labor (Marx and Engels 50). Even if the government makes an effort to raise the wages of the employee, either the price of the commodity shall increase or the demand for labor shall decrease. Therefore, the justice market price of the commodity can only be attained through the balance between consumption and cost of the production that is dependent on the demand. The wages are dependent on the market, as the market settles the prices settle on its own, when the consumer and the producer’s meet at a point due to which the ‘want’ is discovered. Further, Burke explains labor as a commodity with the ‘article of trade’ and ‘the law of principle of trade’. He states that the main problems arise when individual go beyond the natural moral law (human nature and human action) with the economics and commerce law (Burke 72, 102). Analyzing theories of Marx and Burke it can be perceived that the Burke’s perspective about the capitalism is vivid. It is because he has explained the traditions and the prevailing natural economic cycle in a realistic manner. He explains with the prevailing believes in the society that is the law of nature that has been practiced throughout the time. He states that an individual can attain status in the society through his action. It is unfair to distribute the reward equally among individuals, as some are hard working, whereas some are not. He reflects the laws of trade and commerce with the natural order function that is ‘the nature of things’ due to which inequality prevails. He states that the every individual has a right to receive right portion of rewards (wages) according to his inputs (skills and force). Works Cited Marx, ‎Karl and Friedrich Engels. The Communist Manifesto: A Modern Edition. New York: Verso Books, 2012. Print. Burke, Edmund. Reflections on the Revolution in France. Stilwell: Digireads.com Publishing, 2005. Print. Read More