Marxs Labour Theory of Value - Assignment Example

Marx makes people keep on negotiating for better terms and the reason behind the labor movement is true to Marx’s ideas on alienation (Schultz).

The theory of Value

The theory of value explains social relations, materialism, and production. Therefore, people social interaction in the exchange of goods and ideas comprises of economic processes envisioned by Marx. Marx argued that people cannot produce all the products they need, exchange of goods helps people get what they do not have in the market. The exchange involves the transfer of commodities for money or other products.  The market system comprises the social relation Marx is talking about (Rubin’s).

Labour Theory of Value

Marx argues that the source of value is the input of labor (Schultz).  However, because workers produce for the capitalists instead of for their own consumption the commodities become independent once they are taken into the market. This is the process that Marx refers to as fetishism of the commodity (Marx’s Labour Theory of Value). Laborers are exploited when their wage is less than the value of the product they produce. He refers to the extra amount taken by the capitalist as the surplus value (Marx’s Labour Theory of Value). Marx fetishism refers to the detachment of labor from the complete products which acquire an inherent value. The capitalist society detaches the cost of labor and makes products so expensive more than they really cost. This has the effect of giving power to the product that has been processed by man.  The capitalist society, therefore, attaches value to everything that we do and think of in our day-to-day activities (Schultz). I agree with Marx on the labor theory of value because people are disadvantaged in their efforts to earn revenue.

Marx on the theory of Accumulation

According to Marx, even the capitalist is never satisfied by the gain they get after taking profit and the surplus-value. The profit and the surplus-value are added to the existing capital. The habit is to increase the maximization of profit in all human spheres (Marx's theory of primitive accumulation).

The dialect of materialism can be used to explain human behaviors and the constant change of economic setup. The theory of production can explain the realities of emotions of human activities. Though many scholars have disapproved of Marx’s ideas on materialist dialectic, his theoretical perspective explains the nature of capitalism while disregarding his communist ideals of a utopia world (Dialectical Materialism).