Karl Marx was a German philosopher, theorist and economist whose theories have transformed the economic world (Hosfled, 2012). He is well known for his contributions in capitalism, socialism, and communism. He was born on May 1818 in Prussia, Germany. As a child, he was less influenced by religion and this could be the main motive that instigated his agitation for social change (Hosfled, 2012). The Jewish background rather exposed him to discrimination and prejudice and this may have had an impact on his view of religion as a whole. His early life described by conviction, expulsions, and drunkenness (Hosfled, 2012). However, Marx’s introduction to Hegel’s philosophy was the turning point of his life since he was able to complete his education.
Marx has made tremendous contributions in economics. His major contribution based on the role that labor plays in developing an economy (Hosfled, 2012). His approach is very much critical of the classical approach where specialization of labor helps in pushing down the wages and the true cost of labor is not reflected in the value placed on the goods. According to his contributions, the large number of unemployment is normally contributed by the excessive application of capitalism where labor is only seen to have a subsistence value (Hosfled, 2012). This is manifested in the early days where capitalists could hold laborers to work for extra time so as to earn a surplus value. This is one notion that Marx sees as not the best way of growing the economy.
Delegate your assignment to our experts and they will do the rest.
The theory of capitalism is amongst his works where he focused more on the way capitalist exploited workers. This theory is based on a classical approach which emphasizes the true value of labor. He makes it clear that in a production process the costs of land and capital should not be considered separately; rather the cost of labor should be included so that the value gained from the process should be replicated to the workers. He argues that the efficiency of any process involves the commitment of the workers (Sperver, 2014). Marx believes that investment on the workers provides a continuous development of capitalists even in the event of the high competition. He developed this theory by making assertions based on the economic crisis experienced during the 19 th century. In the booming period where competition is intense, there will be a shortage of labor which forces organizations to raise its value. This provides excess pressure on the capital return ratio. In such a situation he argues that capitalists will automate the production process by investing in sophisticated machines so as to meet the consumer demands (Sperver, 2014). However, the more laborers are replaced in the production cycle the less the good are demanded since automation of the system will lead to a surplus production in the market thus plunging the society to an economic crisis. Marx also believed that the labor theory of value is essential in determining the price of goods in the market (Sperver, 2014). In this theory, he described the value of a product to be depended on the number of labor hours required to produce it.
Marx made so many contributions in the field of economics but his theory of capitalism remains the most influential theory that has shaped the economy as a whole. His assertions came to reality during the 1990 technological boom which failed terribly (Sperver, 2014). This move has forced many economists to value the role played by workers and assess the impact that automation has on the economic returns on capital. However, his theory of capitalism has raised questions on the criteria of distribution of wealth since in the modern world; capitalist societies are even acuter than in the time of Marx. However, his works on capitalism and labor theory make a lot of sense (Jones, 2016). These theories have helped in shaping many lives from an economic point of view.
Marx’s theories influenced most studies done on the subject by drawing insightful relationships that had not been uncovered (Jones, 2016). Marx critiqued Smith and Ricardo by helping them realize that their concept was specifically focused on capitalist institutions and not innate attributes associated with the human society. According to this philosophy, he claimed that profit is the value added by workers in a production cycle and not in the perspectives of the paid out wages (Jones, 2016). This belief motivated him to develop the theory of surplus value thus influencing the works done by Smith and Ricardo.
Marx legacy stretches far to other disciplines and not just economics. His legacy is manifested through the work of other economists who came after him (Jones, 2016). He is a testimonial of far-ranging intellect as it can be seen in the recent works by Maurice Dobb among others who have built their work based on Marx view of the value that labor force has on the production cycle (Jones, 2016). His legacy is attributed to the wide opposition that capitalism has received over the years. His legacy can also be manifested by his struggle to end communism which was successful in 1980s (Jones, 2016). Karl Marx received no recognized award in his lifetime because of the sheer relationship he had with the society. His theories and ideas started to be adopted after his death that’s when his legacy was recognized.
Karl Marx’s parents Heinrich Marx and Henriette Pressburg gave birth to him on 5 th May 1818 in Germany in Trier at a place called Bruckengasse. When his oldest brother Moritz died, he became the first-born son among the other children; Caroline, Emilie, Louise, Sophie, Hermann and Henriette (Jones, 2016). Hugo Wyttenbach, who was the principle of Trier High School, was a friend to Marx’s father thus the father enrolled him in the school in 1830 (Karl, 2015). He later joined the University of Bonn where he studied law and philosophy and was later transferred to the University of Berlin by his father, because of his poor performance. He met his spouse Jenny Von Westphalen and seven years later they got wedded officially and thereafter, they gave birth to six children; Eleanor, Laura, Jenny, Edgar, Henry and Eveline (Jones, 2016).
Marx first developed a theory on historical materialism while in Brussels, this happened while he was writing The German Ideology inspite of him not having an ideal publisher. These book together with “Theses on Feuerbach” were published at the same time after his death. The concepts that Marx developed were used by communists who later created a Communist League (Jones, 2016). In addition, he wrote “Manifest der Kommunistischen Partei” translated to English as Manifesto of the Communist Party in 1847 which was later published in 1848. Marx was deported from France after being barred from going to Belgium thus, he decided to seek refuge in London after Prussia failed to accept him. He stayed in London until he died since Britain declined to give him citizenship (Karl, 2015).
Marx became a journalist in London and was heavily reinforced by Engels inspite of him not getting any salary as he worked for the “New York Daily Tribune” for 10 years that is from 1852 to 1862. He also supported the Communist League by helping them form a new head office in London after creating the German Workers’ Educational Society (Jones, 2016). In 1867, the first volume of Das Capital was printed as Marx had gradually become engrossed to the theory of entrepreneurship and economics (Karl, 2015). After his death, Engels collected and printed two volumes which he had not finished since he spent most of his time writing and reviewing his scripts to add onto the first volumes. In 1883, Marx met his death on 14 of March as a result of pleurisy and thereafter, in 1954, a saying from the Theses on Feuerbach and The Communist Manifesto’s last line which states that “workers of all Lands unite” was carved on a stone and put in his grave (Jones, 2016).
Karl Marx believed that a person’s social life was influenced by their social class thus, being the first social expert to emphasize on social class. Marx stated that the one who managed the basic resources required to yield the essential needs of a person, was the main determinant of their social class in the hierarchy (Jones, 2016). He further explained that the people who were in the lower class in the hierarchy, were the ones who lived in suffering and poverty as the ones in the upper class lived in pleasure and contentment. Marx discovered that capitalism was the reason why most people were in need while there were plenty of resources in the world. He explained that the people of the minor division worked for many hours for low wages in the industries or on the land that was managed by the people who were in the upper class (Jones, 2016).
Karl Marx hoped that he would witness the poor people who were determined to work to become financially stable and join the upper class in the social classes however, things did not go as he thought. He was against the scheme that involved the upper classes being exchanged with individuals who were entrepreneurs and were commonly known as bourgeoisie, while the lower class was exchanged with the individuals who worked hard to be paid and were referred to as proletariat (Karl, 2015). He claimed that equality could be achieved if capitalism would be exchanged with a communist scheme which would later eliminate hostility and the social classes. Capitalism would result to more isolation of the lower-class workers thus, the affected individuals would feel inferior as a result of the alienation (Karl, 2015).
Karl Marx’s theories had a great influence on economists in spite of most people doubting his work. In most countries, his ideas are applicable currently even if a number of the socialist countries have collapsed in the last few years. He claimed that the relations and ways of production are the most useful elements that determined how a society was managed (Karl, 2015). Relations involved how people associated with the ways of production while means of production involved the essential resources that were required to produce goods. He further added that when means and relations of production were joined then they would be known as modes of production. Marx claimed that capitalism was not efficient as it involved one class of individuals taking advantage of another class of individuals usually those of the lower class thus, it would not stay for too long. The wealthy would take advantage of the poor individuals by blackmailing them but later the poor would learn about their situation and improve their state and begin to manage the ways of production. This would promote peace and equality among the people (Jones, 2016).
Marx feared that as the company improved, the lower class would feel even more isolated as he claimed that the main reason why the workers would be taken advantage of, was capitalism. People still argue on whether a Marxism society ever came to existence as others question his ideas as he concentrated on the differences between the social classes forgetting to focus on the repercussions of a relatively poor class developing (Karl, 2015).
Karl Marx’s contribution to socialism and communism was highly recognized and has been useful for a very long time. Before Karl Marx came up with these theories, the minor class individuals were exploited and would later rise and overthrow the existing government that was unethical, he also established an eternal system of equality and peace (Karl, 2015). Many countries including China, North Korea and Vietnam have proved to have gotten their economic concepts from Marx. His scripts and concepts are well known by the youth all over the world. In 2016 on August 21, Marx won a Nobel prize in economics for his book Das Kapital which contributed to the promotion of the economic sector (Karl, 2015).
Marx has highly contributed to promoting peace and equality in the current society as he was strictly against exploitation of the poor people by the wealthy and the formation of social classes in the society. It is evident that his ideas are very useful in deriving economic theories in the society (Jones, 2016).
References
Hosfeld, R. (2012). Karl Marx: An Intellectual Biography . New York: Berghahn Books.
Jones, G. (2016). Greatness and Illusion . Cambridge, MA: Belknap Press: An Imprint of Harvard University Press.
Marx, K. (2014). The Communist Manifesto . New York: International Publishers Co.
Sperber, J. (2014). Karl Marx: A Nineteenth-Century Life . New York: Liveright.
