Karl Marx Development Theory

Background
Karl Marx was born in 1818 and completed Ph.D at the university of Jena at the age of 23. He
involved in radical journalism and settled in Germany, Belgium and France. In 1849 he settled in England for the rest of hBackground Karl Marx was born in 1818 and completed Ph.D at the university of Jena at the age of 23. He involved in radical journalism and settled in Germany, Belgium and France. In 1849 he settled in England for the rest of his life. His great work Das Capital was published in 1867. He is great socialist thinker. Assumption of the Theory (1) There are two principal classes in society: Bourgeoisie and Proletariat. (2)Labor is the main source of value generations. (3) Factors of production are owned by capitalist. (4) Labor has inherent tendency to produce above subsistence. (5) Wages of worker are determined at subistence level. (6) Capitalist exploit the worker. (7) There is inevitable demise of the Capitalism in the world. Some Propositions of Marxist Economics * Accumulations of capital increases unemployment(labor reserve army). * Lower wages for employed and unemployment increase misery. Increases misery create conditions for successful workers organizations. Worker organizations overthrow the capitalist social class. Marx's stages of growth and Social Change It is based on materialistic interpretation of history. Historical events are result of a class struggle in a society. The main cause are ' mode of production' ( the arrangements of production) and the ' 'relations of production' ( class structure of society). Marxist Development Theory * A materialistic interpretation of history. * Mode of production determine the entire social, political and religious ways of living. * Historically society has passed through five different stages: (a) Primitive communism (b) The Slavery stage (c) Feudal Stage (d) The capitalist stage (e) The socialist or communist stage (1) Primitive communism * First stage in evolution of society, use sticks and stones by man, product produced shared equally, just subsistence, relation of production was common owernship of means of production, Barter system economy. * Clan began to break into families, institutions of private property come into existence, in the later period some people began to produce more than subsistence. * Above subistence production leads to appropriation of the surplus produce and exploitation of other. * This paved the way for the emergency of the slave society. (2) The Slavery stage * Slave owner owned both means of production and produce. * Let to develop slave owing cities like Rome and Greece. * Ore mining and smelting of metal began. * Canals, water raising devicies were used to irrigate land. * With growth of cities commerce and trade developed internal and external. * In this society, there was subjugation and exploitation of slaves by few owners. * With the passage of time slave society class structure led to conflict. * Entire structure of slave society was overthrown and on its ruins there rose feudal system. (3) Feudal Stage * Feudal lords owned the land and serfs as the main means of production. * Serfs worked liked slaves for feudal lords. * But serfs could own land, livestock etc. * State grew on the strength of feudal lords who had their own army. * There was much progress in this society. * Agriculture developed ; water mill and wind mills. * Small handicrafts workshop gave place to manufacturing units. * Discovery of new countries like America. * Feudalism led to class struggle between serfs and feudal lords. * The revolution replaced feudal relations of production to capitalist relations. (4) The capitalist stage * In this stage capitalist own the means of production. * The Worker is free to work for any capitalist. * Labor doesnot have any means of production * Labor sells his labor power. * According to Marx, the value of labor power is same as the value of commodities. * It is the unique characteristics of labor power to produce more than that is needed to produce wage goods necessary for his own. * The excess of total produce over subistence produce is termed as surplus value - capitalist profit. * To increase this profit capitalist introduce labor saving or capital intensive production. * In next stage there is concentration of capital in big enterprises. * To earn high profits labor saving machines are introduced. * The process of replacing labor by machines creates the industrial reserve army of labor. * Capitalism leads to a class struggle between proletariat and bourgeoisie. (5) The communist or Socialist stage * The last stage is communism brought by proletarians. * Dictatorship of the proletariat is established. * Each individual will contribute to national product and receive according to his needs. * But followers of Marx refer means of production owned and regulated by state. * There is no class struggle. Criticisms of Karl Marx Theory 1) Surplus value unrealistic. 2) Technological progress help to increase employment. 3) Finally tendency of profit is not correct. 4) Marx couldnot understand flexibility in capitalism.is life. His great work Das Capital was published in 1867. He is great socialist thinker.
Assumption of the Theory
(1) There are two principal classes in society: Bourgeoisie and Proletariat.
(2)Labor is the main source of value generations.
(3) Factors of production are owned by capitalist.
(4) Labor has inherent tendency to produce above subsistence.
(5) Wages of worker are determined at subistence level.
(6) Capitalist exploit the worker.
(7) There is inevitable demise of the Capitalism in the world.
Some Propositions of Marxist Economics
* Accumulations of capital increases unemployment(labor reserve army).
* Lower wages for employed and unemployment increase misery.
* Increases misery create conditions for successful workers organizations.
* Worker organizations overthrow the capitalist social class.
Marx's stages of growth and Social Change
It is based on materialistic interpretation of history. Historical events are result of a class struggle in a society. The main cause are ' mode of production' ( the arrangements of production) and the ' 'relations of production' ( class structure of society).
Marxist Development Theory
* A materialistic interpretation of history.
* Mode of production determine the entire social, political and religious ways of living.
* Historically society has passed through five different stages:
(a) Primitive communism
(b) The Slavery stage
(c) Feudal Stage
(d) The capitalist stage
(e) The socialist or communist stage
(1) Primitive communism
* First stage in evolution of society, use sticks and stones by man, product produced shared equally, just subsistence, relation of production was common owernship of means of production, Barter system economy.
* Clan began to break into families, institutions of private property come into existence, in the later period some people began to produce more than subsistence.
* Above subistence production leads to appropriation of the surplus produce and exploitation of other.
* This paved the way for the emergency of the slave society.
(2) The Slavery stage
* Slave owner owned both means of production and produce.
* Let to develop slave owing cities like Rome and Greece.
* Ore mining and smelting of metal began.
* Canals, water raising devicies were used to irrigate land.
* With growth of cities commerce and trade developed internal and external.
* In this society, there was subjugation and exploitation of slaves by few owners.
* With the passage of time slave society class structure led to conflict.
* Entire structure of slave society was overthrown and on its ruins there rose feudal system.
(3) Feudal Stage
* Feudal lords owned the land and serfs as the main means of production.
* Serfs worked liked slaves for feudal lords.
* But serfs could own land, livestock etc.
* State grew on the strength of feudal lords who had their own army.
* There was much progress in this society.
* Agriculture developed ; water mill and wind mills.
* Small handicrafts workshop gave place to manufacturing units.
* Discovery of new countries like America.
* Feudalism led to class struggle between serfs and feudal lords.
* The revolution replaced feudal relations of production to capitalist relations.
(4) The capitalist stage
* In this stage capitalist own the means of production.
* The Worker is free to work for any capitalist.
* Labor doesnot have any means of production
* Labor sells his labor power.
* According to Marx, the value of labor power is same as the value of commodities.
* It is the unique characteristics of labor power to produce more than that is needed to produce wage goods necessary for his own.
* The excess of total produce over subistence produce is termed as surplus value - capitalist profit.
* To increase this profit capitalist introduce labor saving or capital intensive production.
* In next stage there is concentration of capital in big enterprises.
* To earn high profits labor saving machines are introduced.
* The process of replacing labor by machines creates the industrial reserve army of labor.
* Capitalism leads to a class struggle between proletariat and bourgeoisie.
(5) The communist or Socialist stage
* The last stage is communism brought by proletarians.
* Dictatorship of the proletariat is established.
* Each individual will contribute to national product and receive according to his needs.
* But followers of Marx refer means of production owned and regulated by state.
* There is no class struggle.
Criticisms of Karl Marx Theory

1) Surplus value unrealistic.
2) Technological progress help to increase employment.
3) Finally tendency of profit is not correct.
4) Marx couldnot understand flexibility in capitalism.