Karl Marx - Critique of Political Economy
140 years ago, in the autumn of 1867 appeared, "Das Kapital" 1.Band. by Karl Marx. Karl Marx is in some way in a series with Adam Smith and David Ricardo that both the political economy, that of modern economics had founded.
particularly Adam Smith wanted to show in his works, a free market is that the only appropriate form of economic organization of free men and bring increasing prosperity for all, much better than a state-controlled economy, it could bring on the condition. Even in life of Smith, the English colonies in America were founded independently and the United States of America. A new constitution guaranteed there at least on paper, as well as all civil liberties and the freedom of Marktes.Kurz after death broke out in Europe from the French Revolution, beginning the end of the old feudal order. It was replaced by a capitalist system, with more or less free markets, where all citizens were treated as formal law. Often the civil rights was also closely tied to property and women were excluded anyway.
With the industrial revolution, the first at the beginning of the 19th century in England, but then started in other European countries broke do not like in general prosperity, but it has led many new misery, especially in the (impoverished) workers in the newly established factories. The working conditions were inhumane, very low wages and child labor are common.
The overall health of the workers was poor and mortality high. Like many of his contemporaries, Marx was appalled and outraged by these states and criticized them sharply again. But he did not leave it in a moral condemnation, but tried to explain why it was so!
The contradiction between the promised (formal) freedom and real freedom, that was the puzzle that he and his Economic - and tried to solve social theory . Marx drew to a critique of classical political economy of Smith and Ricardo , that he merits but otherwise praised repeatedly stressed.
reason enough to deal a little closer to the T heorie of the famous author, whose ideas were spread around the world and have a theoretical basis for much of the organized labor movement.
Capital, Volume 1 was the only one of him yet even completed book of his major critique of capitalism, because the other two volumes could not finish it.
you were designs that were only after his death by his friend Friedrich Engels made public.
Karl Marx (1818-1883)
why should especially this 1 Band are included. Only in exceptional circumstances, if it requires the thought process, are also contents of volume 2 and 3 with be incorporated.
intended to better understand at first but the most important conclusions of classical political economy from Adam Smith and David Ricardo are briefly:
"discovered" The Invisible Hand
Adam Smith the "Invisible Hand "the market, they work it in his book" The Wealth of Nations, described "in detail. He saw the people of egoistic drives determined, but also also on the "sympathy" for each other. This capacity for "sympathy" due to the fact that the man can always empathize with his fellow man. He was thus able to accept their fate share, so empathize and this concern is primarily for the cohesion of a society. Such a restrained self-interest, held Smith as a driving force of the people is essential! Here comes now the "invisible hand" comes in: By everyone, independently, following his self-interest, the resulting actions in their entirety, as driven by an "invisible hand" in favor of the general welfare ! This idea was truly revolutionary. The Company is not conducted primarily from above by the state, but a free society steers itself! Adam Smith had far as the first principle of self-organization ("The Invisible Hand") found and was ahead of his time! This is how the "invisible hand":
Everyone tends to have things to share with other people, the result of innate human "sympathy" for each other. An exchange takes place when both parties see an advantage in it is always voluntary! The exchange allows people to make sense of their livelihood activities necessary to divide among themselves their talents or skills learned and the results of these activities then afterwards among themselves. The exchange is therefore the basis of division of labor, which leads to much better results than each individual or each group carry out all activities necessary for maintaining life itself. If you want to find an exchange partner, you have to put yourself in each of his fellow men in order to guess what they need. The "place" of exchange is the market where buyers and sellers to meet. What changed, that is sold and will be bought are the goods. Each market participant takes turns on the role of agency and of the buyer. An exchange is concluded only if the requested goods to the exchange ends is worth more to him then has a higher utility value than the one commodity which he hergibt for it. Besides the practical value of each product but also an exchange value. This results in the individual market participants from the personal effort that was necessary for the self-produced goods and a desired product is worth. Since all market participants act, they exchange the goods to their average values work. The work value of a product depends not only from the average work time for their preparation, but also on the severity of the specially appointed working and the need for work training. The thus resulting in the market replacement value of a commodity is its price.
One problem is finding an exchange partner that offers the desired product, and asks the self-provided goods. The solution is the invention of money. Developing more money from the market most commodity, and therefore the goods can be found for the most easily exchange partners. This is the first self-produced goods merchantability of this commodity, and therefore exchanged the money. Then is usually found quickly, another exchange partner who has the desired product, and actually for the money like to assume. As merchantability goods called for by some time, the precious metals gold and silver, which are also in great demand and also stored indefinitely, easily portable and well divided. The exchange value of all goods by the money directly comparable to each other and express themselves in their respective bid prices. The "invisible hand" ensures that the goods are used to, get in sufficient quantities to those who most want. Once by the supplier adapt to the needs of their customers, so put yourself into it. Second, by adjusting the offered the desired amount. If, for example in a product to a shortage of supply, so the demand is greater than supply, so does the price of this product because the buyers outbid each other. Those who want the goods at the most get it then, because they are willing to pay the highest price. Thus, it is worthwhile, which is now offering more expensive goods. The suppliers are expanding their offerings and new entrants emerge in the market. The supply of the first to scarce goods are better and the price falls, to keep supply and demand back in balance. There is a product an excess supply, so is their price and the supplier reduce its offer or even divorced from the market. The excess supply is falling, demand and supply are similar to each other, and the released funds can be used to provide other, more important goods. The extent of division of labor depends on the size of the market for a particular product. Only a sufficiently large market to develop an extensive division of labor, as it is really worth it. This is incidentally also a good reason for unrestricted free trade also and especially among the nations!
Another good reason for free trade was David Ricardo with the law of "comparative costs" then it's worth it even for a country to drive the foreign trade compared with other countries, all products in less time and can produce it cheaper. Because if it is mostly specialized in the goods of relatively ( comparative ) major cost advantage, it can produce from these goods in the other, not so advantageous products saved time disproportionately more. In other words, it is always better his time on products to use, which can be produced in a specific time, the highest amount, rather than wasting less favorable manufactured goods. The surplus thus obtained can then be exchanged for goods that can be prepared in not so short time. In exchange you get the more of it than they had themselves can produce, precisely because it offers the exchange of goods whose production is most easily. This applies even if a country in the production of goods has a cost advantage. It is sufficient that this advantage is on the various products of different sizes. Therefore, the economically weaker countries generally benefit more from the international division of labor, and unrestricted free trade!
For illustration, an example from everyday life: An able doctor
also masters the art of baking bread to perfection, so that he is superior to all local baker. However, it is worthwhile for him to stay in the medical profession and to buy his bread (usually) in a bakery. For in the time he saves in this way for the bread baking, he deserves so much more money with his medical practice, that he can pay the bread loosely and still achieved a surplus. His comparative advantages lie in the medical science. The comparative advantages lie in the baker baking bread. If they sell enough bread for them is the doctor's bill (or the health insurance contribution) is not a problem.
David Ricardo also explained the principle of differential rent: It occurs, for example, when farmers cultivate land as tenants of varying quality. If the country is fully occupied with the higher crop yields, including leased land is of lower quality. The lessors of good land can now but a higher rent ("Rent") require, for the farmers on their land can indeed to achieve better yields with which they achieve correspondingly higher earnings. This is an invitation to the lessor, these higher revenues (at least in part) by a higher rent skimming . On the poorer land but the rent is low, the yields but also just. The lessor of the land is good, however well advised to raise the rent only so far that he only just skims the income gap between the country better and the country with lower quality. But it is even smarter, the rental rate hike can turn out a little lower, because then the tenant decides to No way for a switch to the poorer country because in doing so he would lose. For the lessor then the higher rent revenue is the long term. The difference in rents between the good, the bad and profitable, less productive land is called differential rent. Since their is no reason to value, it is in their unearned income by one!
The criticism of the invisible hand
Karl Marx acknowledges the "capital", as I said, clearly identify benefits of Adam Smith and David Ricardo , whose theories he also builds. However, He further developed these theories and subjecting them simultaneously to a fundamental criticism.
dialectic
Karl Marx used the dialectic as a method of his critique of political economy.
The term dialectic comes from the ancient philosophy and means the art of negotiation, of dialogue. First, a statement (thesis) established, then the counter-assertion (antithesis) confronts. In the discussion we will then try to find a solution, the thesis and antithesis brings together (synthesis). This is not a simple compromise, but the "abolition" of the opposition in a "greater whole". The word "suspension" here has three meanings, which must always be thought along: Breaking the purposes of disposal, pick the purposes of preservation and store in the sense of lift to lift to a higher level.
Georg Friedrich Wilhelm Hegel, the leading philosopher of the German idealism transformed the dialectic of a discussion method a development theory . While Hegel, however, went only to the development of ideas, Marx saw in the dialectic of the basic principle of all (material) their development in nature and society. The driving forces of social development and therefore also the history are contradictions in the societies that are based on contradictions in the economic and social relations of men. These contradictions make the change because the existing is, sooner or later questioned (negation). Finally, the existing order and its opposite "lifted" (negation of negation), three times the "abolition" as I said in a sense is to be understood. The new stresses on the previous opposition, but also retains elements of the old opposition. The development is not only gradual, but often in jumps. Opposites may initially build gradually, without that much happened. At some point, but they are so large that occurs a sudden, fundamental change and a new state is formed (transition from quantity to quality). An example from meteorology, the emergence of high and low pressure areas to the dialectical development process once again make clear the basis of a natural process:
The equatorial region of the earth is heated by the sun is very strong, the polar regions get contrast from very little heat. The warm air over the equator rises and expands a long way up from down. On the ground, the result is a low heat and high altitude in the height The air over the poles remains cold, however, collected mainly near the ground, so that close to the ground and a cold high in the low-level height caused
We restrict ourselves to the ongoing deliberations on the northern hemisphere.
between the high amount of hot air and the low level of cold air, there is a large air pressure difference, which leads to a correspondingly high altitude wind ( Jetstream ), which has been successful up to the floor. The Earth's rotation deflects this wind but to the east, so that a west wind zone is emerging. The cold polar air flows from the cold high at the North Pole towards the equator and is also the Earth's rotation, this time deflected to the west. Hot and cold air meet up together at the so-called Polar Front, but as they flow past each other can be no mixing. A pressure and thus temperature between warm and cold air masses is to take not. It builds on a growing pressure and temperature gradient, the height of flow begins to oscillate ( Rossby waves). The amount of flow is turbulent and thus make it to high and low pressure systems, which together then mix hot and cold air and so, finally, for a certain temperature and provide pressure compensation. The pressure and temperature contrast between warm and cold air is the negation. This contrast is due to the increasing pressure and temperature difference of the past one another flowing hot and cold air gradually larger (a quantitative change), until it finally to the formation of vortices (a qualitative change) occurs. The quantitative change of pressure and temperature hitting with the vortex formation in a previously uniform air flow so suddenly in a new quality to the high and low pressure systems, the new, the result of the "abolition" of the pressure and temperature extremes, ie the negation of negation.
For Marx is the story as a dialectical process of development in which at least two social classes are getting high in contrast to one another (negation), and this is by developing a new system with new classes (preliminary) "repealed" (negation of negation). In the new social order is in turn out a (new) contrast between the new classes, so the development continues. Only with the overthrow of capitalist society, that the "abolition" of the opposition between capitalist and working class achieved the historical development of a final goal of a society "where the free development of each, the precondition for the freedom of all "! In this communist society, there are no classes and therefore no fundamental social contradictions ( antagonisms ) more to force the transition to a new social order!
critique of commodity-producing society
starting point for Marx is to examine the goods, the "elementary form" of the wealth of capitalist society. As Smith and Ricardo Marx distinguishes the goods have a use value and exchange value. Each article has a useful utility, the material on its properties is based. An exchange value gets an object but only when he is out of production for own use, but for the sale (exchange) on a market so as to other useful items that can not be made even to approach this way. The principle "to sell to buy." Is on the market, offered for sale to the object as commodity. The exchange value of a commodity is reflected in the exchange ratio by which such goods for other goods will be exchanged on the market. This ratio in turn depends on the particular for the production of goods in the company spent an average working hours. Just saw this principle also Smith and Ricardo . Marx stressed, however, that only at the moment is where the goods are sold on the market, it really proves how much average necessary labor (abstract work) contains the product in the eyes of society and therefore how much they are really worth is. If the goods at all or not in demand in the expected level in the market, so their production was completely or partially redundant. The socially accepted on the market average working time, the abstract work involved, not the individual worked working, but is low or is even zero. In other words, the price obtained is from the perspective of the producer (producers) is too low and will reduce the amount offered for this product in future, or even move to the production of other, more sought after commodity. Developed, however, the producer, a production method that costs him less than the social average working time, he made an extra profit, or at least take over until other producers are procedures whereby the socially average working time for production of the goods and thus the exchange value of the goods now lower. The extra profit deleted again, but it is a step forward in making the product that is cheaper and therefore more readily available. The interplay of supply and demand, thus ensures nothing but the "invisible hand" of Adam Smith "behind the backs" of participants, to that the goods in the long run always in proportion to the socially necessary for their production (recognized) average Working hours are exchanged.
first on the market, the individual work that is "socially"! There
goods and their value according to Marx, so it only by free market societies. to be the first market where buyers and sellers with their expectations and desires for each other each other and exchange their manufactured goods, gives the goods in addition to the Use value and exchange value! This also is a frequently voiced criticism of Marx is completely irrelevant. Then based on the theories neglect the old labor theory of value of Smith and Ricardo and thus the key to the personal value of the goods being valued by the market demand. But Marx emphasizes precisely this: the value of the goods is socially determined. But this means that the value is also dependent on the appreciation by the buyer, so the social recognition! You ultimately decide whether to produce the goods or replacement shall socially "useful" was or not. Created
the value of goods but nevertheless the work!
Marx sees the "invisible hand" as opposed to Smith and Ricardo very critical, for he says in context of unplanned "anarchic production" that prevailed in the goods-producing (market economies) society. Only when "blind average" it all makes sense. In contrast, Marx advocated a deliberate planned social production organized and conducted by an "association of free people"! The social character of commodity production, ie the fact that people will work for each other in the 'commodity-producing society only visible when the first private, then are isolated from each other manufactured goods traded on the market because only then will other members of society in general made a contact. In a socially planned production is the social character of production, where from the outset and also generally appreciated.
The unplanned private production of goods with the first post-adaptation to social needs in the market for Marx, a dialectical opposition that is based on the internal contradictions of the product itself. Because it contains, as dialectical opposites a use value and exchange value.
critique of capitalist society
Capitalist Society added to the simple commodity-producing society but few specifics. The means of production are no longer here in about evenly distributed, so that everyone can independently bear its own products and goods to market, rather the means of production concentrated mainly in the hands of a small group of capitalists. Most people therefore have no more means of production to produce goods to sell and make a living. You will therefore have no alternative but to sell their own labor. The price for this work force is the reward. They become wage workers.
This division of society into two classes is by no means "Natural", but the result of a historical process that deprived many small producers (artisans, peasants) of their means of production. This happened, for example, the fact that farmers of large landowners were forcibly evicted from their land, or manual work in competition with manufacturers or later subject with factories.
While in the simple commodity-producing society is about to "sell to buy," is added in a capitalist society is a further principle:
"Buy to Sell". This brings us directly to the concept of capital: Marx understands value, which automatically increases said, or else a certain amount of money will be used for the purchase of certain goods (investment), these will be used and then resold, so that at the end of a larger amount of money it comes out as previously was used. It works like this:
The capitalists buy labor as a commodity by the workers and the right to acquire the work force for a period of time agreed to use according to your specifications. The capitalists thus determine the content of the work and the course of production. The worker, we make a (formal) free and equal parties is not free during working hours, for he now has to submit the command of the capitalists. His own work product no longer belongs to him, but the capitalists, but it must get rid of it later on the market. The capitalist does require the work force also means of production, it also buys. Since that time he still has no revenue, it remains nothing more than pre-finance labor and means of production with his own "the advanced" capital, or with borrowed capital (debt). Only the work of creating new values, the means of production, however only transmit their own values, created by the respective required for their production work over time to the products. The part of the capital invested in the value-added work force is called, Marx therefore variable capital, the other part that is spent on the production, which itself does not create new value, he calls constant capital. While the production is therefore added only by the workers of the value of the output value of new products for as long finished by the end product is. This value will continue until the newly created value is greater than the value of labor used in production. This results in an excess value, added value, but its size is decided after the fact, if the value is determined the product on the market by supply and demand society. The added value which the workers produce is so sometimes provided free of charge, provided that the value of the labor employed, so goes the wages. This process of appropriation of surplus value by the capitalists Marx calls "exploitation". This is the basis of the fundamental dialectical opposition between exploiters and exploited in capitalist society, between the capitalists and the working class. For wage workers, the exploitation is not always readily apparent, because the form of wages gives the impression as every work done would be paid (hourly, monthly salary, piece rate, etc.).
In reality, however, pays for the work force and this can then be used until a value reached come, because if the market cooperates.
stepped in earlier societies, the exploitation more apparent. In feudalism, the (serf) farmers working in the fields much of the work week for the landlord and the rest of the time for self-sufficiency. The appropriation of surplus value by the feudal lord was here conspicuous by sharing the work week.
The added value is consumed by the capitalist part, partly re-invested (see below) and with the rest paid including the debt with interest, rental of premises and the rent for land. This in turn will unearned income. Rent and rental payments will vary based on location and quality the premises and land from. The principle of differential rent by Ricardo (see above).
The added value is as I said in no way guaranteed. He has yet to be realized in the market. Succeed in the capitalist not a sufficient price possible, then shrinks the value together very quickly, yes it can even be a loss to come out there when the market was produced by. Furthermore, there is always the risk that a competitor in the market place a better production, thus achieving a higher added value, yet still offers its goods at a cheaper price. Then threatened with the loss of market share or even bankruptcy. This danger can only constant through the capitalist Innovation (innovations) in their own production deal. This can only be achieved if part of the surplus value is reinvested, so that the capital increase (capital accumulation). The resulting automation of production often leads to unemployment, which weakens the bargaining position of workers in wage negotiations, of course, in principle. The level of wages and thus give the value of the work force is now a part of the value of goods that have to buy the workers in order to get themselves and their families, on the other hand, of course, is the decisive importance of education. The more advanced a society is, the more generous is in general the "Shopping Cart" calculated that the workers are available. This is especially true when there are strong trade unions and workers' parties that can wrest the capitalist real concessions.
The capitalists try in return to increase their added value at the expense of wage earners. There are several possibilities: extension of working hours, wage cuts and an increase in labor productivity. Normally, an extension of working hours, as well as a reduction in wages is difficult to enforce. This increase of absolute surplus value is usually possible only with high unemployment. The increase in labor productivity through increased Use of machines is the drug of choice because it ensures that the workers produce the equivalent of their salary in a shorter time. Labour productivity increases also. With the same working time, a greater proportion of working time accounts for the real added value production. The Marx calls the increase of relative surplus value.
Capitalism gets even more into a further inner dialectical contradiction
The increase of relative surplus value through higher labor productivity can be the wage level compared with the increased quantity of goods to fall and even if the absolute level increases in wages. Since the wage-workers but also Majority of potential customers. account, demand lags behind supply, so that the value can not be fully realized. The efforts of the capitalists lead to improve their relative value thus straight into an economic crisis. The same happened also with an increase of absolute surplus value at the expense of wage earners.
The degree of exploitation of workers is given by Marx in the rate of surplus value. It sets the value in relation to variable capital, the part of the capital which is used to purchase the labor of the workers:
M = m / V
M = rate of surplus value, m = added value V = Variable capital
For the capitalist is more interesting, the rate of profit (return), the added value is the total capital investment, including the only value transmitted, but not value-adding constants capital into context
P = m / V + K
P = profit rate, m = value, V = Variable capital, K = constant capital
Karl Marx was now assume that is extended through the competition and the associated pressure to rationalize the use of machines more and more. This ensures on the one hand, to an increased relative surplus value, on the other hand, increases due to the expensive purchase of new and better Machines and the share of non value adding constant capital at the expense of variable capital, the use of only the added value brings the first place. Marx said the second effect would prevail in general, and therefore, formulated the law of the falling rate of profit. Moreover
should emerge sooner or later a uniform rate of profit in all sectors of the economy. Every time when it is achieved in an industry with a particularly high rate of profit is an incentive for capitalists from less profitable sectors hinüberzuwechseln. By then increasing competition in the particularly attractive industry where prices fall. The full realization of surplus value is no longer possible and the rate of profit falls. In the previously less profitable industries, competition is weakened by the exodus of sellers, prices go up and therefore the profit rates. In this way, the profit rates of different sectors in the same economy finally together.
Conclusion
The discovery of the "invisible hand" was opened for the first time in human history the possibility of the door to a free society of free people throw open wide.
domination of man over man was not only perceived as unfair, but was also in the case become unnecessary, because the free market was at least theoretically capable of cooperation between free people on a voluntary basis, as sure of itself even without a government.
And indeed, the rule of the feudal nobility, serfdom and the guild system, with its confining rules were gradually overcome.
But the hope for real freedom came true, unfortunately for only a few!
Most stayed, or were destitute and had to pay workers as they are now selling their own work force belonging to the new ruling class of capitalists who were gradually becoming richer. The employment contract they made still emits as (formally) free labor to the capitalists, but in reality they had no choice but even the worst Working conditions to accept, if they would not starve. The child labor was widespread. During working hours, which already constituted the main part of the day, they had to submit to the will of the capitalists perfect. No trace of freedom! The misery of the new working class was really indescribable. and was developed by Marx in Capital, described impressive. Karl Marx pointed out not only the merit to these conditions, but they also have to explain. "Das Kapital" of Marx was to improve the theoretical foundation of the slowly growing strength labor movement, which succeeded in protracted battles and deaths as the situation of wage workers, some of which even a legally acquired considerable wealth. Due to the growing income of workers increased the general purchasing power, and so was the "invisible hand" of the market function better.
Nevertheless remains true today: In the final analysis counts only the willingness of capital, which must submit to the workers. Their fate remains determined by others, even under otherwise favorable conditions. All social benefits and thus the real freedoms of the workers are still at any time for discussion, if they conflict with the profit motive. In addition to rule even today in the factories, many countries states, so as Marx in his time (almost) vorfand everywhere.
Karl Marx remains so to date!
Karl Marx saw the "invisible hand" as described above for reasons of principle very critical and would replace it with a conscious democratic planning in a free society. Private ownership of means of production should be abolished and become self-governing common property. Marx overlooked this but I think the freedom-promoting properties of the "invisible hand". Since it is based solely on voluntary principle, in principle, the use of force and violence, not a means to success. This promotes tend friendly, respectful of the people manners. If a sufficiently even distribution of income is given, can the "invisible hand" the wishes of minority groups come into play, a patronizing, even by a majority is basically impossible! This danger is but even with a model of democratic planning, because the majority can overrule the wishes of the minority easy when you do not like what an intervention would be inappropriate in the personal freedom of the minority. The "invisible hand" ensures the other hand, self-determination, which is better than just participation in the personal affairs. Whenever people work directly and social decisions are made, however, guarantee the democratic Participation the greatest possible freedom for all. This ought to apply just to work in the factories, where many spend usually the most of her life.
In this context, very interesting: Karl Marx saw self-managed enterprises, even within a capitalist society as a major step forward to:
"This is the abolition of the capitalist mode of production within the capitalist mode of production itself and therefore a self-abrogating contradiction to first glance as a mere phase of transition to a new form of production. ... It is private production without the control of private property. "
Karl Marx, Das Kapital III, MEW 25, 454th
"We recognize the cooperative movement as a driving force to transform the present society, based on class antagonisms. Her great merit is to practically show that the existing despotic and poverty engenders system of subjugation of the work can be displaced by the capital by the republican and beneficent system of the association of free and equal producers. "Karl Marx, demands the ILO, MEW 16, 195 Would self-managed enterprises
in a free market economy, perhaps an alternative?
Jens Christian Heuer
Literature:
"Das Kapital" by Karl Marx, Dietz-Verlag, Berlin
Karl - Marx - dare Forum ( http://www.marx-forum.de/ )
