THE SIGNIFICANCE OF MARXISM IN
THE ERA OF CAPITALISM
LANCASTER UNIVERSITY
IFECHUKWUDE STEPHANIE ONYIA
Marxism’s Significance In Era Of Capitalism
The importance of Marxism was as a result of the introduction of capitalism. Capitalism is a socioeconomic system of government were the government does not play an active role in providing equal
opportunities for everyone in the state. The people had to come up with innovative ideas to find a place
for themselves. Unfortunately this led to the existence of the class system, the exploitation of the
working class and the rich only getting richer. With all this in play socialism was found. In contrary to
capitalism, this socio-economic system was centered on the state. They played an active role in
providing equal opportunities for everyone. During this period there was no private ownership of
property and all means of production belonged to the state. Karl Marx went further to create a formula
that would stop any form of exploitation. During the time of capitalism, the working class were known
for giving a certain percentage of their pay to the elites (employers). This ideology was backed up by
force and used in the yester years of the Soviet Union, Ghana and China. That is the socio-economic
system of communism or the Marxist Leninist Communism.
Marxism being completely different from capitalism left some kind of significance in the era of
capitalism. The first being reducing the level of exploitation of the working class. Marx noticed that the
working population of the elites were being manipulated and used. With the creation of the Marxist
formula brought about and insight to the methods the capitalists used in exploiting the middle class
(Gurley, 1984). They made use of the surplus method. A certain percentage of their working fee would
be deducted and circulated round the economy until it reached the hands of the working class. The
capitalist system according to Marx was a commodity production system. This was the pricing system
used at the time. “Capitalism is a commodity production system characterized by the existence of a
surplus product which assumes an exchange value or money form and is appropriated by producers in
relation to the exchangeable worth of inputs advanced to undertake production (H, 2011).” The laborers
were also not paid fairly. Simply meaning that the level of work or effort they put into production did
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Marxism’s Significance In Era Of Capitalism
not match their pay at the end of the day. The statement the rich getting richer and the poor getting
poorer may have been originated with all these in play. At the end of the day Marx made a statement
about the working class wallowing in poverty and others enjoy the increase in the level of wealth around
them (Gurley, 1984).
Karl Marx and Frederic Engels identified the three conceptions about the state. The first being that
the state was seen as an instrument in curbing conflict in the society. The state as a dominant factor in
class oppression. Finally, the state as a resigned to the capitalist system (Dyer, The Conception Of The
State In The Philosophy Of Mark And Engels, 1972). When coming up with the communist system
Marx had the idea that by ensuring the state was fully active in the economy. The issue of classism and
exploitation will stop. Out of the three conceptions, the second and third were the most condemned by
Marx. This was because they stood against what he saw for the society. He was of the belief that such a
powerful machinery shouldn’t be controlled by society but the other way around. The state should be in
full control of all the resources and factors of production. This will allow for equal distribution of
resources to individuals. He claims that the state knows what is best for its people and that individuals
would look out only for themselves. Engels said “The society that will organize production on the basis
of a free and equal association of the producers will put the whole machinery of state where it will then
belong: into the Museum of Antiquities, by the side of the spinning wheel and bronze axe (Engels,
1902)”. This was stated in the communist manifesto, thus making it clear that that conception of the
state as a parasite in a communist state and an instrument class oppression would seize to exist (Dyer,
The Conception Of The State In The Philosophy Of Marx And Engles, 1972). The state being active and
making use of its legislative functions is a major significance in the era of capitalism. Considering the
state had no role that was active in the era of capitalism.
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Marxism’s Significance In Era Of Capitalism
The one thing Marxism is known for is togetherness, oneness and a lack of class in society. “The
cooperative movement was one of the first social movements of modern times, with roots at the
beginning of the industrial revolution, and was an integral part of the early labor movement” (Curl,
2010). This movement was believed to have been founded by Robert Owen. A once welsh manufacturer,
who is believed to be the father of the cooperative movement (Dowd, 2021). It is a movement that the
corporate firms have tried to manipulate but have failed drastically. It is also important to note that Marx
praised this movement in a lot of passages. He saw cooperation as a new way of production. “There was
in store a still greater victory of the political economy of labor over the political economy of property.
We speak of the co-operative movement, especially of the co-operative factories raised by the unassisted
efforts of a few bold “ (Jossa, 2005). This was a statement by Karl Marx, which is simply saying that in
cooperating with one another, letting go of the class system, the exploiting and oppression. The state and
all its citizens will thrive. This was also a way in which he could stop wage labor which is practiced in
capitalism. Working together the methods of production being owned by no one and everyone, gives a
certain advantage. The advantage of economy democracy. Economy democracy does go in hand with
political democracy, which Marx is against (Jossa, 2005). It still does not deny the fact that with this
movement in play power is taken from the capitalists and they would no longer be in control as they
own nothing. Cooperation is a key factor to Marxism. In modern days it can be agreed that that a state
cannot fully be Marxist. Having cooperation as a method in the state would lead to a certain level of
growth and peace that was admired by Marx.
Significance stands for importance and in this essay the importance of Marxism has been
discussed. It brought about cooperation, led to the finding of a method that had been used in
exploitation, reduced the level of exploitation of the working class, tried to abolish the class system and
so on. Marx was of the of the opinion that human beings are not selfish or bad by nature but it is the
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Marxism’s Significance In Era Of Capitalism
environment that makes them that way. The capitalist system is an environment where an individual has
to find a place for themselves. It is like a war were only the wealthiest will survive. A situation where
everyone wants to be in control or have power of the resources and the state. Thus benefitting from it
while leaving others to fend for themselves. In conclusion, the most significant thing Marxism has to
offer is the fact that it proves that an environment really is what builds the character of an individual. In
an environment where everyone has equal ownership of everything and cooperation thrives. The citizens
of that environment will see no sense in greed and selfishness.
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Marxism’s Significance In Era Of Capitalism
References
Curl, J. (2010). The Cooperative Movement in Century 21. A Journal of Radical Theory,Culture and
Action, 12.
Dowd, D. F. (2021). Robert Owen. Encyclopedia Britannica, 1.
Dyer, P. W. (1972). The Conception Of The State In The Philosophy Of Mark And Engels. Journal Of
Thought, 148.
Dyer, P. W. (1972). The Conception Of The State In The Philosophy Of Marx And Engles. Journal Of
Thought, 153.
Engels, F. (1902). MESW II. In F. Engels, The Origin of the Family, Private Property and the State (p.
322). Chicago: Charles H. Kerr&Co.
Gurley, J. G. (1984). Marx's Contributions and their Relevance Today. Jstor, 110.
H, N. (2011). Marx's Theory of Price- Capita;ist Commodity Production. In N. H, Marx's Theory of
Price and it's Mordern Rivals (pp. 29-30). London: Palgrave Macmillan .
Jossa, B. (2005). Marx, Marxism and the cooperative movement. Cambridge Journal of Economics, 4.
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