Differences between Orthodox and Marx's View
31/12/2021-class 1
1) Capital is an eternal organ for orthodox whereas Marx regards it as a passing phase.
2) Orthodox economists argue in terms of harmony of interest whereas Marxist's believe there is conflict
of interest (struggles between diff groups of societies)
Marx says that workers just get subsistence wages despite working so hard
3)orthodox identifies themselves with the system of being apologists of capital order whereas Marx is
looking to destroy the notion of capital
4) Marx is conscious of his purpose ( aware of what they are doing) whereas orthodox aren't aware that
they are acting as apologists.
5) Marx used history intensively whereas orthodox didn't.
6) Orthodox economists are much preoccupied with minor problems whereas Marxist's don't.
Orthodox economists' models are very complex and unrealistic whereas Marx's models are very simple.
7) Marx saw the role of capitalism as it needs to draw out the productive capacity of capital. Workers
need to be looked after. There is a certain tendency to move towards crisis. Marx has seen a large army of
unemployed labour which will ultimately lead to a crisis. Falling rate of profit is another reason for a crisis.
Relationship of capital to Consumption good industry also leads to crisis. If more luxury goods are
produced, consumption falls as people hardly earn sustainable wages and therefore it is beyond their
capacity to buy.
Whereas Orthodox economists don't think about any of the above crises and their circumstances.
8) Marx in spite of talking about the crisis, he is closer to reality and suggesting a solution . Whereas in
orthodox economy they don't admit that there is a problem and hence no solutions are proposed by
them.