Karl Marx - Winthrop

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KARL MARX
E C O N O M I C A N A LY S E S – C H A P T E R 4
ECONOMIC ANALYSES
• Marx’s theories of economy and society
are presented primarily in Das Kapital
• Theories continue to influence sociology
BASE—SUPERSTRUCTURE
RELATIONSHIP
Ideological Superstructure
religion, politics, the state, culture, art, the family
Economic Base
(eg. Feudalism, capitalism, communism)
3
BASE-SUPERSTRUCTURE:
CAPITALIST IDEOLOGIES
Choosing to Marry for Love
Democratic Liberties
Religious Freedom
Belief: MeritocracyAmerican Dream
Consumer Freedom
to Buy
We are self-interested actors.
Economic Relations in Free Market Capitalism
4
BASE AND SUPERSTRUCTURE
• Relationship of superstructure and base
• Dialectical
• Mutual interdependence
• Marx wanted to analyze the core elements
of capitalist societies
• Commodities (items bought and sold)
COMMODITIES
• Marx defined commodities as:
• External objects
• Capable of satisfying human
needs
THE VALUE OF COMMODITIES
• Two important criteria
– Use-value: a function of the actual physical properties of a
commodity
• The purpose to which it can be put
• Its value in consumption
– Exchange-value:
• The worth of the commodity relative to other commodities
• In modern societies, exchange-value is expressed in
monetary terms (money)
– Use value equals the qualitative value
– Exchange-value equals the quantitative value
THE VALUE OF COMMODITIES
com·mod·i·ty – noun.
1. A thing that exists “outside of us” that we
exchange for something we want or need.
2. Something with use-value and exchange-value.
=
=
Protect your feet
when walking
$65 or $20
=
= USE VALUE
(Of little use to the capitalist)
EXCHANGE VALUE
(Potential profits for the capitalist)
THE VALUE OF COMMODITIES
• According to Marx, in capitalist
societies
• Almost all production is directed
at exchange-value rather than
use-value
THE VALUE OF COMMODITIES
• Surplus value:
• The difference between the exchange value of
a commodity and the cost of producing it –
including the raw materials, tools, and labor.
• Marx focused on labor
• He claimed that the exchange value of any item
was determined by the socially necessary labor
time required for its production
THE VALUE OF COMMODITIES
• Labor time & length of the work day
• The greater the number of hours
employees are routinely expected to
work for a given wage,
• The cheaper the commodities and
• The greater the potential benefit for
the capitalist
THE COMMODIFICATION OF SOCIAL
LIFE
• Capitalism is dependent on
individuals wanting more and
more products
• Capitalists generate more profit
by expanding markets and selling
more commodities
COMMODIFICATION OF SOCIAL
LIFE:
• More and more of social life:
• Relationships
• Institutions
• Desires
• Feelings
• Becomes commodified: Packaged
and sold in the marketplace for profit
LOVE IN CAPITALISM:
“SHOPPING” FOR LOVE
Commodification of Love
and Relationships
Commodification of
Romance
THE CIRCULATION OF
COMMODITIES
• Marx: Societies are an evolutionary
process
• In nomadic societies, people owned little
property
• Most items they created had use-value to
people who produced them
• As societies evolved, exchange value
became more important than use value
THE CIRCULATION OF COMMODITIES
• Simplest form of exchange was barter
system
• Economies became more complex and
money was introduced
• Process went through stages in which
people continuously moved from the role
of buyer to seller and back again
(Circulation of Commodities).
THE FETISHISM OF COMMODITIES
• Detachment of objects from human
efforts that created them.
• Money is so worshiped that objects
are evaluated in terms of monetary
value
• Money is used to express the value
of all commodities
THE ACCUMULATION OF CAPITAL
• Marx described 2 functions of money.
1. Selling in order to buy
A commodity (C) is transformed into money
(M), then reconverted into a commodity (C)
• In summary C-M-C
• In this form, money is spent
• Resulting in use-value to the purchaser
• The commodity is consumed
THE ACCUMULATION OF CAPITAL
2. Buying in order to sell
• Money can become capital
•
Accumulated goods for the production of
other goods
• M-C-M: Motivating force is exchange
value rather than use-value
•
Result:
•
•
•
Worthless products
Dangerous products
Waste
THE ACCUMULATION OF CAPITAL
• Money, unlike commodities, is distinguishable
only in amount
• The C-M-C transaction has a finite end
• By contrast, the M-C-M continues indefinitely
because the M does not disappear
• Its magnitude increases as profit-making
continuously expands
• “Money begets Money.”
THE ARMY OF THE UNEMPLOYED
• The greater the size of army
• The more capitalists can force
workers to:
• Increase production and
• Accept lower wages
THE ARMY OF THE UNEMPLOYED
• The army of the unemployed also reduces
class solidarity by
• Creating conflict (competition for jobs)
within the proletariat
• Making it less likely that the proletariat
will organize against the capitalists
PURCHASING LABOR-POWER
• Capitalism brought together
• Owners of the means of production
• and
• Workers who could sell their laborpower
PURCHASING LABOR-POWER
• Marx: In order to maintain a fresh supply
of labor-power in the market
• Workers must be able to raise their
children
• Food, clothing, fuel, training and so on
necessary to enable the workers’ children
to replace current generation of workers
CLASS THEORY:
• Under capitalism, there is antagonism
between the buyers and sellers of
labor power
• Between exploiters and the exploited
SOCIAL CHANGE
Classes through history:
• Free men and slaves
• Patrician and plebian
• Baron and serf
• Nobility and bourgeoisie
• Bourgeoisie and proletariat
• Exploiters and exploited
SOCIAL CHANGE
“The history of all hitherto existing
society is the history of class
struggles.” (Marx)
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