Karl Marx: Heracles or Sisyphus
- a Philosophic and Economic
Interpretation
Expert Mission
October 27th to November 12th
GIZ, Beijing
Prof. Dr. Malte Faber
University of Heidelberg
faber@uni-hd.de
1
Reminder
This lecture is based on a joint paper
“Karl Marx: Heracles or Sisyphus”,
Discussion Paper, Department of Economics,
University of Heidelberg, October 2011.
by the
• philosopher Thomas Petersen Department
of Philosophy, and
• the economist Malte Faber Department of
Economics.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
2
Heracles and Sisyphos
Heracles and Sisyphos were both mythic
figures.
Heracles was the sun of Zeus and he is known
for having fullfilled 12 extroadinary difficult
tasks.
Sisyphos was compelled to roll an immense
boulder up a hill, only to watch it roll back
down, and to repeat this throughout eternity.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
3
Table of Contents
0. Summary
1.
2.
3.
4.
5.
Introduction
Marx and Hegel
Basics of Marx` Economic Theory
Historical Materialism
Analysis of the Capitalistic Method of Production
5.1. Simple Reproduction
5.2. Basics of the Extended Reproduction
5.3. Capitalistic Society and Justice
5.4. The Real Capitalistic Exploitation Process: the
Production
6. Marx as Scientific Economist
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
4
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
5
Table of Contents
6. Marx as Scientific Economist
6.1. Labour Theory of Value and the Transformation Problem
6.2. The Law of the Falling Rate of Profit
6.3. Joint Production and its Repercussions on
the Environment
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental and Resource
Problems
6.5. Marx and the Socialism
6.6. Concluding Remarks
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
6
Table of Contents
7. Labour Theory of Value, Theory of the State and Income
Distribution
7.1. Theory of the State
7.2. Income Distribution
8. Summary
Literature
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
7
Summary
During the last decades a new kind of debate
concerning the work of Marx (1818-1883) has
developed, which is much less ideological.
Marxists and Nonmarxist have found a
common language to discuss Marxian matters.
Nevertehless: there exists one deficit:
philosophers and economists do not talk to
each other.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
8
Summary
A case in point is the role of the philosopher
Friedrich Wilhelm Hegel (1770-1731) in Marx`
thinking.
While
• philosophers emphasize Hegel`s role,
• economists tend to neglect it.
We shall show that Marx`s relationship to Hegel is
• central for his theory in general and
• for his economic theory in particular.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
9
Summary
The main task of this lecture is to give
• an overall appraisal of Marx` work and
• thus to cut through ist numerous
ambiguities.
In detail we represent
• its relationship to Hegel and the historical
materialism
• main statements of Marxian Economics are
in respect to modern economic theory
discussed.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
10
Summary
• Characteristic of the dynamics of the
capitalistic system represented
• Essential insights concerning present
environmental and resource problems are
explained.
• Implications for justice and the income
distribution are highlighted.
• Finally, the notorious deficit of Marx`theory
of politics is commneted.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
11
1. Introduction
To understand the
Work of Marx is for various reasons difficult.
• His stupendous ability to apply philosophical methods
to economics. Thus one does not know wheter the first
chapters of the 1. volume of the Capital is a
philosophical or economic text.
• One never knows whether one is confronted with a
scientific analysis of modern economy or a
philosphical description as is offered by Hegel.
•
His connection of cool scientific analysis and
religiously coloured political agitation.scientific: his
manner to connect scientific analysis with prophecy.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
12
1. Introduction
• His promosing „first, a system of ultimate ends
that embody the meaning of life and absolute
standards by which to judge events and actions;
and secondly, a (scientific, M.F.) guide to those
which implies a plan for salvation“ (Schumpeter
1980: 19).
• His promise of a scientific socialism.
• Marx employed an individualistic, functionalistic
and holistic approaches.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
13
1. Introduction
•
As Elster (986: 103) noted concerning Marx` perception of
history: „Marx had both an empirical theory of history and a
speculative philosophy of history.. Hence the reader does not
know whether the Marxian historical materialism is an
analytical theory of history or rather a version of „world
history as salvific history“ (Löwith 1979)
•
It is something completely new: the transformation of
philosophy and economics.
•
“The philosophers have only interpreted the world, in various
ways; the point is to change it” (Marx, MEW3, 7, Theses on
Feuerbach)
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
14
1. Introduction
• According to Marx: this change of the world has to
occur in economic terms, because the fundamental
structure of the social world is economic.
• This implies one has first to pursue economic research.
• For this reason Marx considered himself not to be a
philosopher but a political economist.
• Hence, his main work, his magnum opus, Capital, was a
contribution to Political Economy.
• Thus, economics became an executor of the last will of
philosophy.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
15
1. Introduction
What aims did Marx pursue?
1. He wanted to develop a uniformly social science, into
which philosphy was transformed.
2. He wanted to revolutionize society.
Both aims have something Herculian:
• A new theory of economics, which contains essential
elements of practical philosophy,
• a sociological theory of
o classes,
o knowledge and
o consciousness
• as well as a concept of ideology.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
16
1. Introduction
But his efforts often seem rather in vain; this can perhaps be
best recognized in his economic work, where he once and again
attempts to d evelop a theory of prices on the basis of labour
values.
This makes Marx less Hercules but rather Sisyphos.
In addtion, much of his work is rather sketchy. Even well minde
interpreters of his work like
• Jon Elster and
• John Roemer (19988: 2)
• Joseph A. Schumpeter
their dismay concerning his lack of argumentatiove consistency.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
17
1. Introduction
„Marx`s
intellectual energy was not matched by a
comparable level of intellectual discipline. His
intellectual profile is a complex blend of relentless
search for truth, wishful thinking, and polemic intent“
(Elster 1986: 2).
„As always when reading Marx, one is struck by
admiration for the brilliance of his intellect and
dumbfounded by his lack for consistency.“ (ibid. 138)
„His utopian attitude and lack of intellectual control
prevented him from carrying out the theoretical and
practical tasks he had set for himself, but without theses
qualities he would not even have tried. He suffered the
cost; we are the beneficiaries.” (ibid. 200)
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
18
1. Introduction
„in order to forge such weapons for the arena of social strife
Marx had to occasionally to bend or to deviate from, the
opinions that would logically follow from his
system.“(Schumpeter 1980: 21)
Marx also often wakened expectations which he did not fulfil.
Desai`s quote on the Marxian paper „A Contribution to the
Critique of Hegel`s Philosophy of Right“ applies also to many
other other attempts:
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
19
1. Introduction
Marx also often called up expectations which he did
not fulfil. Desai`s quote on the Marxian paper „A
Contribution to the Critique of Hegel`s Philosophy of
Right“ applies also to many other other attempts:
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
20
1. Introduction
„On his marriage to Jenny von Westphalia, he managed
to write his first major work, but like many of his other
works, it was unpublished in his lifetime: a critique of
Hegel’s Philosophy of Right, the Master’s last complete
publication. It is a fragment, but Marx had promised his
friends an earth-shattering critique of Hegel that would
settle scores once and for all. And as often in his later
life, he promised more than he could deliver.”
• Thus Marx` picture alternates in history.
• But we should not forget Elster`s remark: Marx
“suffered the cost; we are the beneficiaries.”
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
21
2. Marx and Hegel
There exists one serious deficit in the modern
presentation of the Marxian work.
The reason is:
Philosophers and economists do not talk to
each other.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
22
2. Marx an Hegel
A case in point is the role of the philosopher
Friedrich Wilhelm Hegel (1770-1731) in Marx`
thinking.
While
• philosophers emphasize Hegel`s role,
• economists tend to neglect it.
We shall show that Marx`s relationship to Hegel is
• central for his theory in general and
• for his economic theory in particular.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
23
2. Marx and Hegel
We explain
• the influence of Hegel on Marx,
• Marx's position concerning the young
Hegelians (Junghegelianer) and
• how he differs from Marx.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
24
3. Basics of Marx` Economic Theory
Basics of Marx`s economic theory are
sketched in this section.
• He delivers a critique of political economy,
• but at the same time he wants to give an
explicative theory of the modern economy,
• which together stands in the service of
revolutionizing the world.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
25
3. Basics of Marx` Economic Theory
Difficulty:
One never knows when dealing with the
economist Marx whether he is
• a scientist
• a political agitator or finally only a
• a philosopher, who has erred into fields
which are align to him.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
26
3. Basics of Marx` Economic Theory
Marx contributed little concretely to a theory of
socialism.
He did not understand himself as a theoretician of
socialism, but rather as
• a critic and
• analyst
of the capitalistic system.
His attempt to surpass the bourgeois economic
theory by a superior one failed. The main reason for
this failure was his inadequate instrument, the theory
of value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
27
3. Basics of Marx` Economic Theory
Labor theory of value: the value of a good, which is
exchanged as a commodity, is determined by its
labor value.
Marx learned this approach from one of the great
classical economists, David Riccardo (1772-1823).
In contrast to Ricardo, Marx applied this theory also
to labor itself, insofar as the capability to create
value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
28
3. Basics of Marx` Economic Theory
Marx:
• The value of labor is equal to the labor value
which is necessary for the reproduction of labor
(i.e. all the goods which a labor needs to
reproduce himself and his family, in particular his
off springs).
• The value of goods is higher than the labor value
necessary to produce it.
• The difference is called surplus value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
29
3. Basics of Marx` Economic Theory
• Buying the manpower of a laborer and
• using it for his purpose the entrepreneur acquires
the surplus value in form of profits
The problem of this value analysis is, that profit can
only be realized
• in an exchange economy
• in which prices are paid.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
30
3. Basics of Marx` Economic Theory
• The value is an inner quality of the commodity
• The price is an externally recognizable information.
Marx has to assert that the value determines the price.
As will be shown in section 6.1 below.
This statement is true only
• under very restrictive conditions
• which in reality never hold.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
31
3. Basics of Marx` Economic Theory
Marx has attempted in the third volume of Capital
which was published by Friedrich Engels only after his
death to solve, or perhaps correctly said, to conceal it.
This endeavor has lead
• to many ambiguities and
• great confusion and
• extremely complicated the understanding of his
work.
As shown in section 5 and 6 below, this contradiction
cannot be solved.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
32
3. Basics of Marx` Economic Theory
Conclusion:
Marx theoretical approach is not suited to give a
quantitative analysis of the economy and a
scientifically satisfying description of the economy.
While the disparity between value analysis and price
theory and Marx attempts to cover the tension between
the two of them, the lecture of his texts vary
cumbersome matters get even more complicated by an
actually ambiguity of Marx` concept of value or as
Petry (1916: 28) said by the Janus face of the Marxian
theory of value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
33
3. Basics of Marx` Economic Theory
Prof. Malte Faber University of Heidelberg
faber@uni-hd.de
34
4. Historical Materialism
• Marx`s And Engels` ,materialistic
conception of history or “historical
materialism” is outlined.
• Central concepts are
- forces of production
- relations of production
- mode of production.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
35
4. Historical Materialism
• Marx`s And Engels` ,materialistic
conception of history or “historical
materialism” is outlined.
• Central concepts are
- forces of production
- relations of production
- mode of production.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
36
4. Historical Materialism
- forces of production
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
37
4. Historical Materialism
relations of production
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
38
4. Historical Materialism
• Mode of production
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
39
5. Analysis of the Capitalistic Method of
Production
5.1. Simple Reproduction
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
40
5.2. Basics of the Extended Reproduction
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
41
5.3. Capitalistic Society and Justice
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
42
5.4. The Real Capitalistic Exploitation
Process: the Production
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
43
6. Marx as Scientific Economist
The main merit of Marx is presumably what
Schumpeter called (1980:26) the “economic
conception of history”:
The economy is not an isolated subarea of human
living as Aristotle conceived his Oikos in which the
economy has its limited space.
In stead the economy penetrates the whole life and
stands in near connection with the mental and
intellectual life, philosophy, science and all other
parts of culture.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
44
6. Marx as Scientific Economist
The economy forms our perception of the world
much stronger than philosophy assumed it until that
time.
However, this implies, that the “economic
conception of history” of Marx is rather
• sociological than a
• scientifically economic perspective.
Marx is strongest whenever he is
• on the ground of philosophy and
• where he argues qualitatively in the economy.
.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
45
6. Marx as Scientific Economist
Similar as the mythological figure Antaios, Marx is
invincible as long as he is standing on the ground of
philosophy.
But as Antaios,
• he is losing his power
• as soon as he leaves the ground of philosophy
and
• does not anymore argue qualitatively
• but economically quantitatively.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
46
6. Marx as Scientific Economist
His quantifications are notoriously weak and the
deficits
• in the explaining of prices via the labor theory of
values as well as
• in the “law of the fall of the rate of profit”
are incurable.
It is not possible to extend
• the Marxian economics to a theory which is
comparable
• to the theory of a general equilibrium of
neoclassical economics.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
47
6. Marx as Scientific Economist
Elster (1986) summarizes Marx` achievement in the
following way:
It is
• strongest in history and sociology and
• weakest in economics and politics.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
48
6.1 Labour Theory of Value and the
Transformation Problem
Marx orientates himself in on classical economics of
Smith and Ricardo.
While Smith sees mainly the social and
communicative dimensions, Marx is immediately
fascinated of the object which is exchanged, the
commodity.
While Smith sees immediately the coordination
which the exchange effects, namely that goods are
allocated and reach to where they are needed, Marx
is not interested in the coordinative function of the
market.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
49
6.1 Labour Theory of Value and the
Transformation Problem
As stated above in Section 3 Marx
• Marx delivers a critique of political
economy,
• but at the same time he wants to give an
explicative theory of the modern economy,
• which together stands in the service of
revolutionizing the world.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
50
6.1 Labour Theory of Value and the
Transformation Problem
• We want to ask whether Marx developed in his
monograph Capital an economic theory of the
modern economy which is superior or at least
equal to modern Nonmarxian economics?
• Marx argues that modern economy is an exchange
economy. The value of each commodity is equal
to the human labor which is embodied in it. This is
the nucleus of the labor theory of value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
51
6.1 Labour Theory of Value and the
Transformation Problem
• Marx learned this approach from one of the great
classical economists, David Riccardo (17721823).
• In contrast to Ricardo, Marx applied this theory
also to labor itself, insofar as the capability to
create value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
52
6.1 Labour Theory of Value and the
Transformation Problem
• The value of labor is equal to the labor value which
is necessary for the reproduction of labor (i.e. all the
goods which a labor needs to reproduce himself and
his family, in particular his off springs).
• But a worker produces more than its value is worth:
• A worker laboring 10 hours and producing a
corresponding worth, can reproduce himself with
goods for which only 6 hours labor are needed.
• The difference between 10 – 6 = 4 is called surplus
value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
53
6.1 Labour Theory of Value and the
Transformation Problem
• Buying the manpower of a laborer and
• using it for his purpose the entrepreneur acquires
the surplus value in form of profits.
Result: This argumentation explains the origin of
profits.
The problem of this value analysis is that profit can
only be realized
• in an exchange economy
• in which prices are paid.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
54
6.1 Labour Theory of Value and the
Transformation Problem
• The value is an inner quality of the commodity
• The price is an externally recognizable information.
Marx has to assert that the value determines the price.
The transformation of values of commodities into
market prices of the commodities is known as the
transformation problem.
The transformation problem can only be solved
• under very restrictive conditions
• which in reality never hold.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
55
6.1 Labour Theory of Value and the
Transformation Problem
These conditions are:
- Labor is the only scarce factor of production.
- There is no joint production,
- There is no technical progress.
- The market structure is characterized by perfect
competition.
In addition, the folllowing conditions have to hold:
• The growth of the population is constant (Weizsäcker und
Samuelson 1971/1974).
• The time preference and the distribution of income have
has to fulfil restrictive conditions.
• Nonrenewable and recnewable natural resources have to
be not scarce.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
56
6.1 Labour Theory of Value and the
Transformation Problem
Marx has attempted to solve the transformation
problem in his third volume of Capital which was
published by Friedrich Engels only after his death, or
perhaps correctly said, to conceal it.
This endeavor has lead
• to many ambiguities and
• great confusion and
• extremely complicated the understanding of his
work.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
57
6.1 Labour Theory of Value and the
Transformation Problem
Desai (2002: 264) explains the problems of the
labour theory of value in case of the circumstance
that the production needs tiem:
„A classic example is winemaking. When grapes are
harvested and crushed, labour is used. But then the
grape juice is left to ferment for some time before we
have wine. The value of the wine exceeds that of the
grape juice by a large factor, yet labour contributes
nothing to the extra value. Thus, value and surplus
could arise from factors other than labour.“
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
58
6.1 Labour Theory of Value and the
Transformation Problem
Conclusion:
Marx theoretical approach is not suited to give a
quantitative analysis of the economy and a scientifically
satisfying empirical description of the economy.
While the disparity between value analysis and price
theory and Marx attempts to cover the tension between
the two of them, the lecture of his texts vary:
cumbersome matters get even more complicated by an
actually ambiguity of Marx` concept of value or as Petry
(1916: 28) said by the Janus face of the Marxian theory
of value.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
59
6.1 Labour Theory of Value and the
Transformation Problem
The main deficit of the labour theory of value is that the scarcity
problem and thus the demand side is not taken care of.
Roemer (1988: 49): „The labor theory of value is a supply-side
theory […] The correct theory of market price must take both
supply and demand into account.“
During the last decades, most Marxian economists have agreed
to the conclusion, that the labour theory of value can neither be a
theoretical nor a empirical the basis of the explanation of market
prices (Brody 1970, Morishima 1973,Cohen 1978, Roemer
1981, Elster 1985).
In particular it can be shown that it is possible to study problems
as for example the exploitation and the conflict of classes
successfully without employing the labour theory of value.
Prof. Malte Faber University of Heidelberg
faber@uni-hd.de
60
6.1 Labour Theory of Value and the
Transformation Problem
• Can we definitely say that labour theory of value is
disproved?
• Strict proofs do not exist concerning questions like
this one.
• We also cannot exclude the possibility that the
labour theory of value might once be employed for
relevantly quantitative analysis, even if we consider
this to be highly improbable.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
61
6.2. The Law of the Falling Rate of Profit
• One of the central integral parts of Marxian
Economics is the law of the falling rate of profit.
• Marx considered it to be the most essential law of
motion of the capitalistic system.
It says:
• The profit per unit of employed capital is falling in the
long run.
• Marx only systemized an insight of classical
economists like Ricardo (1772-1823) and Malthus
(1768-1834).
• While the latter assumed that land became more
scarce, Marx saw the increasing amount of capital as
the main cause.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
62
6.2. The Law of the Falling Rate of Profit
Marx differentiate between variable capital v (labour)
ND constant capital k (machines, tools, houses, shades,
ships etc.).
Marx assumes that the constant capital always grows
faster than the variable capital. From this follows , i.e.
that the organic composition of capital which is the
relation between constant capital c and total capital v +c
always grows (Sweezy 1942: chapter 6).
Marx concludes that the rate of profit has to fall, because
he considers the variable capital as the only source of
profit.
Technical progress can increase the rate of surplus, but
not the tendency of fall compensate.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
63
6.2. The Law of the Falling Rate of Profit
The Law of the Falling Rate of Profit was
controversially debated for a long time, but during
the second half of the 20th century there developed a
consensus between Marxist and Neoclassical
economists that this law is not valid.
(Sweezy 194: Chapter 6, Okishio 1961, Samuelson
1972, Morishima 1973, Roemer 1981: Chapters 4
und 5, Elster, 1986: 192-193)
A proof for this consensus is given on the next slide.
For a critical assessment of those authors who are of
different opinion see Roemer 1981: 117-8, 123-4.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
64
6.2. The Law of the Falling Rate of Profit
Let e be the rate of exploitation or rate of surplus value,
which is defined by the relation of surplus value to variable
capital and
let v be the variable and k the constant capital.
Then the rate of profit p is defined by p = e v/(v+k).
Let the variable capital be the numeraire, i.e. the value of one
unit of labour is equal to 1,
then we can express the value of the constant capital in units
of the variable capital, Hence, the rate of proftio p simplifies
to p = e/(1+k).
We see imediately that there does not exist a nonambigious
tendency for p, bedause the rate of exploitation e does not
need to increase as much as the constant capital, in oder to
keep the rate of profit p constant (see Roemer 1981: 117-8
and 123-4).
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
65
6.2. The Law of the Falling Rate of Profit
• Marx had assumed that the steady fall of the
rate of profit would lead to complete
collapse of the capitalistic system.
• This expectations has yet not confirmed.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
66
6.3. Joint Production and its Repercussions on
the Environment
Marx was the only classical economist who dealt
extensively with the environmental and resource
problem (Kurz 1986, Baumgärtner 1999: 104107). He even conceived them as problems of
joint production. What does this mean?
To give an example:
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
67
6.3. Joint Production and its Repercussions on
the Environment
Example of Joint Production
A two-person household needs yearly:
4000
kwh electrical energy to produce this
amount with lignite (brown coal).
6000
l water steam,
21600 m3 air emissions,
3200
l waste water,
288
kg ashes are generated as by-products
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
68
6.3. Joint Production and its Repercussions on
the Environment
He even discussed recycling of waste and to regain resources
from recycling processes. (Baumgärtner, Faber, Schiller
2006, 114-116)
However, he thought that all environmental and resource
problems would finally be solved because of human creativity
to transform all waste products into valuable goods.
It is noteworthy that Marx‘ perspective was singular and
unique at his time. His awareness of this issue demonstrates
Marx‘ extraordinary ability to analyze the dynamics of the
capitalistic system. But Marx didn‘t integrate his view into
his economic theory and downplayed it.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
69
6.3. Joint Production and its Repercussions on
the Environment
As proved by Baumgärtner, Faber, Schiller (2006, Chapter 3)
Marx‘ view is not valid:
From a thermodynamic point of view, every production yields
joint products.
Every industrial production is characterized by joint products in
form of waste and emissions.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
70
Typical Industrial Production Process
Example: Iron Manufacturing
product:
low entropy
iron
low entropy fuel:
coke
Production process:
Entropy production
joint products:
high entropy
slag, dust, CO2
high entropy raw
material:
iron ore
Thermodynamics  every industrial production is joint production
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
71
6.3. Joint Production and its Repercussions on
the Environment
One may as well ask why Marx believed so much in progress.
This may as well be a consequence of the great admiration he
had for the capitalistic bourgeoisie, which is documented in
his Communist Manifesto (jointly published with Friedrich
Engels in 1848: 62):
“It (the bourgeoisie, M.F.) has been the first to show what
man's activity can bring about. It has accomplished wonders
far surpassing Egyptian pyramids, Roman aqueducts, and
Gothic cathedrals; it has conducted expeditions that put in the
shade all former exoduses of nations and crusades.”
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
72
6.3. Joint Production and its Repercussions on
the Environment
“The bourgeoisie, during its rule of scarce one
hundred years, has created more massive and more
colossal productive forces than have all preceding
generations together.”
(Marx and Engels 1848: 63)
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
73
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Why did Marx understand so well the dynamics of the capitalistic
system?
Marx had the ability to see unintended consequences of our
actions.
Two areas in which these unintended organize themselves and
become to a determining factor. These areas are
1. the economy and
2. nature
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
74
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Marx`s View on the Economy
Marx recognized that the production of wealth always goes hand in
hand with the creation of poorness and that this happens although
the actors do not intend this production of pauperism.
The poorness does not arise by the fact that people rob so others, but
poorness is an unavoidable consequence of the capitalistic system
and its dynamics.
This was already observed by the philosopher F.W. Hegel
(1821/1970) in his Philosophy of Right. But Marx analyzed this
connectivity more in detail than Hegel, for he developed this idea to
a „precision tool for the study of social change” (Elster 1986: 3839).
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
75
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Marx`s View on the Environment
But on the other side this Marxian analytical instrument may
also be fruitfully employed to study the unintended
consequences of the repercussions of the capitalistic market
system on nature.
Marx dealt extensively with environmental and resource
problems.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
76
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
„Capitalism had survived – not only survived, but
become a dynamic worldwide phenomenon yet again,
the first time since 1914. It showed a capacity for
technological advance with promises of more to come.
Across the world people abandoned socialism as a
cure for their problems. Warts and all, it was
capitalism they wanted. Capitalism had still a lot of
potential; it was not yet ready to lie down and die.”
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
77
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Desai was inspired to his diagnosis by a central thesis of Marx
(1959/04:21):
“No social order ever disappears before all the productive
forces for which there is room in it have been developed; and
the new higher relations of production never appear before the
material conditions of their existence have matured in the
womb of the old society itself. Therefore, mankind always sets
itself only such tasks as it can solve; since looking at the
matter more closely, we will always find that the task itself
arises only when the material conditions necessary for the
solution already exist, or are at least in the process of
formation
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
78
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Desai is correct in taking the development of the world after
1989 as an indication that Marx` assertion concerning the
dynamics of the method of production is appropriate If this is
true, then the capitalism would have a splendid future still to
come:
• it has not yet reached its limits in the developed countries and
• more and more countries and economies are globally captured
by capitalism.
However in the past, this dynamic has been linked with
• an ever growing demand of environmental services and
• resource capacities.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
79
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Empirical evidence for this hypothesis is the
• increase of consumption of energy and
• the corresponding increase of CO2.
Since the environmental conference in Rio in 1992 both
quantities grew
• by 40 percent and
• this tendency is still unbowed until the recent present.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
80
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Consequence:
perspective for the future safeguard of the natural
environmental conditions looks somber; the reasons are:
1. at least 3 billions human beings of the world population
have a backlog demand to satisfy basic need, such as
food, clothing, housing, clean water, health services and
education. Even in China many of its inhabitants are in
need of these goods and services;
2. in addition, we have to recognize that the world
population will grow by another 3 billions people until
2050.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
81
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
Consequences:
words it does not seem possible
• to conserve globally the intake capacity of the
environment for pollutants and
• to make available sufficient amounts of resources for
the production and consumption of 9 billions people
The resulting damages of nature and the shortages of
natural resources would be disastrous not only to nature,
but would also be a permanent source of conflicts.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
82
6.4. The Dynamics of the Capitalistic System
and the Thereby Effected Environmental
and Resource Problems
Policy recommendation:
Decoupling of economic growth and
• the use of exhaustible and nonrenewable
resources as well as
• the depletion of the environmental capacity of
disposing and cleaning up waste.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
83
6.4. The Dynamics of the Capitalistic System
and the thereby effected Environmental
and Resource Problems
If
• the decoupling of economic growth and
• the environmental strain
cannot be achieved then it may well be that Karl
Marx is right with his prediction that
• the capitalistic system will collapse,
• although in quite a different manner was as he had
thought (see also Desai 2002: 9f).
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
84
6.5 Marx and Socialism
It is not quite clear, what Marx`s contribution
to socialism and communism has been.
Friedrich Engels maintained that Marx
brought socialism from utopia to science.
Thus he insinuated that Marx had develop a
theory of socialism. Such a theory had to
deliver insights into the economic structure of
socialism.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
85
6.5 Marx and Socialism
Engels suggestion led
• many to attempt to develop such an economic theory
of socialism.
• Further, the Soviet Union and other socialist countries
had attempted to develop a socialism according to the
principles of Marx until 1989.
• After 1989 many thought that the failure of the
socialistic experiment disproved a theory of socialism,
too.
• Not few even thought that not only Marx analysis was
in totally confuted, but also that he was responsible for
the failure of the socialistic experiment.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
86
6.5 Marx and Socialism
• However, it is emphasized in the scientific debate
on socialism that the failure of the soviet
socialistic experiment does not imply that another
experiment might not be successful (see e.g.
Roemer 1994).
• It is expedient to recognize that there does not
exist a theoretical framework which is comparable
with the neoclassical framework, warts and all of
it given.
• Desai (2002.3-4) noted that Marx did not attempt
to supply such a theory, for he considered himself
not as a theorist of socialism, but as a critique of
capitalism.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
87
6.6 Concluding Remarks
•
Sometimes Marx is called the last classical economist. But this connotation does not seem justified.
•
Das wird Marx jedoch nicht ganz gerecht, da er eine neue Richtung ökonomischer Forschung geschaffen hat: die
marxistische Ökonomie. Diese hat sich sowohl in Auseinandersetzung mit der herrschenden Wirtschaftswissenschaft
als auch eigenständig entwickelt. Darüber hinaus gilt Marx als Begründer des Zwei-Faktoren-Zwei-Sektoren
Wachstumsmodelles und damit der Wachstumstheorie (Krelle 1979: 460-1) sowie mit seinen Ausführungen im 2.
Band des Kapitals (MEW 24: 391-518) als Vorläufer der von Wassily Leontief (1905-1999) entwickelten InputOutput-Analyse (Leontief 1951). Beide sind im Laufe des 20. Jahrhunderts zu wichtigen Bereichen der
herkömmlichen Wirtschaftswissenschaften geworden. Auch haben seine Ideen einen der wichtigsten Ökonomen des
20. Jahrhunderts, Joseph Schumpeter, in dessen Theorie der wirtschaftlichen Entwicklung beeinflusst, die wiederum
zur Entstehung eines neuen Zweiges der Wirtschaftswissenschaften im letzten Viertel des 20. Jahrhunderts, der
Evolutorischen Ökonomie, geführt hat. Marx’ Beitrag zur Umwelt- und Rohstoffökonomik haben wir bereits oben
gewürdigt. Marx hat viele neue Fragen gestellt. Dieses Verdienst wird auch nicht dadurch geschmälert, dass er oft
keine zufriedenstellenden, sondern nur unzureichende oder sogar falsche Antworten auf diese Fragen gegeben hat.
Man kann daher durchaus sagen, wenige Ökonomen haben so nachhaltig die Wirtschaftswissenschaften beeinflusst,
wie das Karl Marx getan hat.
Vgl. Desai (2002: 56f) und Samuelson (1971: 242). Einschränkend meint Elster (1986: 10): „…the schemes of simple
and extended reproduction, which anticipate modern input-output analysis, although the gist of Marx’ analysis can be
stated in one page whereas he uses more than hundred.”
Siehe Haustein (1998) und Weise (1998), die aus zwei unterschiedlichen Perspektiven den Einfluss von Marx auf die
Evolutorische Ökonomie zeigen.
•
•
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
88
7. Labour Theory of Value, Theory of the State
and Income
Distribution
7.1. Theory of the State
Marx considered himself as a political economist, but did he dispose
over a theory of the state? Desai (2002: 8) has no doubt concerning the
lack of such a theory. “(But) now his lack of a theory of the state, of
classes, of agency in political were all pointed out.”
Marx, certainly has never developed systematically a theory of the
state; there exist, however, hints in his work (Elster 1986: 2, 143).
Thus Elster speaks of „an abdication theory“ which states that
„capitalists abstain from political power because they find their
interests better served this way.“ Elster argues that if certain
alterations are taken care of then the Marxian conception of the state is
that that the state is an „independent actor in the social arena“, of
which Marx assumes „that the interests of the capitalist class serve as
constraints rather than goals for its actions.“
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
89
7.2. Income Distribution
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
90
8. Summary
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
91
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
92
Literature
Die Schriften von Karl Marx und Friedrich Engels werden in der Regel nach der
Ausgabe der Marx Engels Werke, Berlin (MEW), zitiert.
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Aristoteles (1995) Die Nikomachische Ethik. Nach der Übersetzung von Eugen
Rolfes bearbeitet von Günther Bien, Hamburg.
Baumgärtner, Stefan (2000) Ambivalent Joint Production and the Natural
Environment. Physica-Verlag, Heidelberg, New York.
Baumgärtner, Stefan, Malte Faber und Johannes Schiller (2006) Joint Production
and Responsibilty in Ecological Economics. On the Foundation of Environmental
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Berlin, Isaiah (1963/1971) Karl Marx, Piper & Co., München, 1963, zitiert aus H.
Claus Recktenwald (Hrsg.), Karl Marx, Geschichte der Politischen Ökonomie,
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Bernholz, Peter und Malte Faber (1971) Diskussion einiger Probleme der
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Bernholz, Peter und Malte Faber (1972) „Diskussion einiger Probleme der
Arbeitswertlehre bei erweiterter Reproduktion“ Zeitschrift für Wirtschafts- und
Sozialwissenschaften 92: 389-305.
Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
93
Literature
Böhm-Bawerk, von Eugen. (1896) “Zum Abschluß des Marxschen Systems”, in
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Brody, Andrew (1970) Proportion, Prices and Planning, New York, American
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Cohen, Gerald A. (1978) Karl Marx`s Theory of History, Princeton University
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University of Heidelberg
faber@uni-hd.de
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University of Heidelberg
faber@uni-hd.de
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Löwith, Karl (1990) “Marxismus und Geschichte”, in K. Löwith, Der Mensch
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faber@uni-hd.de
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University of Heidelberg
faber@uni-hd.de
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Literature
Nutzinger, Hans G. und Elmar Wolfstetter (Hrsg.) (1974b) Die Marxsche Theorie
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University of Heidelberg
faber@uni-hd.de
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University of Heidelberg
faber@uni-hd.de
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Weise, Peter (1998) „Evolution und Selbstorganisation bei Karl Marx“, in Camilla
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Arbeitswertlehre als Planungsinstrument unter Verwendung der bürgerlichen
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aus dem Englischen „A new Labor Theory of Value for Rational Planning through
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Prof. Malte Faber
University of Heidelberg
faber@uni-hd.de
100