What is Marxist Economics?

What is Marxist Economics?

Marxism is an ideology that born under the hated of capitalism and the free market that exploited workers (proletariat).  The key Thinker is Karl Marx (1818-1883) and the idea was very popular in mobilizing working class.  The new form of social organization will be emerge after capitalism and feudalism has failed. Karl Marx believed that the collapse of the  economic system base on capitalism is inevitable and he addresses the weakness of capitalism in three chapters of his famous book Das Kapital (Capital).

Marx Says on Capitalist economics

However, Marx does not absolutely critical about capitalism. He believed that capitalism as a necessary stage in economic progress to replace the system before it which is feudalism.(Feudalism is the where they are landlord and peasant are tied up to them because they own the land) .

He highlighted that the age of capitalism had driven technological innovation and industrial efficiency. But ultimately he believes that capitalism was only a passing stage, and imperfect system that the flaws will cause an inevitable downfall and replacement.

Class Struggle and exploitation of workers

      In modern industry, the bourgeois had effectively become ruling class and because of ownership gave them an upper hand from the majority of other people. Workers are producing goods to be sold and the capitalist will pay wages to them. The factory owner will calculate the cost of production together with the service by workers and good for profit.

 Marx says this is not right, he believes that the commodity and labour must be calculated first.Then they can calculate the profit. By practicing the latter, the wage of the workers will be at a minimum .Things will get worse with the advance of the technology where the labour will be less useful and can bring to unemployment.