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Karl Heinrich Marx

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He was a prolific writer, despite his personal life tragedies. ... Commissar of foreign affairs between 1917-1924. In 1929, deported from the USSR by Stalinists. ... – PowerPoint PPT presentation

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Title: Karl Heinrich Marx


1
Karl Heinrich Marx
  • May 5, 1818
  • March 14, 1883
  • Economic Theory

2
The Works of Marx
  • He was a prolific writer, despite his personal
    life tragedies.
  • Here is a brief list of works by Karl Marx
  • 1844
  • A Contribution to the Critique of Hegel's
    Philosophy of Right. Introduction
  • Outlines of a Critique of Political Economy
  • Critical Notes on "The King of Prussia"
  • Economic and Philosophic Manuscript
  • 1845 Theses on Feuerbach

3
Additional Works by Marx
  • He also wrote many articles with F. Engels
  • Communist League (1847)
  • The Communist Manifesto (1848)
  • England's 17th c. Revolution (1850)
  • The Alleged Splits in the International (1872)
  • Reformists in Germany's Social-Democratic party
    (1879)

4
DAS KAPITAL
  • The most important work by Karl Marx is clearly
    Das Kapital which appeared in three volumes.
    Only volume I appeared while he was alive.
    Volumes II and III were edited by Engels and
    appeared after Karl Marxs death in 1883

5
Georg Hegel 1770-1831
  • Hegelian Philosophy

Thesis
Anti-thesis
Synthesis
6
Ludwig Feuerbach
  • Doctrine of Materialism
  • Man is object of conscious rather than
    unconscious
  • For instance, paintings of GOD in the image of
    Man
  • Alienation process and result of converting the
    product of the individual as a social activity
    into something that is part of themselves -both
    independent and dominant

7
Dialectic Materialism
  • Marx agreed with Adam Smith on the importance of
    the division of labor to economic evolution.
  • He saw conflict will arise as a result from the
    division of labor
  • Recall, Adam Smith had similar concerns in that
    he saw
  • Social disadvantage - workers dehumanized by
    repetitive, monotonous tasks

8
Conflicts due to division of Labor
  • Next, industry from commerce
  • Then, conflict among the different types of labor
  • Eventually individual conflicts with society as
    workers become enslaved to their trade
  • Eventually, humans labor becomes an alien power,
    opposed to them and enslaving them.
  • Resulting into socialism and communism

9
Dialectic MaterialismThe Conflicts
  • For instance, Industry and commerce separate from
    agriculture with resulting
  • conflict between city and rural areas
  • In general, Marx viewed with concern the opposing
    (conflicting) scenarios brough about by dialectic
    materialism
  • Rural vs. Urban
  • Worker vs. Owner
  • Innovation vs. Status Quo

10
Static vs. Dynamic
Religion, Law, Government
Social Superstructure
Static
Relations of Production
Private Property, Wage System
Dynamic
Factors of Production
Land, Labor, Capital, and Technology
11
Economic and Philosophic Manuscripts of
1844(published in 1932)
  • Appears his thoughts were more consistent between
    early writings and Das Kapital than at first
    thought. Among the points
  • Criticized political economist for only
    explaining the workings of the economy rather
    than the causes
  • Contradiction in that more wealth the worker
    produces the poorer they became

12
5 Laws of Capitalist Motion
  • LAW I Law of Accumulation and Failing Rate of
    Profit
  • K é ð L ê ð p ê
  • LAW II due to p ê in Law I then
  • Law of Concentration and Centralization of
    Industry
  • ð Concentration only way to keep p high

13
Laws of Accumulation (cont.)
  • LAW III
  • Because of the existence of Laws I and II there
    will result
  • The Law of a Growing Industrial Reserve Army
  • UNEMPLOYMENT

14
Laws of Accumulation (cont.)
  • As a consequence of increased unemployment then
  • LAW IV The Law of Increasing Misery of the
    Proletariat
  • LAW V The Law of Crisis and Depressions

15
Communist Manifesto
  • Written in 1848 it was
    commissioned to Marx and
    Engels at the second
    Congress of the League of Communists
    in London

16
Communist Manifesto (cont.)
  • ... the first step in the revolution by the
    working class is to raise the proletariat to the
    position of ruling class to win the battle of
    democracy
  • The proletariat will use its political supremacy
    to wrest, by degree, all capital from the
    bourgeoisie, to centralize all instruments of
    production in the hands of the state,

17
Communist Manifesto (cont.)
  • 10 Points which, in general, will be needed for
    the proletariat to take over
  • 1. Abolition of property in land and
    application of all rents of land to public
    purposes.
  • 2. A heavy progressive or graduated income tax.
  • 3. Abolition of all rights of inheritance.

18
Communist Manifesto (cont.)
  • 4. Confiscation of the property of all
    emigrants and rebels.
  • 5. Centralization of credit in the banks of the
    state, by means of a national bank with state
    capital and an exclusive monopoly
  • 6. Centralization of the means of communication
    and transport in the hands of the state.

19
Communist Manifesto (cont.)
  • 7. Extension of factories and instruments of
    production owned by the state the bringing into
    cultivation of waste lands, and the improvement
    of the soil generally in accordance with a common
    plan.
  • 8. Equal obligation of all to work.
    Establishment of industrial armies, especially
    for agriculture.

20
Communist Manifesto (cont.)
  • 9. Combination of agriculture with manufacturing
    industries gradual abolition of all the
    distinction between town and country by a more
    equable distribution of the populace over the
    country.
  • 10. Free education for all children in public
    schools. Abolition of children's factory labor
    in its present form. Combination of education
    with industrial production, etc.

21
The Great Contradiction
  • If the Exchange value of commodities is
    determined by the labor time they contain, how
    can these commodities frequently differ from
    their labor values?
  • In other words Competition is supposed to
    produce equal profits across industries
  • Yet capital/labor ratios differ between industries

22
The Great Contradiction (cont.)
  • Thus, according to Marx since labor is the sole
    source of surplus it must be that labor intensive
    industries should have the largest possible
    profits
  • In order to argue against the critics, he used
    the following formulas

23
The Great Contradiction (cont.)
  • Definitions
  • Constant Capital (c) º charges on fixed capital
  • (i.e. depreciation plus the cost of raw
    materials)
  • Variable Capital (v) º total wages paid to labor
  • Outlay (k) º cost of production
  • (excluding profits) or c v
  • Surplus Value º Total Revenues - (cv)
  • or Total Revenues - k

24
The Great Contradiction (cont.)
  • Rate of surplus value (s) º s/v
  • Rate of profit (p)
    º s/ k
  • Organic composition of capital (O) º ratio of
    capital to labor
  • In contemporary terms
  • GNP c v s k s
  • NNP v s

25
The Great Contradiction (cont.)
  • ASSUMPTIONS
  • Different commodities are produced at different
    organic composition of capital
  • rate of surplus is taken to be 100 (for
    simplicity)
  • Competition will equalize the average profit

26
Transformation of Values to Prices
27
Explanation of Table
  • Column 1 represents five different commodities
  • Column 2 capital/labor ratios with outlay being
    a 100 per industry and 500 for entire economy
  • Column 3 Amount of constant capital (c) used

28
Transformation of Values to Prices
29
Explanation of Table (cont.)
  • Column 4 Cost of product (cv)
  • Column 5 Surplus value (since a 100 is
    assumed that implies that sv
  • Column 6 TRUE value of product according to
    Marx (4)(5)

30
Transformation of Values to Prices
31
Explanation of Table (cont.)
  • Column 7 Average profits
    (recall that p s/ k or 110/500.22)
  • Column 8 Sale price (4) (7)
  • Column 9 Deviation of Price from Value (8)-(6)

32
Transformation of Values to Prices
On average the difference is zero
33
Those who used Marx
  • Vladmir Ilyich Lenin
  • Indicated that the
    movement towards
    communism could be
    shortened in order to be
    applicable in Russia

34
Lenin on How to Achieve Communism
  • ... during the transition from capitalism to
    communism suppression is still necessary, but it
    is now the suppression of the exploiting minority
    by the exploited majority...

35
A special apparatus, a special machine for
suppression, the "state", is still necessary, but
this is now a transitional state. It is no longer
a state in the proper sense of the word for the
suppression of the minority of exploiters by the
majority of the wage slaves of yesterday is
comparatively so easy, simple and natural a task
that it will entail far less bloodshed than the
oppression of the rising of slaves, serfs or
wage-laborers, and it will cost mankind far less.
36
Why Russia needs to be ready for War
  • the victory of socialism in one country does not
    at one stroke eliminate all wars in general. On
    the contrary, it presupposes wars. The
    development of capitalism proceeds extremely
    unevenly in different countries. It cannot be
    otherwise under commodity production. From this
    it follows irrefutably that socialism cannot
    achieve victory simultaneously in all countries.

37
It will achieve victory first in one or several
countries, while the others will for some time
remain bourgeois or pre-bourgeois. This is bound
to create not only friction, but a direct attempt
on the part of the bourgeoisie of other countries
to crush the socialist state's victorious
proletariat. In such cases, a war on our part
would be a legitimate and just war
38
Leon Trotsky
  • Leader of the Russian
    Revolution.
  • Architect of the Red Army. Commissar of
    foreign affairs
    between 1917-1924.
  • In 1929, deported from
    the USSR by Stalinists.
  • In 1940,murdered by
    assassin.

39
MAO TSE-TUNG
  • 1893 - 1976

40
MAO TSE-TUNG
  • The transition to communism is based on
  • the numerous types of state system in the world
    can be reduced to three basic kinds according to
    the class character of their political power
  • (1) republics under bourgeois dictatorship
  • (2) republics under the dictatorship of the
    proletariat and
  • (3) republics under the joint dictatorship of
    several revolutionary classes.

41
MAO TSE-TUNG
  • The first kind comprises the old democratic
    states
  • The second kind exists in the Soviet Union, and
    the conditions for its birth are ripening in
    capitalist countries. In the future, it will be
    the dominant form throughout the world for a
    certain period.

42
MAO TSE-TUNG
  • The third kind is the transitional form of state
    to be adopted in the revolutions of the colonial
    and semi-colonial countries. Each of these
    revolutions will necessarily have specific
    characteristics of its own, but these will be
    minor variations on a general theme

43
On why democracy is not needed to evolve to
Communism
  • The so-called democratic system in modern states
    is usually monopolized by the bourgeoisie and has
    become simply an instrument for oppressing the
    common people. On the other hand, the
    Kuomintang's Principle of Democracy means a
    democratic system shared by all the common people
    and not privately owned by the few.
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