1. IB GLOBAL POLITICS Karl Marx and Marxism

2. Biography Born MAY 5,1818 in Trier, Germany Studied philosophy and economics in Berlin Earned his living as a journalist Died MARCH 14,1883 in London having only written 3 of the planned 8 volumes of Das Kapital.

3. Das Kapital The Capital, in the English translation is an extensive treatise on political economy and the theory of exploitation.

4. The Communist Manifesto –Political template for the theory of class. The Manifesto suggested a course of action for a proletarian revolution to overthrow capitalism and, eventually, to bring about a classless society

5. Marx’s Theory of Class and Exploitation Major themes 1.Theory of Exploitation 2.Classes in history 3.How many classes

6. Labor Theory of Value Marx radicalizes Adam Smith ‘s theory. All value is created by Labor (example - fetch water). What is value: C+V+S [constant capital + variable capital + surplus] What is constant capital? (Investments, accumulated labor) Variable capital = wages Surplus product For Marx the essence of exploitation is that the capitalists will use the labor and pocket the surplus. Rate of profit is S divided by C+ V

7. From petty commodity production to capitalist mode of production Petty Commodity Production – C-M-C C = Commodity M=Market C=Commodity This is commercial society, not capitalism. (Early 19 th Century America) Purpose is satisfaction of needs. Money is a mediator for exchange of needs. Capitalist Production M-C-M’ Cycle starts with MONEY. Produce COMMODITIES. To make more MONEY. (Altruistic money bags) Competitive market place will create more money by investing in new technology to make more money. Not a satisfaction of needs but to generate profit, capitalists strive for it by competitions with fellow capitalists.

8. Labor power as a commodity What does the wage laborer sell: it is the amount of labor during the production process. Labor power, the capacity to work. The way equal values are exchanged on the labor market – the capitalist does not cheat, pays the price for labor. What is the price: costs of reproduction (how much to reproduce that labor power. (Compensated equally for labor capacity) Labor power is a unique commodity, which has the capacity to produce higher value than its own value when consumed. (work longer for surplus) Exploitation for Marx is not evil, inevitable in capitalism. (This is why he hates capitalism for how the system works)

9. Materialism & Dialectic Materialism - Belief that nothing exists apart from matter (material). Dialectic – conflict is the basic law of nature. Marx ( History & economics) and Engels (science & philosophy) set out to interpret the world in terms of Dialectical Materialism – all development in the world arises out of conflict.

10. Marx Marx theorized the Industrialized nations of Europe would undergo bloody revolutions as a result of the dialectical principle of conflict. The working class oppressed by the capitalists would rise up and seize power. After which a communist system would be established. The concepts of religion, morality, and the family would have no place in a communist society.

11. Marxism – Dialectical Materialism, Critique of Capitalism, advocacy of a proletarian revolution. Communism is a political philosophy which argues for a classless and stateless society structured upon a communal ownership of property. Socialism- Political theory advocating public or common ownership and cooperative management of the means of production and an allocation of the resources.

12. Conflict theory All societies are divided into two groups –Owners –Workers Western society is capitalist. –Owners are bourgeoisie (as a new class, transformed occupation – (Doctors, Lawyers, Priests – positions of honor to income position) –Workers are proletarians (as a class)

13. A History of Class Struggle

14. Marx’s first mistake - This is wrong because it does not fit the his theory of exploitation. If exploitation is unique for a capitalist mode of production. Contradiction. Empirically incorrect. Did the slaves overthrow the slave owners. – South? Capitalist of the North initiated a war against the South. Slaves did not become the dominate class. Did the proletarians overthrow the bourgeoisie? China 1949. Peasant masses under Mao, Russia 1917.

16. Marx and The Revolution Marx predicted that wealth would belong to fewer and fewer people. The workers would eventually realize their position and overthrow the bourgeoisie There would be an armed revolution which would begin in Britain. It would happen in the very near future.

17. What happened? The biggest problem with Marxism is that the predicted revolution never occurred in the form he said it would. People are not poorer. Wealth is not concentrated in the hands of a few rich people. Britain hasn’t had a Communist revolution yet and is not likely to in the near future. As a political approach Marxism has failed as a historical alternative to liberal capitalism. End of the U.S.S.R. signified the end of Marxism.

18. What’s wrong with Marx? 1. Reforms came through the government so the gap between the rich and poor did not reach the extremes predicted by Marx. 1a. The workers never ruled. They never overcame the proletariat. The workers were never the vanguard of the Communist Party. 2. Working conditions improved rather than getting worse. 3. The middle class grew rather than shrank. Workingmen were able to enjoy the fruits of their labor as wages rose and prices declined. Increase in self – employment, and the white collar worker. Am I exploited? 4. Revolutions occurred in non-industrial countries and became a means to industrialize rather than occurring in the industrial states as a response to the conditions created by industry. 5. There are other sources of conflict (ideals, values, religion) than just class conflict over property. 5a. The absence of private property would abolish corruption, the opposite happened – barter, favors, embezzlement. 6. Without profits or economic incentives (encouragement) there is little reason for workers to work hard. All communist countries today use some kind of economic incentives (higher pay, healthcare, etc.) to get their people to work hard. 7. No country has a classless society, Bogus legitimacy. Even if everyone received the same amount of money, members of the Communist Party (Nomenklatura) have more benefits than others, athletes and scientists have more prestige, etc. Re-Read 1989 pp14-21.

19. O,V,P,L “The worker of the world has nothing to lose, but their chains, workers of the world unite.” Karl Mark 1848, Chapter 4 Communist Manifesto.

20. Conclusion Marxism is a political philosophy – your views are your own. Marxism is an understanding of the nature of social relationships which you are expected to evaluate. Recognize that it has strengths and weaknesses as a tool of understanding.

21. The end For further information – read books and visit websites. There are thousands available for you.