Marxist Critique Of Capitalism Analysis

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Merriam-Webster defines capitalism as “an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market”. Karl Marx was a socialist, born in Prussia in 1818. He is considered by many to be the father of modern day communism. Marx and his followers were very critical of capitalism for three main reasons. This essay will distinguish and evaluate the three Marxist critiques of capitalism.
The first critique of capitalism, according to DeGeorge is” Capitalism is inherently immoral because it cannot exist without robbing the worker of his due.” (p. 149). In business most companies develop a product and sell the product to make a profit. To develop a product they must have a labor force to design, develop, and create it. One way for companies to make a profit is to control the cost of labor. Karl Marx considered this to be labor exploitation and this is the basis of the first critique. As we have seen in big business, large companies have sent their manufacturing operations overseas to find cheap labor. According to DeGeorge, “If the cost of labor gets too high, move your production to a place where the cost of labor is less. The less you pay the workers, the greater the profit when you sell the product.” (p.150). Critics believe that this type of business practice is a form of slave labor because the worker is being “unfairly compensated”. For example, when American companies outsource their labor to under-developed countries they usually pay less than they would an American worker. What needs to be taken into consideration are the costs of living in that country and whether or not that wage is comparable to other wages within that country. The first critique does bring up conceivable arguments that capitalism creates “labor exploitation” but the examples proving this theory are questionable. Richard DeGeorge writes, “The second Marxist claim is that capitalism is inherently immoral because it alienates human beings” (p. 152). The claim that capitalism alienates humans is based on the theory that objects come to dominate people. In some situations in American society this can be true. According to DeGeorge, “Under capitalism, Marx observes, objects come to dominate people. People are judged by what they have, not by what they are.” (p. 152). Some people work their whole life to acquire possessions and these objects mean everything to them. Sometimes the pursuit of these possessions can create financial instability for these individuals. If you step back and look at America and capitalism as a whole you will find that this theory is unjustified. Marx also claims that capitalism alienates people by dividing them
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Some of these critiques are based on capitalism and the business practices from the late 19th and early 20th centuries. Also pre-capitalistic Europe was dominated by aristocrats. The aristocracy was the only group of people allowed to own land and hold titles. Most people worked hard in the fields for little compensation and were basically bound to the class into which they were born. Capitalism allowed members of the lower classes to create their own wealth and own property. Capitalism has evolved over time with the advent of unions for workers’ protection and the globalization of the

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