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Marxism & Business


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Application of Marxist philosophy in commerce, business & economics

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Marxism & Business

  1. 1. Marxism Contributions to the fields of Commerce & Economics A report by Raymund Sanchez
  2. 2. Content of the Report <ul><li>Background </li></ul><ul><ul><li>Biography of Marx </li></ul></ul><ul><ul><li>Development of the school of thought </li></ul></ul><ul><li>Theories </li></ul><ul><ul><li>Key terms </li></ul></ul><ul><ul><li>Key concepts </li></ul></ul><ul><li>Contributions </li></ul>
  4. 4. Background <ul><li>Karl Heinrich Marx </li></ul><ul><li>Born: May 5, 1818 </li></ul><ul><li>Died: March 14, 1883 </li></ul><ul><li>Father: Heinrich Marx, a successful lawyer, was a man of the Enlightenment, devoted to Kant and Voltaire, who took part in agitations for a constitution in Prussia </li></ul><ul><li>Mother: Henrietta Pressburg, native of Holland </li></ul><ul><li>Religion: parents born Jewish but converted to Evangelical Established Church due to work requirements </li></ul>
  5. 5. Background <ul><li>Spouse: Jenny von Westphalen, the educated daughter of a Prussian baron </li></ul><ul><li>Children: 3 of 7 survived to adulthood due to poverty. Jenny Caroline, Jenny Laura, & Edgar </li></ul><ul><li>Income: patronage from Friedrich Engels, writing, & inheritance of spouse </li></ul><ul><li>German philosopher, political economist, historian, political theorist, sociologist, communist and revolutionary, whose ideas are credited as the foundation of modern communism </li></ul>
  6. 6. Development of Marxism <ul><li>Karl Marx & Friedrich Engels began collaboration in September 1844 </li></ul><ul><li>Pair established the Communist Correspondence Committee in January 1846 </li></ul><ul><li>Published the Communist Manifesto in February 1948 </li></ul><ul><li>Marx’s death in March 14, 1883 leads to breakup of Marx-Lenin communist philosophy & subdivision of Marxism </li></ul>
  7. 7. Influences of Marxism <ul><li>German philosophers: </li></ul><ul><ul><li>Immanuel Kant </li></ul></ul><ul><ul><li>Georg Wilhelm Friedrich Hegel </li></ul></ul><ul><ul><li>Ludwig Feuerbach </li></ul></ul>Immanuel Kant Georg Hegel Ludwig Feuerbach
  8. 8. Influences of Marxism <ul><li>British political economists: </li></ul><ul><ul><li>Adam Smith </li></ul></ul><ul><ul><li>David Ricardo </li></ul></ul>Adam Smith
  9. 9. Influences of Marxism <ul><li>Ancient materialism: </li></ul><ul><ul><li>Epicurus </li></ul></ul><ul><ul><li>Lucretius </li></ul></ul><ul><ul><li>Aristotle </li></ul></ul><ul><ul><li>Giambattista Vico </li></ul></ul><ul><ul><li>Lewis Morgan </li></ul></ul><ul><ul><li>Charles Darwin </li></ul></ul>Epicurus
  10. 10. THEORIES
  11. 11. Key Terms <ul><li>EXPLOITATION: A person is exploited if he or she performs more labor than necessary to produce the goods society consumes; like-wise, a person is an exploiter if he or she performs less labor than is necessary to produce goods. </li></ul>Burmese sweat shop
  12. 12. Key Terms <ul><li>ALIENATION: the estrangement of people from their humanity which is a systematic result of capitalism. </li></ul>
  13. 13. Key Terms <ul><li>HISTORICAL MATERIALISM: societal development and change in the collective ways humans use to make the means for living. </li></ul>
  14. 14. Key Terms <ul><li>CLASS CONSCIOUSNESS: the awareness — of itself and the social world — that a social class possesses, and its capacity to rationally act in their best interests. </li></ul><ul><li>Classifications: </li></ul><ul><ul><li>PROLETARIAT : individuals who sell their labor power, and in the capitalist mode of production, do not own the means of production. </li></ul></ul><ul><ul><li>BOURGEOISIE : those who own the means of production and buy labor power from the proletariat, thus exploiting the proletariat </li></ul></ul><ul><ul><li>PETIT BOURGEOISIE:  are those who employ laborers, but who also work, i.e. small business owners, peasant landlords, trade workers et al. </li></ul></ul><ul><ul><li>LUMPENPROLETARIAT : criminals, vagabonds, beggars, et al., who have no stake in the economy, and so sell their labor to the highest bidder. </li></ul></ul><ul><ul><li>PEASANTRY AND FARMERS </li></ul></ul>
  15. 15. Key Terms <ul><li>POLITICAL ECONOMY: the study of the conditions under which economic production was organized in the capitalist system. </li></ul>
  16. 16. Key Terms <ul><li>LABOR: work exerted to produce a good or a service </li></ul>
  17. 17. Key Concepts <ul><li>THE DIALECTICAL AND MATERIALIST CONCEPT OF HISTORY — Humankind's history is fundamentally that of the struggle between social classes. </li></ul>
  18. 18. Materialist Concept Of History <ul><li>Primitive communism </li></ul><ul><li>Slavery </li></ul><ul><li>Feudalism </li></ul><ul><li>Capitalism </li></ul><ul><li>Communism </li></ul>
  19. 19. Key Concepts <ul><li>THE CRITIQUE OF CAPITALISM — In capitalist society, an economic minority (the bourgeoisie) dominate and exploit the working class (proletariat) majority. </li></ul>
  20. 20. Critique Of Capitalism <ul><li>I spent 3 hours creating a product, in the process I consume means of production that sometime in the past required 2 hours to produce – i.e., they have a value of 2 hours. The value of my product will be: </li></ul><ul><li>mp + lt = 2 + 3 = 5 (in units of hours.) </li></ul><ul><li>where: mp = means of production </li></ul><ul><li>lt = labor time </li></ul><ul><li>labor = average quality </li></ul>
  21. 21. Critique Of Capitalism <ul><li>Expenditure: = mp + lv </li></ul><ul><li>Where: lv = value of the labour(-power). </li></ul><ul><li>Income: = value of product </li></ul><ul><li>= mp + lt </li></ul><ul><li>Difference: = lt – lv </li></ul><ul><li>= surplus value </li></ul>
  22. 22. Key Concepts <ul><li>ADVOCACY OF PROLETARIAN REVOLUTION — In order to overcome the fetters of private property the working class must seize political power internationally through a social revolution and expropriate the capitalist classes around the world </li></ul>
  24. 24. Contributions <ul><li>Marx also expanded greatly on the notion that laborers could come to harm as capitalism became more productive. </li></ul><ul><li>WAGE DETERMINATION: Marx offered a theory of how a relative surplus population in capitalism tended to push wages to subsistence levels. </li></ul>
  25. 25. Contributions <ul><li>DISTRIBUTION OF WEALTH / PROFIT: profit was a deduction from society's output and that wages and profit were inversely related: an increase in profit came at the expense of a reduction in wages. </li></ul><ul><li>CONCEPT OF PRODUCT VALUE: Marx employed a labor theory of value, which holds that the value of a commodity is the socially necessary labor time invested in it. </li></ul>
  26. 26. Contributions <ul><li>FACTORS OF PRODUCTION: contributed to the development of the economic concept </li></ul><ul><ul><li>labor, &quot;the personal activity of man.&quot; </li></ul></ul><ul><ul><li>the subject of labor: the thing worked on. </li></ul></ul><ul><ul><li>the instruments of labor: tools, laboring domestic animals like horses, chemicals used in modifying the subject, etc. </li></ul></ul>
  27. 27. -END- Questions?