Karl Marx

Question 1

Briefly explain Marx’s theory of History?

Answer 1

Forces of production are dynamic conflict with relations of production ( due to superstructure) because they are static. Leads to revolution where new superstructure and relations of production are created.

Question 2

How does this theory of history play out in practice? Describe each stage.

Answer 2

Capitalism (production techniques concentrated and centralized, unemployment - revolt) > Socialism ( private ownership, capital & land publicly owned, no profit motive & free markets) > Communism (a theory or system of social organization in which all property is owned by the community and each person contributes and receives according to their ability and needs) .

Question 3

Briefly explain what happens in a capitalist society. ( Use the diagram of law of motion of capitalist society)

Answer 3

Determination of value > exploitation > K accumulation due to profits > falling profit ( profit rate equation) > business crises > technological unemployment > Centralization of capital and concentration of wealth > High unemployment > Class conflict > Socialism

Question 4

Outline Marx’s four key beliefs.

Answer 4

1. Reject harmony of interests notion
2. Oppose laissez-faire
3. Reject Say’s law of markets
   (the ability to purchase something depends on the ability to produce and thereby generate income.)
4. Advocate collective action and public ownership.