(L5) Sandmo Chapter 6 Flashcards
What is debated about Karl Marx’s role in economic theory?
Marx’s role in economic theory is debated, with recognition more in the socio-political realm than in pure economics.
What does modern economics seldom reference?
Modern economics seldom references Marx directly, yet his ideas underpin many political and economic systems.
What was Karl Marx’s background?
Born in Trier, Germany, Marx studied law and philosophy.
Who did Karl Marx marry and what was his family life like?
Marx worked as a journalist and married Jenny von Westphalen, with whom he had seven children.
How did Karl Marx’s view on communism develop?
Marx became a convinced communist in Paris and later met Friedrich Engels, which led to their collaboration on the ‘Communist Manifesto’.
What is the significance of ‘Das Kapital’ in Marx’s work?
‘Das Kapital’ is Marx’s main work, providing a thorough critique of capitalism.
How did Marx spend his later life?
Marx spent his later life in the British Museum, struggling financially while continuing to write.
What did Marx’s economic analysis provide?
Marx provided a systematic critique of capitalism and had a substantial influence on global political and social development.
What is the mode of production according to Marx?
The mode of production is the way society is organized around production processes.
What does Marx’s theory of the falling rate of profit suggest?
Marx believed capitalism’s inherent flaw was the falling rate of profit, leading to its eventual breakdown.
What is the purpose of production in capitalism according to Marx?
In Marx’s view, the purpose of capitalist production is the creation of surplus value, not the satisfaction of needs.
What is the theory of the ‘industrial reserve army’?
Marx predicted that increasing wealth and capital would not ensure full employment, leading to an ‘industrial reserve army’ of unemployed.
What is Marx’s legacy as an economic thinker?
Marx is seen as an unsuccessful model builder but an influential economic thinker whose work has significantly impacted economics and politics.
What was Friedrich Engels’ contribution to Marx’s work?
Engels provided moral and economic support for Marx, and posthumously, he edited and systematized Marx’s volumes of ‘Capital’.
