Marxian Economics (L6) Flashcards
What is Historic Materialism, and why is it central to Marx’s theory?
Key Points:
History shaped by material conditions and class struggle.
Forces of production (tools, technology) evolve, creating conflicts with relations of production (power structures).
Leads to revolutionary shifts (e.g., capitalism replacing feudalism).
Explain Marx’s Labour Theory of Value.
Key Points:
Labour produces value; workers sell their labour power to capitalists.
Surplus labour: Extra labour beyond subsistence creates capitalist profit.
Exploitation: Workers underpaid for the value they produce.
What are the contradictions of capitalism, according to Marx?
Key Points:
Alienation: Workers disconnected from product, process, and humanity.
Falling Rate of Profit: Rising machinery use reduces labour and profits.
Reserve Army of Labour: Unemployment pressures wages and conditions.
Commodity Fetishism: Masks exploitation in production.
How does Marx explain class struggle in historical movements?
Key Points:
Class conflict drives societal change (e.g., slaves vs. masters, workers vs. capitalists).
Revolutions occur when productive forces outgrow existing relations of production.
End Goal: Classless society where production meets communal needs.
What is Commodity Fetishism, and why is it significant in Marxian economics?
Key Points:
Commodities appear to have intrinsic value, hiding the labour behind them.
Masks the exploitation and alienation inherent in capitalist production.
Reinforces a system where social relations are replaced by material obsession.
What role does the Reserve Army of Labour play in capitalism?
Key Points:
Unemployed workers act as a disciplinary force, suppressing wages.
Expands with technological advancements, creating instability.
Contributes to economic crises and societal change.
Discuss the Falling Rate of Profit and its implications for capitalism.
Key Points:
Technological advances reduce reliance on labour (variable capital).
Profit, derived from labour, declines as constant capital (machinery) rises.
Temporary balance through increased exploitation, but long-term instability.
How does Marx critique classical economic theories of profit?
Key Points:
Classical economists see profit as arising from exchange.
Marx: Profit comes from unpaid surplus labour, not fair exchange.
Exploitation is inherent in the productive process, as workers are systematically underpaid for the value they create.
What are the key features of Marx’s mode of production concept?
Key Points:
Forces of Production: Tools, technology, and knowledge shaping production.
Relations of Production: Social and power dynamics governing production (e.g., worker vs. capitalist).
Interaction between forces and relations determines the mode of production (e.g., feudalism, capitalism).
Conflicts in these dynamics drive historical change.
How does Marx’s theory of reproduction schemes explain economic crises?
Key Points:
Simple Reproduction: All surplus used for consumption, sustaining the economy.
Expanded Reproduction: Part of surplus reinvested, driving capital accumulation.
Imbalances between capital goods and consumer goods in expanded reproduction lead to cyclical crises.
These crises expose capitalism’s inability to maintain equilibrium.
What is the significance of Marx’s critique of commodity fetishism?
Key Points:
Commodities appear to have intrinsic value, obscuring the labour and exploitation behind them.
Fetishism distorts social relations, prioritizing material goods over human connections.
Reinforces capitalist alienation and exploitation.
How does technological advancement contribute to capitalism’s instability?
Key Points:
Advances increase reliance on machinery (constant capital), reducing labour (variable capital).
As profit comes from labour, less labour reduces profit rates (falling rate of profit).
Temporary fixes include increased exploitation, but long-term consequences lead to economic instability and crises.
How do Marx and Engels distinguish between the economic base and the superstructure?
Key Points:
Base: Forces and relations of production (economy).
Superstructure: Social institutions, culture, and ideology shaped by the base.
Changes in the base drive societal transformations (e.g., revolutions).
How does Marx use the dialectic to explain social change?
Key Points:
Dialectic: Contradictions within a system (e.g., between forces and relations of production) lead to conflict and transformation.
Example: Industrial revolution intensified class divides, setting the stage for capitalist transformation and eventual revolution.
