Karl Marx
Karl Heinrich Marx (1818 –1883) was a Prussian philosopher, political economist, a scholar and a political activist, often called the father of communism. Marx addressed a wide range of issues; he is most famous for his analysis of history, summed up in the opening line of the introduction to the Communist Manifesto (1848): "The history of all hitherto existing society is the history of class struggles." Marx believed that capitalism would be replaced by socialism which in turn would bring upon communism.
Marx did not believe that all people worked the same way, or that how one works is entirely personal and individual. Instead, he argued that work is a social activity and that the conditions and forms under and through which people work are socially determined & change over time.
Marx's analysis of history is based on his distinction between the means / forces of production, literally those things, such as land, natural resources, and technology, that are necessary for the production of material goods, and the relations of production, in other words, the social and technical relationships people enter into as they acquire and use the means of production. Together these comprise the mode of production; Marx observed that within any given society the mode of production changes, and that European society had progressed from a feudal mode of production to a capitalist mode of production. In general, Marx believed that the means of production change more rapidly than the relations of production (for example, we develop a new technology, such as the Internet, and only later do we develop laws to regulate that technology). For Marx this mismatch between (economic) base and (social) superstructure is a major source of social disruption and conflict.
Marx was especially concerned with how people relate to that most fundamental resource of all, their own labour power. Marx wrote extensively about this in terms of the problem of alienation. As with the dialectic, Marx began with a Hegelian notion of alienation but developed a more materialist conception. For Marx, the possibility that one may give up ownership of one's own labour — one's capacity to transform the world — is tantamount to being alienated from one's own nature; it is a spiritual loss. Marx described this loss in terms of commodity fetishism, in which the things that people produce, commodities, appear to have a life and movement of their own to which humans and their behavior merely adapt. This disguises the fact that the exchange and circulation of commodities really are the product and reflection of social relationships among people. Under capitalism, social relationships of production, such as among workers or between workers and capitalists, are mediated through commodities, including labor that are bought and sold on the market.
Marx distinguished industrial capitalists from merchant capitalists. Merchants buy goods in one market and sell them in another. Since the laws of supply and demand operate within given markets, there is often a difference between the price of a commodity in one market and another. Merchants, then, practice arbitrage, and hope to capture the difference between these two markets. According to Marx, capitalists, on the other hand, take advantage of the difference between the labor market and the market for whatever commodity is produced by the capitalist. Marx observed that in practically every successful industry input unit-costs are lower than output unit-prices. Marx called the difference "surplus value" and argued that this surplus value had its source in surplus labor, the difference between what it costs to keep workers alive and what they can produce.
The capitalist mode of production is capable of tremendous growth because the capitalist can, and has an incentive to, reinvest profits in new technologies. Marx considered the capitalist class to be the most revolutionary in history, because it constantly revolutionized the means of production. But Marx argued that capitalism was prone to periodic crises. He suggested that over time, capitalists would invest more and more in new technologies, and less and less in labor. Since Marx believed that surplus value appropriated from labor is the source of profits, he concluded that the rate of profit would fall even as the economy grew. When the rate of profit falls below a certain point, the result would be a recession or depression in which certain sectors of the economy would collapse. Marx understood that during such a crisis the price of labor would also fall, and eventually make possible the investment in new technologies and the growth of new sectors of the economy.
Marx believed that this cycle of growth, collapse, and growth would be punctuated by increasingly severe crises. Moreover, he believed that the long-term consequence of this process was necessarily the enrichment and empowerment of the capitalist class and the impoverishment of the proletariat. He believed that were the proletariat to seize the means of production, they would encourage social relations that would benefit everyone equally, and a system of production less vulnerable to periodic crises. In general, Marx thought that peaceful negotiation of this problem was impracticable, and that a massive, well-organized and violent revolution would be required, because the ruling class would not give up power without violence. He theorized that to establish the socialist system, a dictatorship of the proletariat - a period where the needs of the working-class, not of capital, will be the common deciding factor - must be created on a temporary basis. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat." Yet he was aware of the possibility that in some countries, with strong democratic institutional structures this transformation could occur through peaceful means, while in countries with a strong centralized state-oriented traditions, like France and Germany, the upheaval will have to be violent.
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