CHAPTER 10
Marx
Critique and Alternative to Capitalism
LEARNING OBJECTIVES
Understand capitalism from a Marxist perspective.
Explain how Marx saw society moving from capitalism to socialism.
OUTLINE OF CHAPTER
I. Historical Materialism
VI. Economic Crises
VII. Economic Concentration
KEY TERMS
aggregate
the entire economy comprised of all the buyers and all
the sellers
exploitation
and the general level of technology
intellectual tradition or ideology as related in a complex web of cause and effect to all the others
in that particular social-economic system
ideological superstructure
includes all of our ideas, ideologies, and traditions, plus all of the institutions that spread those
ideas, such as churches, schools, and the media of communication
labor power
labor theory of value
ANSWERS TO END OF CHAPTER REVIEW QUESTIONS
Understand capitalism from a Marxist perspective.
1.
Historical materialism was an analytical approach that saw each social, political, and
2. Explain the concept of a mode of production. What are the four modes of production
Europe experienced?
The mode of production consists of two elements: 1) the forces of production and 2) the
3. What did all four modes of production have in common? How was socialism different in
Each mode of production saw a conflict between the changing forces of production and
4. Name the four classes present in any capitalist system and explain their respective roles
in society.
The capitalists owned the means of production and had the most power. Small
5. What four classes of people existed in a capitalist society? What characteristics does
each class possess?
The capitalists, small shopkeepers and independent crafts persons or professional
6. List and describe the two important functions served by the unemployed and explain why
they are important to capitalism.
7. What is surplus? How does the owner of the means of production calculate his profit?
The surplus consists of the difference between the expenses in the form of wages,
8. Describe the source of income for each of the four main classes under capitalism as
described by Marx. . From what are interest, rents, profits, and taxes derived?
The capitalists receive income from ownership profit, interest and rent. Workers
9. Explain the labor theory of value and labor as the source of surplus.
The labor theory of value holds that the exchange value of a commodity was determined
10. Explain how Marx sees workers being exploited.
Exploitation occurs because the average length of the working day exceeded the time
11. How does capitalism alienate the worker in society? How does it affect the worker?
12. What is the present justification for allowing the existence of profits for the owners of
capital? Why does Marx refute this argument?
The existence of profits is justified profits as the fruits of high moral character, because
13. Why is Marx concerned about labor being treated just like any other commodity? What
impact does it have on the social nature of work?
Treating labor like any other commodity alienates workers, because they have no control
Explain how Marx saw society moving from capitalism to socialism.
14. What role do economic crises play in the business cycle? What prerequisites are
necessary for the modern business cycle and why are they only possible under a capitalist
system?
A crisis occurs when there is insufficient demand. This does not occur under a feudal
15. What will eventually happen to the capitalist mode of production if class conflict
continues?
16. Why would profits ever decline and cause the downturn in a business cycle? How do
workers get shorted no matter what stage of the business cycle the economy is in?
17. Which factors about the economy inevitably lead to economic concentration?
18.
socialism? Explain how the transition will occur if not by the state.