Question 1(a) · 10 marks · 167 words written
The key to Marx's critique of capitalism is his theory of surplus-value. Analyse.
Opening
Karl Marx through his book 'Das Capital' (The Capital) put forth a profound thesis on various aspects of capitalism as it proliferated through the 19th and early 20th century.
Body · points and prose
Marx divides society into two class - bourgeoisie (capitalists) and proletariat (worker class). Capitalists have ownership of means of production and embark on a profit maximization spree.
Marx's main critique of capitalism is the increasing concentration of wealth with the bourgeoisie and the resultant pauperization of the proletariats.
This can be explained through his theory of surplus value. He uses the terms use-value and exchange value to explain dynamics of the capitalist system.
use value → minimum wage (for sustaining the labourer needs - food, procreation)
exchange value → market price that the capitalist realises using the labour
Difference between exchange value and use value is surplus value which is pocketed by the capitalist.
Close
As capitalism proliferates use value goes on decreasing and surplus to the capitalist increases which can be observed in contemporary society as increasing inequality.