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Alienation occurs when humans are dehumanized and unable to live fulfilling lives exploitation occurs when humans are treated as objects and used as a means to an end Marx aimed to investigate the causes of social instability.
He shared some of Rousseau's assumptions that there was a stage in a 'state of nature' where families all shared the means of production without anyone being exploited.
However, as a society, we reached a point of being able to create a surplus at this point and class divisions occurred between those who had the means to produce more and those who did not (land owners).
This is seen in the feudal system where the feudal lords own the land and therefore, the means of producing food. The serfs, who work the land but do not own it are reliant on the lords for access to the means of producing food and must give their surplus to the lords in return for the job working the land.
This soon led to competition an alienation through the introduction of a capitalist culture. The theory of Alienation states that workers become estranged from their humanity as a consequence of living in a society in which capitalism is a mode of production. Capitalism changed the relationship between people and the means of production. This shift caused social division where the wealthy (the bourgeoisie) who owned the means of production are divided from the workers (the proletariat).
This shift results in alienation.
Religion gives power to the state or ruling group to control the population by stating that God's natural order is that some people are born to be rulers and some servants and if this seems unfair it is okay because it will be fixed in the afterlife. Exploitation is taking unfair advantage of someone. It is to use another person's vulnerability for one's own benefit.
Marx subscribed to a labour theory of value, which means that just like any other commodity such as butter or corn, the price (or wage) of labour power is determined by its cost of production.
Marx thought that workers under capitalism would therefore be paid just enough to cover the bare necessities of living. They will be paid subsistence wages.
The natural consequence of alienation is exploitation. This is because, through alienation, people become dehumanized and therefore easily exploited. In a modern-day example, a consequence of globalization would be that where some factories make technological improvements that reduce costs making it cheaper for them to produce a pair of jeans, other factories drive down wages in order to compete. We are happy because our jeans are cheaper now, but, this has come at the price of exploitation.
Ultimately, Marx argues that capitalism and religion both result in the alienation and exploitation of others. Liberation theology focuses on the idea that action should be taken to support those who are being alienated and exploited. (Note that liberation theologians would not agree with Marx that religion is a cause of this)
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