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Explain briefly Karl Marx's economic theory about the exploitation of labour in a capitalist system. - Leaving Cert Economics - Question d - 2013
Question d
Explain briefly Karl Marx's economic theory about the exploitation of labour in a capitalist system.
Worked Solution & Example Answer:Explain briefly Karl Marx's economic theory about the exploitation of labour in a capitalist system. - Leaving Cert Economics - Question d - 2013
Step 1
Understanding the Concept of Exploitation
Answer
Karl Marx's theory of exploitation centers around the idea that labour is fundamental to value creation in a capitalist system. He argues that workers, who contribute their labor to the production process, do not receive equivalent compensation for the value they generate. This discrepancy leads to the accumulation of surplus value by capitalists, who own the means of production.
Step 2
The Role of Surplus Value
Answer
Surplus value arises when workers produce more value through their labour than the wages they are paid. According to Marx, this difference between the value produced and the cost of labor is a form of exploitation. For instance, if a worker is paid 200 worth of goods, the $100 surplus is appropriated by the capitalist.
Step 3
Capital Accumulation and Class Struggle
Answer
Marx theorizes that this exploitation leads to class struggles between the bourgeoisie (capitalist class) and the proletariat (working class). The capitalist class seeks to maximize surplus value and profit, often at the expense of the workers' rights and well-being. This inherent conflict is central to Marx's critique of capitalism.
Step 4
Alienation of Labour
Answer
In addition to exploitation, Marx discusses the alienation of labor, where workers become disconnected from the products of their work. They do not have ownership or control over what they produce, leading to a sense of powerlessness and dissatisfaction. This alienation is both a consequence and a reinforcement of exploitation in a capitalist system.