Theoretical Background:Marx and Marxism

04 Feb 2014Dr Ashley Frawley

Objectives By the end of this session you should:

Be more familiar with what ‘Marxism’ means as a theory of economics, history and society

Be able to identify the functions of the welfare state from a Marxist perspective

Question

What do you think Karl Marx would think of the modern welfare state?

What is Marxism? Developed by Karl Marx (1818-1883) and Friedrich

Engels (1820-1895) Since then, ‘Marxism’ has come to mean many different

things, but let’s stick with Marx… An economic theory of how capitalism works

Descriptive not prescriptive How things do work, not how they should work

Continuation of classical economics of Smith and Ricardo

A theory of history and the development of society Historical materialism (see Jakubowski, 1976)

Typically expressed as ‘base-superstructure’ Social reality (superstructure) a reflection of the material relations

of production (the economic ‘base’ of society) Dialectical, not deterministic

Marxism – An economic theoryWhat is capitalism? A system in which commodities are

produced for exchange (rather than use) Step 1. Invest · Step 2. ???? · Step 3. PROFIT!!!

How is this possible?Exploitation of workers

Impossible to live without working—people must sell labour to capitalists who own means of production (factories, etc.)

Workers produce more than paid in wages Profit = difference between price of

commodity and wages paid to workers Capitalists live on unpaid labour of working

class Not a moral argument—even relatively

wealthy wage earners exploited

What is a commodity?

• Satisfies needs (use value)

• Can be sold (exchange value)

• Made with human labour (labour value)

Marxian Economics – still relevant?Notice that Marx avoided definitions Concepts described in terms of their relationships Nature of work may change, nature of capitalism

may change but some central relationships remain the same: Commodity still central Still governed by money commodity more money Most people do not own the means to reproduce their

existence, (workers) Those who do own the means of subsistence are able to

live on profits (capitalists) Marx’s theory of crisis

The ‘falling rate of profit’—some argue this is happening today (see also Kliman, 2012)

Marxism – A theory of historyHistorical Materialism Starting point: basic reality of human existence:

In order to survive from generation to generation must reproduce material requirements of life—must work on the world…

“The mode of production of material life conditions the general process of social, political and

intellectual life. It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness.”

(Marx, 1859)

Marxism – A theory of historyCapitalism once a revolutionary force, becomes a conservative force:“…the feudal relations of property became no longer compatible with

the already developed productive forces; they became so many fetters. They had to be burst asunder; they were burst asunder.”

“Modern bourgeois society…is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells…[In crisis] there breaks out an epidemic that, in all earlier epochs, would have seemed an absurdity — the epidemic of over-

production… The conditions of bourgeois society are too narrow to comprise the wealth created by them.”

Capitalism produces wealth that has capacity to free human beings from need and toil But capitalism must periodically destroy this wealth and enforce scarcity Must free productive forces from capitalism

Marxist perspective on the state The product of irreconcilable class antagonisms Organised oppression of one class by another ‘Special bodies of armed men’; monopoly on violence

‘…it became necessary to have a power, seemingly standing above society, that would alleviate the conflict and keep it within the bounds of 'order'; and this power,

arisen out of society but placing itself above it, and alienating itself more and more from it, is the state.’

(Engels in Lenin, 1917)

The state as an ideology—like religion—that keeps people from realising their oppression

Vision: ‘withering away of the state’—stateless society

Marxist perspective on the welfare state Neo-Marxists argue that the welfare state serves two main

functions (O'Connor, 1973 in Cousins, 2005, p. 21): Accumulation Legitimisation

Accumulation Ensuring opportunity for accumulation, i.e. ability of firms to make

profit e.g. builds infrastructure needed by capital, educates workers,

ensures healthy workforce Legitimisation

Introduces measures that encourage belief in possibility of reform; engenders acceptance of system as fair/representative

Sometimes ‘saves capital from itself’ (labour laws, etc.) Encourages belief all problems can be solved through welfare

state when many are intrinsic to capitalism (e.g. unemployment)

Criticisms Deterministic (Hill, 2006:24-25)

Too general to explain any one development (Cousins, 2005:22)

Can analysis be applied to different countries and contexts? (Kennett, 2013, p. 187)

Capitalism more complex now, not simple dichotomy of buyers and sellers of labour (Hill, 2006:184)

Others? What do you think?

Summing Up Marxism is a theory about the economic base

(capitalism) of society and the effect that this has on the development of the ‘superstructure’—ideas, laws, policies, etc.

Neo-Marxists are critical of the welfare state for serving the interests of capitalists and ‘pulling the wool over people’s eyes’

Welfare state appears to serve the interests of the working class, but only does this to a minimum to ensure social stability

Highly Recommended Kapitalism101 on YouTube:

Very clear explanation of Marx’s theories of economics and history

http://www.youtube.com/user/brendanmcooney/videos?flow=grid&view=1

Diet Soap Podcast Many discussions with contemporary Marxist

economists and social theorists on contemporary social issues

http://dietsoap.podomatic.com/

ReferencesCousins, M. (2005). European Welfare States. Comparative Perspectives. London:

Sage Publications. Hill, M. (2006). Social Policy in the Modern World. A Comparative Text. MA, USA:

Blackwell Publishing. Jakubowski, F. (1976). Ideology and superstructure in historical materialism.

London: Allison and Busby.Kennett, P. (2013). A Handbook of Comparative Social Policy. Cheltenham: Edward

Elgar.Kliman, A. (2012). The Failure of Capitalist Production: Underlying Causes of the

Great Recession. New York: Pluto Press.Lenin, V. I. (1917). The State and Revolution. Available at:

http://www.marxists.org/archive/lenin/works/1917/staterev/ch01.htmMarx, K. , and Engels, F. (1848). The Manifesto of the Communist Party. Available

at: http://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm

Marx, K. (1859). A Contribution to the Critique of Political Economy. Available at: http://www.marxists.org/archive/marx/works/1859/critique-pol-economy/preface.htm