Table of Contents
According to Marx, profit of capital refers to the capital gain, which results from the sale of any capital assets. The sale of this capital asset should exceed the buying price of those assets. Moreover, profit capital is important in stabilizing both social and political economy of the capitalists.
Marx uses Adams Smith’s political, economic critique to explain the profit of capital in the following ways. The foremost technique he presents is the tendency of rate surplus value to increase (Marx & Engels 87). In fact, to make the capital production grow, all the amount of unpaid labor must be enhanced as opposed to the paid one performed by the working class. When productivity of work grows, the ratio of the unpaid laborers will also increase without reducing the normal standards of living of those working and those being below the level of production.
In addition, he uses the concept of rise in the organic composition of the capital. Here, he referred to the competition that may exist between various industrial capitalists, for example, between the buyers and sellers. In this case, the capitalist may introduce the machines, which replaces workers when the rate of surplus tends to show the threat of falling. Therefore, the competition between the workers and the machines will increase the political and social production. In the capital of production, development in science and technology tends to strengthen the profit of capital. Therefore, the rate of profit is not dependent on the rise in the surplus value.
The third criteria mentioned in the analysis was the growth in the total amount of the related profit. The increase of profit in most cases tends to decline as the mass profit enhances progressively with the development in the profit of capital. To maintain the growth in the mass profit, the rate of gain in the capital of profit must decline first to ise in the production of any political or economic growth. Finally, Adams Smith uses the analogy of increasing difficulty realizing the value and the surplus value. In his arguments, he applies theoretical and empirical approach where the market while growing causes a rise in the production of greater amounts of money used in the material gold. Thus, the surplus values have more effect on the profit of capital than on realizing the capital. Therefore, Marx’s quote “Labor is life” is largely used in the political economy.
Four Types of Alienation Introduced by Karl Marx
Alienation from the Product
Alienation from the product refers to the relation between the workers and the product. In some cases, a person may assume that the goods were made because the activities involved in the production were alienated. According to Marx, person’s alienation from the product can be viewed as one of the main constituents of the alienated activity, thus, product alienation appears as a result of ruination of the workers’ own body and mind.
Focusing on product alienation, Marx mainly emphasizes the labor realization and its objections. However, human productive activity can be viewed as the main aim of the products in the society. What mainly differentiates them is the objection to capitalism having the main roots in labor alienation. In his argument, the worker can create nothing without nature. Thus, there must be an inclusion of the external world. Therefore, nature provides labor, which in most cases is alienated by human activities.
Alienation from People
This kind of alienation exists when people are forced to work regardless of individual desires. However, Marx gives it a little attention since the capitalists may experience a more alienation from people. In the capital society, when the product is made, there are more objections of labor and human alienation to the item produced, thus, a kind of resistance that automatically affects the profit of capital occurs. In this kind of alienation, there is a lot of hostility to the product over which the good needs to be relinquished under control of labor (Marx & Engels, 146). Hence, it also means that inhuman power affects the production of labor. If the productive power of the workers is high, it can be easily controlled by the owners. Thus, the workers can produce more to the society but they cannot benefit individually, whereas the owners tend to control the greater proportion of the required wealth. Consequently, the workers may alienate from doing the work.
Alienation from Work
Alienation from labor shows a direct relationship that exists between the workers and the object of production. Alienation from work also becomes more monotonous and automated, thus, affecting the profit of capital. It mainly takes one aspect which concentrates on the workers’ relationship to the products of labor. Moreover, the labor alienation primarily applies the external labor to the worker. From the phenomenon side, labor is a form of external aspect to the workers since the employees’ relationship does not belong to the essential being. Therefore, it prevents the person from a chance to work freely when labor is alienated. In addition, the estrangement of work is mainly manifested in the production of items, which increases the profit of a product. Thus, both political and economic production is stranded in case the workers alienate the labor.
According to Marx, it is always hard to understand this kind of alienation but in real sense, it means that human beings are mostly inclined to the work. It usually happens when a job that requires human spirit exists. Therefore, Marx considers the alienated work more as an artisan who owns his or her business and likes it so much.
Related Economics essays
- Factors Influencing Foreign Market Entry Mode
- Deficit Spending
- The Analysis of Exxon Mobil
- "Flat Tax" Rate
- Persuasive Message and Analysis
- Federal Budget
- Chinese Policy
- The Economic System in Islam
- Essay Questions. Neoclassical Economics and the Contribution of Keynes to Economics
- Functions of the Central Bank of Kenya