Ever since the dawn of the capitalist economics, scholars from various fields have continually been divided in support of and against its underlying theories and principles. While it has been dominant for the last half-century, capitalism has been widely criticized based on various political and philosophical perspectives. The prevailing line of thought, however, has been that capitalism fosters inequality, unsustainability, and, most notably, exploitation. For this essay, however, the primary focus is on Marx’s criticism of capitalism based on his theory of labor exploitation and its ensuing implication for the economy and the labor market. The essence of this exercise, therefore, is to develop a deeper understanding of Marx’s ideological perspective as well as the considerations of capitalism in the global market economy.
Marx’s Theory of Exploitation
Marx’s Theory of Exploitation builds upon the premise that complexities associated with the accumulation of economic power ultimately give rise to situations in which those with power constantly leverage their positions. The intention is to exploit the efforts and labor of the lower classes. This phenomenon creates an environment in which one group continually gains at the expense of another group that is caught up in a cycle of poverty (Marx, pp. 70-74). Marx’s theory primarily acknowledges the significance of labor within any given economy. Furthering this view, he espouses the idea that labor differences should be hinged on the skill and knowledge superiority of the individual as employee labor rights are largely equal. Borrowing from his rich and wide experience as an economic analyst, Marx, points out that an effective economy is characterized by a commensurate amount of labor for any given product (p. 12). From his point of view, therefore, exploitation in capitalist systems arises from the fact that workers are compelled to sell their knowledge and skills at a much lower value than the commodities produced as a result of their input.
For Marx, while all class-based societies depict exploitation tendencies, in capitalism exploitation is the driving force for the capitalist. In other words, workers in a capitalist system are forced to produce for capitalists owing to the power imbalance between those who own the means of production and the laborers. This relationship is further worsened by the fact that workers are accorded a mere portion of the actual value they produce, much of which is skimmed off by capitalists. Therefore, the exploitative nature of capitalism lays in the commodification of labor power which subjects workers to market prices. Marx states that this is an oversimplification of labor ignoring the fact that it is only through labor-poweroductivity is achievable as it allows for production beyond the bare minimum (p. 67).
Marx’s theory argues that one of the characteristics of a civilized society is the ability to deal with the diverse problems and challenges that arise in comparison to an uncivilized state in which the masses confer their powers to the government without necessarily countering the problem (Marx, pp. 75-77). He raises this point to highlight the inherent inefficiencies of capitalism in that its exploitation of the workforce affects the overall performance of the economy considering to the plight of workers. Marx refers to the results of multiple studies that highlight how free economies are synonymous with greater productivity and efficiency as compared to centralized ececonomy since free economies make it possible for greater creativity and innovation (p. 73).
Marx’s criticism of capitalism is based on the fact that it bequeaths the capitalists with power stolen from the workers. In other words, despite the efforts and input of the workers in a bid to enhance their economic status, their fate is tied to the benevolence of those owning the means of production. As a result, employee efforts, needs, and interests are used as avenues for the meager wages they receive rather than being used as incentives that will allow them greater satisfaction in their respective roles. This school of thought emanates from the concept of real costs (Marx 111). According to Marx, ideal market conditions allow for increased productivity that results in surpluses. However, the real social cost of production is of significance, which according to Marx, should depict both labor and capital costs. It is through this distinction it becomes possible to justify the distribution of the produced surplus in society.
Based on Marx’s theory of exploitation, capitalism is but the cause of most of the social ills in contemporary society. By fostering economic inequality, unsustain, inability and exploitation, the working class is left to grapple with the harsh realities of their existence forcing many into desperation and bitterness. It is within such a context that crime, violence and other injustices emerge. In light of this view, Marx’s solution to the exploitative nature of capitalism was establishing an impartial approach to resource distribution (Marx, p. 336). In this regard, he proposed the need to ensure that the highly productive individuals are rewarded in accordance with the degree of their effort and participation in the production process.
Marx’s theory of exploitation provides a basis for understanding some of the socio-economic and political challenges of contemporary society. Having adopted the capitalist economy and political ideology for over half aa century society has subtly created a socio-cultural, ecological, and economic disaster. Unsustainable resource use and distribution have not only widened the gap between the rich and the poor but that it also contributed to devastating environmental degradation. As a result, the world is experiencing tremendous social and climatic upheavals. Besides increasing rates of economically and ecologically-motivated immigration, local and regional resource-based conflicts have also intensified. Therefore, Marx’s theory of exploitation provides an accurate and objective framework of analyzing the limitations of the capitalist ideology while also providing insights regarding remediation strategies.
Capitalism has been touted as one of the greatest political and economic catastrophes of modern times. As is evident in Marx’s argument, the capitalist system thrives on the exploitation of the poor masses by those who control the means of production. Marx’s theory of exploitation sets out to highlight the inherent flaw within the capitalist ideology by underlining how it shortchanges the workers resulting in an unequal balance of power between laborers and those who control the means of production. Ultimately, it is the commodification of labor that Karl Marx considers to be the main failure of capitalism. The subjection of labor power to market forces ultimately diminishes the power of the worker. The resolution of this capitalist flaw lays in the adoption of robust labor laws that focus on protecting the needs and interests of workers while maintaining the productivity efficiencies of the capitalist economic system.
Marx, Karl. Capital: An Abridged Edition. Edited by David McLellan, Oxford UP, 2008.