Capitalism is a system in which profit is created through the means of investment and ownership of the means of production, distribution and exchange of wealth is made and maintained mainly by private individuals or businesses. In other words, capitalism is a profitable system which foundation is based on three interconnected things: labor wage, means of production and profit. Labor wage is people who are employed to work for a wage which leads to the means of production which include factories, machinery and tools and these things produces profit. As shown these three things are connected and cannot work without the other. During the years, capitalism has been the subject of criticism from varies perspectives in society. Some people
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Marx’s view on capitalism is that it would sooner or later ruin the working class or laborer which would create the social condition for rebellion. His view was based on the means in which production and distribution is created through the means of worker. The workers exchange their value for a wage to private owners which in return pay them a wage for their time producing something. As Marx writes: “whenever, by an exchange, we equate as values our different products, by that very act, we also equate, as human labor, the different kinds of labor expended upon them” (Capital, I: 74). In other words, in an exchange, the values differentiate based on the type of product being produce which will require a different level of labor. Karl Marx went further to discussed about social surplus in societies. There are two type of social surplus which are the surplus labor and the surplus value. The surplus labor is unpaid time the worker works to produce things while surplus value is the profit they get from the surplus labor. Overall, capitalism is the means of getting workers that will be pay at the lowest possible cost to produce things which gave them higher profit. As years pass the interaction between worker and capital changes when the workers come to realize that their economic interest lies in preventing the capital from exploiting them. From this, Marx believes that
Marx’s view on capitalism is that it would sooner or later ruin the working class or laborer which would create the social condition for rebellion. His view was based on the means in which production and distribution is created through the means of worker. The workers exchange their value for a wage to private owners which in return pay them a wage for their time producing something. As Marx writes: “whenever, by an exchange, we equate as values our different products, by that very act, we also equate, as human labor, the different kinds of labor expended upon them” (Capital, I: 74). In other words, in an exchange, the values differentiate based on the type of product being produce which will require a different level of labor. Karl Marx went further to discussed about social surplus in societies. There are two type of social surplus which are the surplus labor and the surplus value. The surplus labor is unpaid time the worker works to produce things while surplus value is the profit they get from the surplus labor. Overall, capitalism is the means of getting workers that will be pay at the lowest possible cost to produce things which gave them higher profit. As years pass the interaction between worker and capital changes when the workers come to realize that their economic interest lies in preventing the capital from exploiting them. From this, Marx believes that