Marx 's Theory On Minimum Wage Essay

1241 Words Oct 6th, 2016 5 Pages
Summary Karl Marx proposes several ideas about the political economy from modes of production to labor power and wages. With laborers and their labor power, Marx hypothesizes the the true minimum wage should be enough to ensure subsistence. Subsistence is defined as the minimal amount of necessities, such as food and shelter, for laborers to maintain their health in order to return to work the following day (Marx, “Labour-Power and Capital,” p.50). I propose to test this hypothesis by looking at the United States’s (U.S.) minimum wage and whether it’s enough for low-wage workers to get by with. The method used to evaluate this hypothesis will be examining important benchmarks used for minimum wage from purchasing power, wage growth, and productivity growth. Data pulled from governmental and agency sources will be analyzed to determine whether the current minimum wage, $7.25, is actually enough for the American laborer to get by with (The Editorial Board, 2014).

II. Theory To understand Marx’s hypothesis on minimum wage, one must understand his perception of the market environment the laborer employed is in it. Marx critiques the political economy for production “in this society of free competition the individual seems detached from the natural ties, etc., which in earlier historical epochs make him an appurtenance of a particular, limited human conglomeration” (Marx, “Preface and Introduction,” p.9). Marx is discussing how society has evolved from a cohesive group to an…

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