Marxian perspective on the labour theory.pptx

Economic Environment of Business

1. Perspectives of Growth and Development MARXIAN PERSPECTIVES ON THE LABOUR THEORY OF VALUE AND THE FALLING RATE OF PROFIT PRESENTED BY SAYAN BACHASPATI REG NO:220202140004

2. Marxism is a social, political, and economic theory originated by Karl Marx, which focuses on the struggle between capitalists and the working class . Marx wrote that the power relationships between capitalists and workers were inherently exploitative and would inevitably create class conflict . He believed that this conflict would ultimately lead to a revolution in which the working class would overthrow the capitalist class and seize control of the economy. BASICS OF MARXISM

3. Marxism is both a social and political theory. Marxism was first publicly formulated in the 1848 pamphlet, The Communist Manifesto, by Karl Marx and Friedrich Engels, which lays out the theory of class struggle and revolution.

4. The society is in a state of perpetual conflict because of competition for limited resources . According to conflict theory, those with wealth and power try to hold on to it by any means possible, chiefly by suppressing the poor and powerless . Marxist conflict theory sees society as divided along lines of economy . Given conflict theorists' assumption that conflict occurs between social classes, one outcome of this conflict is a revolutionary event between the working class and the ruling class. CONFLICT THEORY

5. The labor theory of value is a major pillar of traditional Marxian economics, which is evident in Marx's masterpiece, Capital (1867 ). The theory's basic claim is simple:the value of a commodity can be objectively measured by the average number of labor hours required to produce that commodity. THE LABOR THEORY OF VALUE

6. The most important conclusion of Marx's theory of capitalism is that the rate of profit would tend to decline over time as a result of technological change. Marx called his law of the tendency of the rate of profit to fall “in every respect the most important law of modern political economy ”.   THE FALLING RATE OF PROFIT