Introduction
Marxist critiques of capitalism challenge each other in many aspects. However, the three critiques are interrelated.
Theory of surplus value
This theory states that surplus value is a factor of surplus production. This theory also encompasses labor. Thus, capitalism exploits the common work force. The surplus production is constantly being created. In fact, workers are willing to put extra effort in performing their daily tasks.
This benefits the owner and stakeholders of the organization. In this process, a modern slavery regime is continuously created.
The comparison of the two brings out the idea of work being done at no cost. This results in extra products that create the surplus value. This is a sign of extra revenue to the owner.
This theory contradicts the common ideology of fair exchange between the capitalists and the work force. This ideology encompasses fairness and justice in conducting business.
This is against the ideology that people will receive wages according to their level performance. This theory offers the best definition of profit.
Theory of value
This theory states that price is a dependent variable and value is an independent variable. The theory also considers price as the best aspect that can be used to value a commodity.
This theory’s principle is based on the theory of supply and demand. It creates an atmosphere that will clearly mimic a pure capitalistic situation.
To demonstrate this theory, it is essential to use figures to quantify the actual change created by the situation. A perfect example of this is the assumption that a working day has six hours. Further, there is an assumption of the value of production that a worker will create by the end of the day.
This will encompass all the activities that are done in one day. In this case, $ 1000.00 will be the value of the production. If the working hours are inflated from 6 hours to 12 hours, the value of production doubles to $ 2000.00.
In this example, surplus labor produces twice as much as the initial production value. This situation creates a new equation that relates the working hours to the new value of price.
N = M * L
Therefore, N is the new value of price. M is the new product production of a worker in one hour and L is the labor hours for one worker in one day.
Commodity fetishism
This theory states that human beings embrace the trends in the market. For instance, they seek to buy or receive wages that prevail in the market. Here, the market creates the relationship between value and price of a good or service.
This is the price of labor and basic goods for human advancement. This behavior turns the people into commodities and governs the way human beings relate to one another in the society. An individual’s self-value is what he or she is worth.
This can also be the amount of monetary compensation payable to the individual for his or her strength or expertise. Thus, job seekers or house buyers tend to rely on the current market situation as the basis for market prices for houses or wages.
Conclusion
This situation makes the people victims of the market and not its benefactors. They have no control over the prices in the environment. Prices are determined by the situation that is created by the forces of the economy.