Wednesday, 6 May 2015

STAGE 1880: KARL MARX (Industrial Relation)


STAGE 1880: KARL MARX - WORKER ARE EXPLOITED GROUP
          Karl Marx (5 May 1818 – 14 March 1883) was a philosopher, political and social theorists Prussia. Although Marx addressed numerous issues throughout his career as a reporter and philosopher, he is best known for his analysis of history in terms of class conflict, summarized in his claim that, ‘The Importance of capitalist and employees against each other’. His writing formed the basis for the movement of communist and socialist.
          Marx’s theories about society, economics and politics. It’s collectively known as Marxism. Marx’s hold that human societies progress through class struggle. Class struggle a conflict between an ownership class that controls production and a dispossessed labouring class that provides the labour for production. He called capitalism the “dictatorship of the bourgeoisie’ believing it to be run by the wealthy classes for their own benefits, and he predicted that, like previous socioeconomic systems, capitalism produced internal tensions which would lead to its self-destruction and replacement by a new system which socialism.           He argue that class antagonism under capitalism between the bourgeoisie and proletariat would eventuate in the working class’ conquest of political power in the form of a dictatorship of the proletariat and eventually establish a classless society, socialism or communism, a society governed by a free association of producers.
          Karl Marx socialists theory, worker are exploited group. The exploitation theory is the theory, most associated with Marxists, that profit is the result of the exploitation of wage earners by their employers. It rest on the labour theory of value which claims that value is intrinsic in a product according to the amount of labour that has been spent on producing the product. Thus the value of a product is created by the workers who made that product and reflected in its finished price. The income from this finished price is then divided between labour (wages), capital (profit), and expenses on raw materials. The wages receive by workers do not reflect the full value of their work, because some of that value is taken by the employer in the form of profit. Therefore, ‘making a profit’ essentially means taking away from the workers some of the value that results from their labour. This is what is known as capitalist exploitation.
          The theory has been opposed by, among others Eugen von Bohm-Bawerk. In History and Critique of Interest Theories (1884). He argues that capitalist do not exploit their workers. They actually help employees by providing them with an income well in advance of the revenue from the goods they produced, stating ‘Labour cannot increase its share at the expense of capital’. In particularly. He argues that the theory of exploitation ignores the dimension of the time in production. From this criticism it follows that, according to Bohm-Bawerk, the whole value of the product is not produced by the worker, but that labour can only be paid at the present value of any foreseeable output.
          An understanding of the basics of Marx’s theory of the exploitation helps to explain the different forms of struggles between workers and capitalists. One of the earliest such struggles was over the length of the working day, which Marx discusses at length in the first volume of capital. So long as everything else remains the same, capitalist can increase the amount of ‘surplus labour’ over and above that needed to produce the value of wages by extending the length of the working day. This increases the rate of exploitation, as worker spend a greater portion of the working day performing unpaid labour for the capitalist.
          In the 1880s in the U.S workers, led by anarchists and socialist, waged heroic struggles to limit the working day to eight hours. These workers were struggling to decrease the rate of exploitation. By fighting for a shorter working day, they were fighting for a shorter working day, they were fighting to decrease the amount of unpaid labour they were forces to perform for the capitalists. Similarly, struggles over wages and benefits are struggles over the value and price of labour power, which is an expression of workers’ standard of living. Capitalists seeks to lower wages and slash benefits, decreasing the price of labour-power in order to increase the accumulation of surplus value, to maximize their profits.
          Most importantly, Marx’s theory of exploitation reveals that because the source of capitalists’ wealth is the unpaid labour of workers, the interest of workers and capitalist like slave and master or serf and lord before them are diametrically opposed and are impossible to reconcile. The two will always come into conflict since capitalists can only increase their share of the wealth at the expense of workers, and vice versa. Workers have to struggle to decrease the severity of the exploitation they face under capitalism. But as long as the capitalist system exists, workers will be exploited, and their unpaid labour will remain the sources of the profits that are the lifeblood of the system.
          Therefore, Marx concluded that the only way for workers to control the wealth they create and use it to meet their needs was under a different system altogether. As he wrote in Value, Price and Profit. According to Marx, only when workers control the means of production for their own benefit can exploitation be abolished only then will the expropriators expropriated. 

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