What does everyone here think of Marxism? Doesn't Karl Marx make a good point about capitalists and the workers?
I.e. the capitalist does nothing but sit around and give the workers only a portion of the value that they produce?
The price of factors of production are determined via supply and demand. Thinking that workers receive a share of their factorites profits is like thinking that the iron that goes into the car receives a share of the cars selling price.
For more, check out Böhm-Bawerk's Marginal pairs: http://mises.org/daily/5903/
After learning what they are, see them applied to labor economics: http://mises.org/daily/5934/The-Irrelevance-of-Worker-Need-and-Employer-Greed-in-Determining-Wages
Finally, some stuff I just found that might be of interest as well:
http://mises.org/daily/1680
http://www.youtube.com/watch?v=uOzotWrHheU
By "value" I mean how much money a certain item will bring. An example would be if I was hired by Willy Wonka to make chocolate, I create the "value" (the chocolate) through my labor, yet he only gives me a portion of the money that results from him selling the chocolate on the market.
That's a common misconception of the origin of value. Your labor did not create the value; the buyers' desire did. That is, your labor created chocolate. The buyers' desire for chocolate made that chocolate valuable. In your example, then, Mr. Wonka paid you an amount based on his desire to own the chocolate you produced and your unwillingness to produce the chocolate without compensation. He purchased the output of your labor with a fee agreed upon by both of you. After the transaction, why is it any of your business what he does with it, either eating it himself, or selling it to someone else?
faber est suae quisque fortunae
Is this a joke?
Why?
What difference does it make? Can you answer the question please?
Maybe watch this....
[[Quote="John James"]]What difference does it make? Can you answer the question please?[[/Quote]]
Yes, no.
i.e. the capitalist does nothing but sit around and give the workers only a portion of the value that they produce?
Explain what you mean by "value". That word is pretty important in all discussions of Marxian economic theory.
Are you asking whether or not value comes from labor?
Williamloveseconomics:
I've watched that before (though I just did again), how exactly does this video refute the exploitation theory?
It's a good case against minimum wage laws, ect. but I don't see how it is an answer to Marxism?
Explain what you mean by "value". That word is pretty important in all discussions of Marxian economic theory. Are you asking whether or not value comes from labor?
The only way he can make profit off me is if he witholds from me the value that I produce.
Why work for him, in that case? Work by yourself.
Buzz Killington:By "value" I mean how much money a certain item will bring.
If the employer is only giving you a portion of the money that your labor will bring, then why are you working for him and not for someone who will give you the "full amount" of the money your labor will bring? In other words, why are you not already working for the highest paying employer of your skill?
Exploitation theory was refuted by marginal utility.
http://mises.org/Community/forums/p/23371/405734.aspx#405734
I decided to make this post into a bunch of three point responses... Why? For the lolz.
"What does everyone here think of Marxism?"
Anyway if I had to think of three concise points which destroyed Marx's philosophy:
"Doesn't Karl Marx make a good point about capitalists and the workers?"
Three points that show this is, usually, not so.
If you're really interested in the subject of Marxism, especially a criticism of it then I'd recommend any of the following (these are all world class works by the way):
The section on Marxism in "Theory and History" by Mises. You can get it on PDF from this site
The section on Marxism in "Capitalism, Socialism, and Democracy" by Schumpeter. You can find a PDF of this online
Any section from "Karl Marx and the Close of His System" by Eugen Bohm Bawerk
If you're looking for nothing more than a description of all the general points of Marxism then any decent economic history can help you out there.
Because I'd still be given only a portion of the money coming from the product that I produce. If I was given the full amount of money made from selling the chocolate the capitalist would have nothing (since he produces nothing).