Compare and Contrast the Contributions of Karl Marx and Max Weber on the Development of Industrial Capitalism.

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Foundations of Social Science                   Andrew Baker

Foundations of Social Science (N11128)                                                        Andrew Baker

Compare and Contrast the Contributions of Karl Marx and Max Weber on the Development of Industrial Capitalism

        It is widely accepted that most of the developed countries in the world today are ‘capitalist’ economies. Capitalism in economic terms is a free market system, involving little government intervention (a laissez-faire approach). Capitalism involves investment in the means of production (capital) with the aim of creating profits. “ The essence of capitalist exchange is to proceed from money to money by way of commodity and end up with more money than one had outset.” (Aron as quoted in Haralambos and Holborn,1995, p34). In a capitalist society, the means of production, i.e. land and capital (tools, materials), are privately owned by one social group. The third factor of production, labour, is provided by another social group. The nature of the relationship between the two classes is the essence of the sociological study of capitalism.

        In our minds, capitalism is inextricably linked with mechanized mass production and huge corporations. Capitalism is in many people’s eyes embodied by modern corporations such as ‘McDonalds’.

        However, “Capitalist production existed before the Industrial Revolution. In sixteenth-and seventeenth-century Europe production in households and workshops was increasingly financed and controlled by the owners of capital.” (Fulcher and Scott,1999, p502). This essay is about ‘Industrial Capitalism’, which is the combination of the capitalism that I have discussed with organized, mechanized systems of production. “Capitalism and Industrialism have been closely related because it was the capitalist’s pursuit of more profitable ways of organizing production that drove industrialism forwards.” (Fulcher and Scott, 1999,  p503).

        Hence, industrial capitalism can be defined as large scale or complex machinery being applied to the pursuit of economic efficiency on a basis whereby the capacity for work of some groups is sold to others who control and organize employment in such a way that they maintain an advantage over those resources. (Soulsby, 2001, unpublished)

        I will start by considering the thoughts and theories of Karl Marx, the famous German born sociologist and revolutionary.

        I think it is necessary to firstly point out that Marx was not against industrialization, but was opposed to the theory of capitalism and its effect on humanity. He recognized the potential benefits of industrialization, namely that improved technology increases the potential for creativity and diversity of work.

The central focus of Marx’s work on capitalism was the idea of ‘social conflict’. Inequality, was, in Marx’s eyes the evil of society and capitalism was only ever going to increase this evil, by increasing the gap between different social classes. Marx referred to the capitalists who owned the resources necessary to create profit as the ‘borgeoisie’, and  to the majority of the population, who provided the labour necessary to operate factories as the ‘proletariat’.

         The relationship between these classes is based on Marx’s theory of ‘materialism’. This is the belief that the very essence of human existence and the key to self-actualisation is work. Therefore, the way in which a human views work has a strong bearing on their life, and on their happiness. Marx believed that work “provides the most basic means to freedom, to liberation from necessity.” (Cuff et al, 1998, p16). This theory differs from ‘traditional’ theories such as those of Hegel that cited ‘thinking’ as the essence of humanity. Marx accepted that ‘thinking’ is a part of labour but saw ‘speculative thinking’ as unprofitable and self-deluding. This ties in with Marx’s thoughts about religion. He saw religion as a ‘weakness’ and people who believe in supra-individual forces, such as God, as relinquishing control of their destiny. He, in fact, saw religion as a product of society, not an influence upon it. “Religion is a manifestation of social defects within a democratic state.” (Lewis, 1965, p57).

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        Marx’s belief that labour is the key to self-fulfillment makes the theory of ‘division of labour’ a key one when studying his theories. Division of labour, is a technique essential to capitalism and industrialization, it, in theory, improves the efficiency of a firm by making its employees more skilled at their particular task and therefore quicker and more proficient. Marx recognized the potential benefits, but saw problems too. “An enormously powerful device for harnessing and maximizing the creative potential of human labour: by dividing work immensely more can be produced than if all the members of a group pursue the ...

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