Did the classical theorists fully comprehend the significance of capitalism.Although the term capitalism was not widely used until the latter part of the nineteenth century

Authors Avatar

Did the classical theorists fully comprehend the significance of capitalism.

Although the term capitalism was not widely used until the latter part of the nineteenth century (Bottomore, 1988) to date it may be considered as one of the most influential factors in the development of society. Infact, no single phenomenon is as significant to the classical sociological theory as capitalism. Capitalism is the end product of the industrial revolution; it created both new ideas and a new social order, in other words it enquired into the nature of society, the existence of our social world. In this new social order individuals are free to own means of production and maximize profits that is determined by a price system. It is unequivocally clear that capitalism is significant to the classical theorists, as it forms a central concept within their sociological paradigm.

According to Randall Collins, capitalism is present wherever the industrial provision for the needs of humans is carried out by enterprise, irrespective of what that need involves. That is, a rational capitalistic establishment, which determines its income yielding power by calculation according to the methods of modern book keeping and the striking of balance. Such accounting involves again, the first appropriation of all physical means of production; land, machinery, tools, and so on, as disposable property of autonomous private industrial enterprises.

Bottomore and Giddens among others saw capitalism as comprising a set characteristic. Simply stated they include: private ownership of the means of production, free market, profit, self-interest, economic growth and self-organization. One unifying characteristic of capitalism as regards by the founding fathers such as Marx, Durkheim, Weber and Spence, is the extent to which capitalism is seen as a superior form of society to pre-existing ones. All classical theorists agree that capitalism presents an improvement over the entire set of relations that existed in Western Europe. It is true that these Theorists assumed progress in societies to be teleological, which means that, they are moving in a particular direction, (unidirectional or unilinear) and in other words they have purposes or goals. In order to achieve these goals, society causes or creates specific social structures and institutions.

One of the widely debated and held views of society comes from sociologist Karl Marx. Throughout his life, Marx wrestled with the question, in a society so rich, how could so many be poor? Needless to say he also asked, how can the situation be changed? He was motivated by compassion for humanity, and sought to help so that a new and just social order could exist. (Macionis, 1998). Marx’s concepts involved the idea of social conflict and struggle between segments of society over valued resources. For Marx however, the most significant form of social conflict involved clashes between social classes that arose from the way a society produces material goods.

Marx’s theory of capitalism clearly went beyond an economic based analysis and beyond that of a  ‘political economy’ (Bottomore, 1988). It was, in fact it was more of a broad socio-historical theory, which treated capitalism as a total society; involved in a distinctive process of development. Similarly the major alternative theories have dealt with capitalism as a distinct form of society in which there are interrelations and interactions between the economy, political and other social institutions, and the culture sphere, (Bottomore, 1988).

Marx fused the works of Hegel’s dialectic and Feuerbach’s materialism, into his own distinct orientation and dialectical relation within the material world. Marx’s materialism and his consequent focus on the economic sector led him to the work of political economists such as Adam Smith. He lauded Smith’s basic premise that labour was the source of all wealth. This ultimately led Marx to his labour theory of value, in which he argued; the profit of the of the capitalist was based on the exploitation of the labourer  (Ritzer, 1992).

Marx’s drew on a number of major assumptions, concepts and theories to give an account of how he viewed and analyzed nineteenth century capitalist society. He made numerous          

deliberations about surplus value, which is essentially responsible for the exploitative nature of class-ridden societies (Ritzer, 1992). Marx’s dichotomous model supplies the necessary foundation of the theory of class society; ownership as opposed to non-ownership of the means of production is the fundamental axis along which ‘infrastructure’ is related to ‘superstructure’. However this theory of class society is obviously dependent on the manner in which Marx’s associates his dichotomous model to the conception of ‘exploitation’ (Giddens, 1973).

Exploitation of the labourer by the manufacturer is but one kind; other also exploits him (e.g. Landlords, Shopkeepers). His diminutive capital does not suffice for the scale on which modern industry is maintained. And his specialized skills are constantly rendered worthless by new methods of production. According to Marx’s ‘class’ ultimately results from inter-relationships among individual relationships to the factors of production; thus beyond economic wealth. He sees the existence of two distinct classes, the bourgeoisies and the proletariats.  

 Marx’s elaboration on the concept of surplus value was associated with his prediction making, as he tried to relate it to his associated theory that there was a tendency for the general rate of wages to fall to subsistence level. Consequently antagonism and conflict would result, thus the Communist Manifesto was drawn up. This manifesto to a great extent reflects the history of the modern working class movement; presently it is undoubtedly the most widespread, most international production of all socialist literature. (Giddens, 1973).

Feudalism, like capitalism, is built upon a dichotomous class relation, centering upon property ownership. According to both Marx and Giddens this class structure differs in basic aspects from that created by the advent of the capitalist market. He goes on to say that the spread of capitalism inevitably destroys both feudal bonds and fealty and the relatively ‘self contained’ character of the local community  (Giddens, 1973). Despite all this, Marx’s preoccupation or rather one of the many, was to discover the principles of change for society.

Join now!

 He was not merely interested in describing the stratification system to show how many strata’s there were in society, who had high or low privilege or the kinds of privilege enjoyed. Thus, he never produced a theory of stratification. Instead, he examined society for key groups, which either appeared to have a strong interest in maintaining the existing social system or a strong interest in trying to change it (Giddens 1973).

This leads to a separation of the ‘economic’ and the ‘political’ class relationships, governed by the contractual ties entered into by capital and wage-labour on the open market. Thereby ...

This is a preview of the whole essay