Crisis and conflict are inevitable in capitalist economies.

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PECO1000 Student no. Z3220293

Marx debate. Week 6 Najah Ayoub

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Crisis and conflict are inevitable in capitalist economies.

'Marx believed that capitalism was doomed, and he developed an intricate analysis of the ' law of motion' of capitalist society to prove it' (Fusfeld 2002, p 50). At one level his argument had a moral basis. He argued that the 'inherent injustices of capitalism lead ultimately to social and economic conditions, which cannot be maintained' (Fusfeld 2002, p 50). On another level his argument is sociological: 'class conflict- between a decreasing number of increasingly wealthy capitalists and a growing and increasingly miserable working class- will lead ultimately to a social revolution' (Fusfeld 2002, p 50). To conclude his Final argument is economic, that 'the accumulation of capital in private hands makes possible economic abundance; yet accumulation also leads to depressions, chronic unemployment and the economic breakdown of capitalism' (Fusfeld 2002, p 50). At each level the idea of 'conflict is emphasized: conflict between ideal reality, between capital and labor, and between stagnation' (Fusfeld 2002, p 50). Out of conflict comes change, and in this respect according to Marx, capitalism must give way to another society in which conflict is replaced by ethical, social, and economic harmony. Furthermore, Marx argued that the crisis would become deeper and severe longer as capitalism developed.

Student no. Z3220293

However Marx's analysis of conflict within capitalist societies was limited by his theory of the 'laws of motion'. He argued that conflict between classes created by an unequal distribution of wealth, and would ultimately lead to an unsustainable social situation prompting the demise of the world capitalist system. Thus, he perceived class conflict as the fatal flaw of capitalism. However his detractors would argue that conflict of some form exists in all human interactions and thus has existed in all political and economic systems, concluding that capitalism addresses this inherently human conflict in order to avoid crisis.
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In a capitalist society according to Marx, the two great economic interests are those of a capitalist and worker. These two classes stand opposition to each other, since the capitalist can prosper only if the worker is exploited. In this respect capitalism is only the latest in series of social organizations in which one class exists at the expense of another, stated in the communist manifesto. Marxists would further argue that peoples dominated politically or economically by great capitalist nations now bear the burden of exploitation, poverty and unemployment

However as a proof of Marx's errors, his ...

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