Marxian Economics
Candlefocus EditorMarxian economics is related to other economic theories, like classical and Keynesian economics. Similar to classical economics, Marx argued that demand and supply are the primary determinants of price. He agreed with David Ricardo, who theorized that labor is an important factor of production, with some factors (such as land) being more or less fixed, while labor has the potential to be increased or decreased.
Similar to Keynesian economics, Marx understood the interrelationships between the different sectors of the economy and highlighted the problems of aggregate demand and the business cycle. He rejected the boom-and-bust cycles reflected in capitalist economies and advocated for the restructuring of production processes in order to eliminate the underlying causes of cyclical recessions.
Despite its similarities to other economic theories, Marxian economics is largely focused on the ways in which class conflict, wage labor, and capital relate to Marxist philosophy. Marx saw labor as being necessary for production, but he also argued that workers are paid too little for the amount of work they are forced to do. He argued that capitalism ultimately creates economic inequality, with its need for a large reserve of workers and surplus labor.
In short, Marxian economics is a theory that places class struggle at the center of economic analysis and suggests that exploitation will continue until the labor force takes control over its own products. While many Marxian theories are controversial, they provide an important foundation for modern understanding of the labor movement, labor economics, and the unequal distribution of resources around the world.