Marxist economics

Marxist economics

Marxist economics is the study of the laws of motion of capitalist society. Why does capitalism perpetually go into crisis? Why does mass unemployment exist? Are commodity production, the domination of the market, and rich and poor natural, immutable states of being for humanity? Or are they merely the products of this specific mode of production - capitalism? If so, is there any way capitalism can exist without these problems, or by minimising them?

Marxist economics is a “holistic” way of analysing capitalist economy. It starts out by placing it in its real historical context (rather than dreaming up abstract idealisations of capitalism to justify it, as bourgeois economics does), studying all its interconnections and contradictions, rather than artificially isolating one aspect of it. In doing so, Marxist economics lays bare the functioning of capitalism; the exploitation and injustice inherent within it. Those who want to get to the essence of why, in the 21st Century, despite having a more advanced understanding of the world than ever before, humanity seems plunged into perpetual crisis it cannot get to grips with, should look no further than Marxist economics, beginning with the writings of Marx himself.

At the time of the struggle against pit closures in Britain in 1992/93 the old argument in favour of import controls to save British Coal was raised. Phil Mitchinson explains why this is not an "alternative" that socialists would put forward.

In 1971, the economy was growing sluggishly and was rife with inflationary problems. Ted Grant disproves the bourgeois myth that an increase in the wages of the working class causes price increases and examines the real causes of inflation.

Ted Grant's perspective that the seemingly endless boom of the post 2nd World War period would actually end and 'be followed by a catastrophic downswing, which cannot but have a profound effect on the political thinking of the enormously strengthened ranks of the labour movement' must have seen like madness to some at the time. However, as we have seen, the Marxist analysis has been proven to be more than correct in predicting the continuing crisis of capitalism over the last few decades. This text remains even today an excellent riposte to all those who thought that capitalism could by magic avoid crisis and enter a period of non-stop plenty.

In 1958 there were fears of a slump spreading from the US economy. British CP leader Campbell started a campaign in consonance with Russian foreign policy to put the blame for the slump on the "Americans" and protested against the bankers' behaviour and the shortsighted British government's attempt to "create a slump" in the UK. Ted Grant argued against this nonsense that it is not the "obsessions" of the bankers nor the "stupidity" of the capitalists and their representatives which cause them to act in a certain way, but the economic laws of the capitalist system.

Cutting through the superficiality of the Fabian theories, Ted Grant defends the basic Marxist position, that as long as the market dominated the economy, then there would inevitably be cycles of boom and slump. Explaining the causes for the longevity of the boom, he also points out its limitation and the inevitability, at a later stage, of new recessions and slumps. This article, although directed particularly towards the British economy, was no less relevant to the other main capitalist countries, where similar conditions prevailed and similar arguments raged.

Lenin's masterpiece Imperialism is an immortal monument to his work in the vital field of theory. No book has ever explained the phenomenon of modern capitalism better. Indeed, all of Lenin’s predictions concerning the concentration of capital, the dominance of the banks and finance capital, the growing antagonism between nation states and the inevitability of war arising out of the contradictions of imperialism have been shown to be true by the entire history of the last 100 years.

A classic of Marxism, Anti-Dühring was highly recommended by Lenin as a ‘text book’ of scientific socialism. It was originally written as a polemic against Eugen Dühring, a German revisionist who challenged the basic ideas of Marxism by counterposing his own ‘scientific’ theories within the Social Democratic Party of Germany. Very reluctantly, Engels was forced to take up these ideas and in doing so explained in the clearest fashion the revolutionary theories of Marxism.

Value, Price and Profit was produced at a time when the labour theory of value had already matured in Marx’s brain. It was first delivered as a speech delivered by Marx to the International Working Men's Association (The First International) in June 1865, while he was working on the first volume of Capital that was published two years later.

The Preface of the Critique contains the first connected account of one of Marx's main theories: the materialist conception of history. The participants in history may not always be aware of what motives drive them, seeking instead to rationalise them in one way or another, but those motives exist and have a basis in the real world.

Wage Labour and Capital is based on lectures delivered by Marx at the German Workingmen’s Club of Brussels in 1847, that is, before the Communist Manifesto and at a time when Marx had not yet fully developed his theories of political economy. Although it is an early work, Wage Labour and Capital contains the outline of the Labour Theory of Value and many important insights into the workings of the capitalist system and the way in which workers are exploited.

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