Marx's Analysis

“Marx’s analysis of the emergence of capitalist relations and the transformation of the labour process under capitalism shows that firms are internally related to and co-evolve with capitalist markets”. Discuss.

Karl Marx is a popular economist and a philosopher whose work many years ago can be said to have formed the basis that established a better understanding of how labor is a factor of production and how it is connected to capital. As a result, the various models and concepts that were advanced by Karl Mark become known as Marxism with the main view of the Marxism concept been that conflict in the society entails the class that is in charge of production, owns everything and the class that provides the labor that is used in the productivity. This paper focuses on the subject of Marxism as it discusses the emergence of capital relations and as well as the changes of the labor process under the capitalism while at the same time showing that the firms are internally related to each other and co-evolve with the capitalist markets.

Since the paper focuses on the subject of Marxism, there is a need that the term Marxism is defined prior to proceeding ahead to discuss the emergence of capital relations and changes in labor process under capitalism. Becker (1984), Callinicos (2010), and Jonathan (2013) have discussed Marxism as an approach of socioeconomic analysis that emanated in the mid to late 19th Century works of Karl Marx and Friedrich Engels who were German philosophers. According to the scholars, Marxist approach initially applied economic and sociopolitical review to examine and assess the advancement of capitalism as well as the role that class played in struggle of systemic economic change. According to Marxist view, class conflict within capitalism emanates from the increasing inconsistencies among the highly productive mechanized and socialized production carried out by the public, and private ownership and misappropriation of the surplus product in the form of surplus by a small minority of private owners called the bourgeoisie.

Production in the perspective of capitalism as noted by Meikle (1996) entails production been carried out on private basis. Indeed, Karl Marx explained that the capitalists are the ones undertake the production of goods and services in the exchange market. Nevertheless, the fact that the capitalists are after making maximum profits implies that they have to always ensure that they incur the lowest costs of labor during the production of different goods and services. As a matter of fact, if the capitalists realize that they cannot be able to benefit and make profits from the production to the high production costs involved, the capitalists are more likely to abandon the productivity and focus on production of other products and services that has high potential of been profitable to them (Milios, Dimoulis and Economakis, 2002). On the other hand, governments that are not