A Brief History of Economics Essay

Through his use of dialectical materialism, Marx non only when changed the history of stinting fancy, merely effect great illumination for himself regarding the bonds of human society. The concept that seems relatively simple in todays abstruse economic valet was utterly revolutionary in the prison term of Marx spate develop their ideas about the world (and thereby, their ideas for how society should be organized and stratified) based on the material aspects of their lives.It was an elegant extension of basic bolshie theory chapiterism, according to Marx, is interested in offering naked materialism as a signifier of booby prize to make up for the intend of production being taken away from the concourse. If the people can no longer work for themselves and no longer work at perfecting their own craftsmanship as individuals, then, as Marx correctly deduced, people would require something to validate their work.This became the center of enceinteism, as Marx understood it materialism exists as a kind of justification for capitalism, and since materialism has permeated our culture to such an extreme degree, eventually neighborly orders began to revolve around it. Hence, what capitalism serves as the cause of what Marx saw as nothing less than on-going class warfare. It is elicit to observe that Marx believed a violent revolution on the part of the proletariat was not simply a possible order of changing things, unless actually served as the only method of changing things.This is because materialism was so embedded into class structures (which, in turn, was so embedded in fountain structures), and the only way for society to functionally survive was for it to become overturned completely. It is also interesting to note the ongoing effect that Marx has had on philosophic thought materialism had previously been dislodged by Descartes and the famous resolution I think, therefore I am as far as virtually people who pondered these things could concl ude, thought preceded matter.However, Marx not only brought materialism to the philosophic forefrontthe then-controversial idea that material preceded thoughtsolely illustrated the archetype that the abstractions of materialism had been concretized by capitalism into purchasable goods. 2 Marx and the Secret Source of Profit by chance the most enduring notion of Marxs is the so-called secret of the source of clear under a capitalist societythough such is Marxs legacy of intellectual thought, a great some people simply accept this notion as reality the source of profit is the surplus note value that an employer gains from laborers. later on all, the means of production have been taken from the people skilled artisan cobblers have been replaced by pulverization line workers churning out shoe after shoe after shoe. The money saved by employing this assembly-line method of industrial production becomes pure profit for the employer. Interestingly, Marx tethered this to his own theo ries on circulating capitalthat is, something that does not last, and is used up in the production of other goods and services, in direct opposition to frozen capital, which is traditionally held for over a year by a business or innovation.Marx astutely deduced that the government note between these concepts is not only relative, but arbitrary the idea that capital held for 365 days is circulating and that capital held for 366 days is fixed is absurd. However, it allows the proletariat to essentially gloss over their own necessity to the entire institution of capitalism they are led to believe that society is held up by the fixed capital of major investors and their long-term investments.In reality, society is held aloft by the ongoing purchases of the common man (and woman) their disposable income is burned-over off to provide them a sense that capitalism is worth itit turn, their disposable income is used to make the loaded richer, as the cliche goes, all the way up the capi talist pyramid. In Marxs view, this is one of many ways that those in great power forestall the seemingly unavoidable class war that he advocates those with powerthe purchasing power of the common manare convinced they have none, and are bought off with trinkets.It is interesting to note that this echoes the master/slave morality inversion of Nietzsche. 3 Marginalists and the Economy In the evolution of economic theory, the impact of marginalism cannot be overstated. Once one had accepted the blunt realities of Marxspecifically, that society was organized based on the perceived value of itemsthe logical question remained how does one quantify the value of an item?Marginalism illustrated the diminishing returns on the marginal utility of resold products, which dramatically impacted abbreviation of capitalist providence, the focus of economic analysis, and theories of value and distribution. Regarding the analysis of capitalist economy, marginalism helped solidify the supply and e ngage notion of economics as that of mainstream economic thought, as inappropriate to the labor theory of value espoused by Karl Marx.To put it mildly, this has had ongoing economic cause for the last atomic number 6 and a half. The focus of economic analysis shifted accordingly, as marginalism interacted with price theory this allowed economics to project demand curves utilizing marginal rates of substitution as a means of find not only when, but why a seller is willing to relinquish a product for a particular price. Perhaps one of the most lasting effects of marginalism on economic thought has been its effect on theories of value and distribution.With the previous measures in place, economists (as well as common people) now had a more-or-less accurate measure of determining the value of any given product in any given social context. Of course, this also effects the ongoing distribution of certain products to certain demographics in order to maximize profitability. Interestingl y, this is one of the chief criticisms of marginalism as well that it is a vague pseudoscience whose intent is to maintain not only the economic situation quo, but the appearance of the status quo.It is no surprise, then, that Marxists continue to grapple with marginalist theory they see it as a means of keeping the proletariat in check, and preventing any uprisings from them. 4 Thorstein Veblen Survival of the Fattest Thorstein Veblen, for better or worse, specialized in bringing the human element into economic theory. Specifically, he theorized that the institution of the leisure class was a poriferan feeding upon America upon the backs of workers who are actually productive are a class who seek only profit and produce nothing but nullify.He essentially created and popularized the notion of conspicuous consumption as the epitome of this theory that wealthy individuals spend large amounts of money on ostentatious goods whose sole advance is to publicly display their wealth to t he world. Unfortunately, this has become an integral part of the economy although an engineer might holler at the man spending over a hundred thousand dollars for a car, the American economy would be crippled if conspicuous consumption vanished overnight.Hence, the parasite metaphor conspicuous consumption and naked profit helps the wealthy to bloat themselves on the backs of the poor until the entire enterprise inevitably crumbles under its own weight. Veblen perceived quite clearly that human notions about the world are social constructs created by individuals, and as time went on, those notions would change, necessitating a change in economic thought as well. He makes frequent comparisons to evolution to get on this end idle curiosity spurs innovation, innovation spurs conflict between the old guard and the innovators, and an economic Darwinism is born.The approaching of industry and technological revolutions merely expanded his original point the parasitic relationship contin ued unabated, as the innovations of the productive engineer class were inevitably utilized as means of conspicuous consumption and waste on the part of the leisure class. Planes are developed as a result of idle curiosity, for instance, but it is the leisure class that necessitates the invention of first class as a way of displaying their own status in the social hierarchy.