Marxian Political Economy : A Critical Note on Marx’s Theory of Profits
Karl Marx’s method of political economy offers a critique of the political economy of capitalism in relation to its historical, social and material foundations, and this contributes to understanding and explaining the nature and functioning of capitalism, as well as the root causes of social and economic inequalities in the society.
It’s common to everyone on what Profit is, whether in it’s English term or according to a language enunciated by any social settings which virtually everyone known as “a net income over capital”. But this connotation give the impression to be more on economic activities that befell between two or more parties, where the parties bargain and well along made a desirable profit. In contrast, regarding Marxism conception of profit, the above meaning contradict what Profit is in the notion of the Marxian political economy.
By way of in the capitalist economy, that profit portrayed the money accrued above the capital put in a business for instance if Mr. A bought a house at the price of 1 Crore including all the expenses incurred during the transaction and sold it 15 Crore to Mr. B. He or she made a solid and legal profit of 5 Crore. So, this is what profit positions to the capitalist.
Then, profit maximization under the Marxian perspective is not about money making, but the desirable needs provided to the populace, for instance equal opportunity for everyone willy-nilly of his or her social class. Others include what the people need not what you as personages need or want, provision of infrastructural facilities, service for humanity not for self alone but for every, giving others opportunity for economic expansion among the rest. Gratifying the above mentions including basic and necessary needs of the populace then we can say the real definition of profit maximization is depicted in respect to Marxian conception of our time.
Seemly, the reason why today we find ourselves in a chaotic society, is because we strictly adhere and stand still with the capitalist ideology as been conceived that making more profit is the best way to earn a successful and better living, not knowing that it’s the easiest way to the capitalist to gain low-cost materials and huge capitals in sustaining their industries, likely for exploitating and extorting the energy of the working class (proletariat).
Assuming we conceived profit in it real term as provision for the general well being of each and every individual, doing things in common, government achievement and charity for the less privilege ones, the world would have been a better place for us to live.
Besides, capitalism tired out away future occurrences to those with little capital or no capital to gain access in order to become market competitors in future time. It’s doesn’t make sense whereby someone establish school, employ teachers and to be making huge amount of money and call it profit why the teachers whose task reside almost everything that hold the school is getting a lesser amount or peanut. So also, this incidence is synonyms to most of our industries and even some public organization.
This is obvious in our present societies where someone with capital will establish school and hire teachers to teach in the school and he or she will be paying them peanut because his or her is on the dogmas that been the provider of the building and other school equipment he or she owns the school, not knowing that, him alone doesn’t have the talent to teach all the subjects, thereby, is a collective effort between him or her and the employed staffs to withstand the progress of the school.
In this aspect, if justice is to be put in place the money that will be pay as school fees by each and every student which is the profit of the school has to be share equal between the owner of the school and the teachers. Because the owner of the school can only establish the school but cannot teach all the subjects and without the effort of the school teachers, the school cannot achieve its targeted goals of providing good education. Provision of good and qualitative education is the profit motive not the money gain above the coast of running the school.
Thus, as a result of fallacy of equal sharing of profit which Marxism stand for are the reasons why today you found a school teachers that thought for a very long time were still battling with how to disentangle there necessities such as food, shelter, house rent among other basic needs. Not only private school teachers but also those that thought in public schools and even some factory workers of but private and public entities.
If equitable distribution of profit is designed, whereby profit is share equal between the owner of the means of production and the proletariat, the working class may have opportunity to establish their own school or start another business and leave opportunity for others that are coming up to take over and vice versa.
Most if not all of our industries and government parastatals also have the same view with the private schools where a worker will work overtime and be given little, why the remaining amount is pocket in the name of profit. This is the reason why in the public sector we have budget surplus which stand for profit in it real term like how profit is to the private compradors.
To end with, the world would have been in peace, if profit is conceive as providing opportunities for others at suitable disposal, be it by government or private individual, not on the contrary as it’s in the capitalism conception that profit simply stance as getting more money above the starting capital. If profit is conceive as helping and assisting others to live in a material well-being then many people may not concoct of their mind in searching illicit capital for sustainability.
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