Marxist Economic Theory

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Questions and Answers

According to the theory presented, what is the primary source of wealth?

Industry

Labor (correct)

Nature

Capital

What did the Mechanics' Union of Trade Associations (Philadelphia, 1827) demand from labor?

Elimination of private property

The total wealth produced

An equal share of the wealth produced

A fair and full equivalent for their productive services (correct)

What is the concept of 'congealed labor' referring to?

Labor hours worked

Labor costs

Labor productivity

Labor accumulated in machines (correct)

What is the implication of the theory on private property rights?

It redefines private property rights Signup and view all the answers

What is the main difference between Marx's and the Mechanics' Union of Trade Associations' views on labor and wealth?

Marx was more radical, demanding all the wealth, while the union asked for a fair share Signup and view all the answers

What is the underlying principle of economic justice implicit in the theory?

Those who toil have a natural right to reap the fruits of their labor Signup and view all the answers

What is the primary condition for a household to participate in the production of wealth and earn a viable income?

All of the above Signup and view all the answers

What is the main reason labor would not earn a living wage if its value were objectively evaluated?

Labor is overpaid relative to capital instruments Signup and view all the answers

What is the principle that entails a right to produce wealth in a manner consistent with how wealth is being produced?

Principle of participation Signup and view all the answers

What is the implication of contending that men are justly entitled to a living wage?

Men have a right to the continuance of labor-intensive production Signup and view all the answers

What is the significance of the statement 'men have a right to the continuance of the conditions under which wealth is produced primarily by labor'?

It is an inaccurate statement of the right to earn a viable income Signup and view all the answers

What is the alternative to productive employment of one's own labor power in an industrial economy?

Productive employment of capital instruments Signup and view all the answers

What is the purpose of partnering or having proprietary interests in an industrial economy?

To earn a viable income through capital instruments Signup and view all the answers

What is the main characteristic of an industrial economy according to the text?

Wealth is produced primarily by capital Signup and view all the answers

What is the primary factor that determines the greater productiveness of one economy compared to another?

Employment of more man power Signup and view all the answers

What is the consequence of labor power making a relatively diminishing contribution to production compared to capital instruments?

Laborers may need to use labor unions to obtain a reasonable subsistence Signup and view all the answers

What is the relationship between the distributive share paid to capital owners and the productive use of their property?

The distributive share is less than the productive use of property Signup and view all the answers

What is the primary role of labor unions in the context of wealth distribution?

To counterbalance the power of capital owners and ensure a decent standard of living Signup and view all the answers

What is the key assumption underlying the comparison between Alpha and Beta economies?

All other factors are equal Signup and view all the answers

What is the implication of laborers receiving a small share of the total wealth produced?

They have not contributed significantly to the production of wealth Signup and view all the answers

What is the role of government in the context of wealth distribution?

To provide a countervailing power to labor unions Signup and view all the answers

What is the primary goal of laborers in the context of wealth distribution?

To obtain a decent standard of living Signup and view all the answers

What is the limitation of the principle of distributive justice in the context of an unjust economy?

It only focuses on the distribution of wealth and not on the underlying injustices. Signup and view all the answers

What is the condition required for distributive justice to be operative in an economy?

The economy must ensure every household has the opportunity to participate in production. Signup and view all the answers

What is the significance of the concentration of ownership of labor power by a small class of slave owners?

It prevents other men from earning a viable income. Signup and view all the answers

What is the primary focus of the principles of justice?

Primary distribution of wealth. Signup and view all the answers

What is the implication of the principle of distributive justice in an unjust economy?

It perpetuates the existing injustices in the economy. Signup and view all the answers

What is the significance of the ownership of means of production by a small class of slave owners?

It prevents other men from earning a viable income. Signup and view all the answers

What is the significance of the primary distribution of wealth?

It is the distribution of wealth that directly results from participation in production. Signup and view all the answers

What is the relationship between the principle of distributive justice and the unjust economy?

The principle of distributive justice is operative in an unjust economy despite its injustices. Signup and view all the answers

What is the underlying principle of justice with respect to the use of common knowledge in production?

Equal opportunity to master and utilize common knowledge Signup and view all the answers

What is the significance of the domestication of animals in the context of production?

It demonstrates the importance of individual effort in production Signup and view all the answers

What is the primary purpose of a system of universal, free public schooling?

To provide equal opportunities for all to acquire knowledge and utilize common knowledge Signup and view all the answers

What is the consequence of society and the state ensuring equal opportunities for all to acquire knowledge?

It ensures that only those who make an effort to acquire knowledge will share in the proceeds of production Signup and view all the answers

What is the primary distinction between justice and rank injustice in the context of production?

Justice entails equal opportunities to acquire knowledge, while rank injustice involves unequal distribution of wealth Signup and view all the answers

What is the implication of the statement that the production of wealth is a current activity for a current result?

Wealth production is a continuous process that requires ongoing effort and utilization of common knowledge Signup and view all the answers

What is the significance of the example of spoiled food being poisonous?

It illustrates the difference between those who utilize common knowledge and those who do not Signup and view all the answers

What is the primary obligation of society and the state with respect to the distribution of wealth?

To provide equal opportunities for all to acquire knowledge and utilize common knowledge Signup and view all the answers

What is the primary implication of a man's right to life in terms of acquiring subsistence?

The right to acquire subsistence by rightful means. Signup and view all the answers

What is the fundamental difference between a chattel slave and a person who cannot find employment?

The chattel slave is deprived of property while the unemployed person is not. Signup and view all the answers

What is the underlying principle of the 'right to a living wage'?

That a person has a right to earn a living wage proportioned to their contribution to the production of wealth. Signup and view all the answers

What is the primary condition necessary for a person to earn a living wage?

That they have a right to participate in the production of wealth through their labor power. Signup and view all the answers

What is the primary implication of a person being unable to use their labor power to participate in the production of wealth?

They are unable to earn a living wage. Signup and view all the answers

What is the primary difference between a person who has a right to earn a living wage and a person who is given subsistence?

The person who has a right to earn a living wage is able to participate in the production of wealth, while the person who is given subsistence is not. Signup and view all the answers

What is the primary implication of a person's right to life in terms of their property?

They have a right to property, including their labor power, which enables them to participate in the production of wealth. Signup and view all the answers

What is the primary condition necessary for a person to have a just claim upon a share in the distribution of wealth?

That they participate in the production of wealth through their labor power. Signup and view all the answers

What is the primary basis of human coexistence according to W. Stark's essay?

Justice Signup and view all the answers

What happens when the state of automated production reaches a certain point?

The demand for labor is substantially less than the number of those who need to participate in production Signup and view all the answers

What is required for a large number of households to participate in production?

The ownership of capital instruments Signup and view all the answers

What is the implication of asserting that every man has a right to obtain his living by earning it?

Every man has a right to participate in production Signup and view all the answers

What is the relationship between a sin against justice and the social bond?

A sin against justice is an attack on the social bond Signup and view all the answers

What is the primary role of charity in the context of wealth distribution?

To provide for pressing human needs Signup and view all the answers

What is the primary difference between a sin against justice and a sin against charity?

A sin against justice is more serious than a sin against charity Signup and view all the answers

What is the primary condition for pre-industrial workers to earn a living wage?

Their contribution to the production of wealth is justly requited Signup and view all the answers

What is the key concept that Marx uses to solve the problem of commensurating qualitatively different commodities?

Human Labor Signup and view all the answers

What is the primary objective of Aristotle's principle of justice in exchange?

To ensure equal value in exchange Signup and view all the answers

What is the main limitation of Aristotle's analysis of commensurating qualitatively different commodities?

Absence of a common measure of value Signup and view all the answers

What is the title of the book where Marx discusses the concept of value?

Capital Signup and view all the answers

What is the chapter and section where Marx quotes Aristotle's discussion of commensurating qualitatively different commodities?

Book I, Part I, Sect. 3 Signup and view all the answers

What is the main difference between Marx's and Aristotle's understanding of value?

Marx believes value comes from labor, Aristotle from market forces Signup and view all the answers

What is the implication of Marx's solution to the problem of commensurating qualitatively different commodities?

It ensures just exchange of qualitatively different things Signup and view all the answers

What is the key concept that Aristotle recognizes as lacking in his analysis of commensurating qualitatively different commodities?

Concept of Value Signup and view all the answers

Study Notes

Labor Theory of Value

Labor, either in the form of living labor or "congealed labor" (i.e., labor accumulated in machines), contributes to the production of wealth, except for what nature provides.
According to this theory, everything produced would belong to labor as a matter of just requital.

Early Labor Movement

In 1827, the Preamble of the Mechanics' Union of Trade Associations declared that labor is the source of all wealth, but they asked only for an equitable share of it, rather than demanding all the wealth produced.
They believed that laborers have a natural and unalienable right to reap the fruits of their own industry and should have an equal participation in the wealth produced.

Industrial Economy

If an industrial economy (Alpha) is compared to a non-industrial economy (Beta), Alpha will produce more wealth annually, but the contribution of labor will be no greater in Alpha than in Beta.
The greater productiveness of one economy can be attributed to labor only if one economy employs more man power or has a difference in average skill or strength.

Distribution of Wealth

In an advanced industrial economy, labor may not earn a living wage if its contribution is justly requited, as most of the wealth is produced by capital and the ownership of capital is concentrated.
Laborers may need to use labor unions and government support to obtain a reasonable subsistence or decent standard of living.
If laborers receive more than they have justly earned, the distributive share paid to the owners of capital must be less.

Right to a Living Wage

To contend that men are justly entitled to a living wage is equivalent to saying that men have a right to the continuance of conditions under which wealth is produced primarily by labor, which is not a valid right.
The right to earn a viable income is through effective participation in the production of wealth, taking advantage of the existing state of technology.

Participation in Wealth Production

In an industrial economy, there are two basic ways to participate in the production of wealth: through the productive employment of one's own labor power or through the productive employment of capital instruments in which one has property.
Households can also participate in production through combinations of these two means.

Aristotle's Principle of Justice in Exchange

Aristotle's principle of justice in exchange requires that the things exchanged be of equal value
He recognized that qualitatively different commodities cannot be equated unless they can be made commensurable
Aristotle believed that there is no objective and common measure of exchange value, which barred the way to further analysis

Marx's Solution

Marx offers a solution to the problem of commensurability by proposing the labor theory of value
According to Marx, the objective and common measure of exchange value is human labor
Two qualitatively different things can be made commensurable by measuring them by the amount of human labor involved in their production

Principle of Distributive Justice

The principle of distributive justice requires that the wealth produced be distributed according to the contribution made to its production
In a pre-industrial slave economy, distributive justice might be operative, but the economy would still be unjust in other respects
Distributive justice would still be done if the slave owners received the major share of the wealth produced because they owned the means of production

Right to Life and Subsistence

The right to life involves more than a right not to be murdered or maimed; it involves a right to acquire subsistence by rightful means
The right to life is meaningless unless it involves a right to earn a living through one's own labor
The right to earn a living is a fundamental right that is complementary to the right to produce wealth

Conditions Under Which a Man's Right to Subsistence is Denied

There are two conditions under which a man's right to subsistence is denied:
- Slavery, in which a man lacks any property through which he can participate in the production of wealth
- Unemployment, in which a man is unable to use his labor power to participate in the production of wealth and earn a living

Charity and Justice

Charity should become operative only after every step has been taken to see that justice is done, and every rightful claim is requited
Justice is the very basis of human coexistence, an indispensable precondition, whereas charity is an embellishment
A sin against justice is a more serious affair than a sin against charity

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Description

This quiz covers Marxist economic theory, focusing on labor's contribution to wealth production and the concept of 'congealed labor'.