Introduction To Political Economy: Marxian Economy (Essay Sample)
Concepts to understand
- Marx’s explanation of the working day, and how all terms from the above ‘Marx’ section relate in that working day.
- How the rate of profit is defined, and how it can increase / decrease (again, using the terms above)
- How capitalist competition relates to the Reserve Army of Labor
- How the capitalist system requires exploitation for accumulation
- How the value of labor power is related to the wage / variable capital, what could reduce variable capital besides just a wage decrease.
- How the wage is determined in classical economics / Marxian economics
- How capitalist competition can increase the reserve army of labor, but also tends to drive down the long term profit rate
- What Keynes thought about crisis tendencies of capitalism, and what can / should be done about them. Also how this differed from neoclassical theory.
- What components enter into Agg. Supply and Agg. Demand (hint: AS = yN AD = C+I+G)
- What Keynes said determines the variables in the AD equation (using terms like marginal propensity to consume, interest rate, etc)
- The role of the state according to Keynes
- The transition from golden age capitalism to neoliberal capitalism, and the way this shaped wealth and income inequality in the U.S.
- WHY NEOLIBERALISM IS NOT THE SAME THING AS NEOCLASSICAL ECONOMICS, AND NEOLIBERALISM IS NOT A SCHOOL OF ECONOMIC THOUGHT
- How neoclassical economists say markets work
- What neoclassical trade theory suggests about free trade / comparative advantage compared to what dependency theory says.source..
Introduction to Political Economy
Introduction to Political Economy
There are a number of theories used to describe the relationship between politics and economics, examining the most popular theories of Marxian and Keynesian. This essay examines Marx economic theory and its application within political economy. The paper also focuses on the Marx's theory of class struggle and integration of its perception when describing capital. Marx reviews how political economy is a product of capitalism through class struggle. The Keynesian economic theory review some of the key components of aggregate demand and supply, investment, interest, recession, labor market, market equilibrium, government spending and consumer among others.
Political economy is a social and practical duty. It is defined as the theory that integrate elements that work towards satisfying human needs and gives the greatest possible satisfaction to the society both for the present and future generations. The existing individualistic organization of society is regarded as a mean to the attainment of that end, hence aggregate supply is understood as the total output produced by a country and sell to other nations, whereas, aggregate demand is the total amount of money spent on domestic goods and services within an economy.
Marxian Political Economy
Marxist Political Economy theory comprises three key integrative and interdependent analysis tenets of the economy, society, and politics. These three fields are known to evolve historically. Production through this theory is achieved by exploitation of labor and capital within the capitalistic mode of production using class struggle. Marxist political economy theory presents two opposite classes; the capital is characterized by ownership while labor can be defined as variable capital. Variable capital is the cost used for hiring laborers, while the constant capital is the cost spent on physical assets such as machines, equipments, buildings and other assets. The capitals are free from how they engage and do their production; this is not the case with the laborers who undergo exploitation and alienation.
Marx analyzes the difference...
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