I have always agreed with socialism in general and found America’s history vs. socialism and labor to be quite deplorable. Now please do not confuse this with Communism as Communism is a political ideology and has very little to do with socialism except that Mr. Lenin decided to mix these two elements and then let Mr. Stalin take it about 10,000 steps too far.
The most simple and amazing concept that Marx made was that he took the theory of surplus and went step further and described surplus value. The example is that when a worker spends 8 hours a day expressing himself through labor, he can produce large quantities of goods which in turn lead to profits. However, the worker does not see any benefit of his labor; his wage has already been taken into account through constant capital. This inability to use, express, or see the benefit of labor leads to alienation, which causes the worker to stop seeing himself as a human being and he begins to see himself as merely an object. To create an alternative, Marx created a theoretical system in which workers were paid based on the quantity of their labor, as well as the quality of their labor. Marx also took into account social necessity and the amount of schooling a person had received when determining wages.
The part I also find interesting is that at some point capitalism has to run its course based on simple supply and demand and the overall progress of under-developed nations. For 200+ years the US, England, France, Germany, Japan and other developed nations have been able to do the following program –
- Investors buy 1 million dollars of raw goods.
- Investors than use labor to trasnform the raw goods into 2 million worth of final product.
- This result in a gross gain of 1 million
- Labor then receives at most 20% of the gross which is $200,000
- Investors/Management then use and manipulate the remaining balance with either additional investments or lateral movement of the funds into other sources (resellers, transportation, etc.)
The problem is then you have a labor force that has less than $200,000 to purchase the 2 million in goods which is not possible. So the answer is simple – export. It used to be exporting to other states and now it is other countries. This works decently for Investors provided that the importer is in need or demand of the byproduct and that they cannot produce said product on their own. Now what happens once the importers begin to produce their own goods and the export market is decreased as these “under developed” nations develop? Where are the goods sold?
Now what if Labor made the 80% and the Investors made 20%? What if Labor now had the means to purchase the product they made and lessen the need for exporting?
Just wondering today.