RELEVANCE OF MARX TODAY
Why exactly are we showing you a ridiculous and funny video about a greedy child? In a way Marx work and criticisms about capitalist system focuses a lot on the greedy nature of this system and everything that is wrong with it as a result. Looking at it retrospectively the dude makes a lot of sense. On an individual level we have become obsessed with the latest technology, gadgets or even clothes. Similarly companies and corporations have also become greedy and wish to dominate home and international markets competing against one another and wishing to get the biggest profit margins they possible can through whatever means.
Let us start off by looking at several different modern day examples and how Marx’s theory applies:
The Great Recession
Marx discussed at great lengths the happening of recessions and why they would happen. And it has to be acknowledged just how right he was. Great recessions have been occurring in capitalist societies throughout history. In France around the time of the French revolution, in the 1930s, and finally the economic dip which started in 2008 and we are still desperately trying to get out of. A key argument Marx put forward was that because we have the constant aim to create a profit this would ultimately lead to the mechanization of the workforce to produce more goods and at the same time the workers would lose their jobs and wages would be reduced making them unable to buy the goods produced thus sending the country into depression.
Imaginary appetites
Marx talked of imaginary appetites where he argued we are made to think that we need the latest pieces of technology. Marx has a valid point. Nowadays you can’t take a walk to the corner shop without seeing several adverts encouraging you to buy s new product or a new version of a product we already have. Marx argued that advertising has created what he called imaginary appetites. As a result we are becoming more concerned with acquiring the things capitalism tells us that we need as opposed to worrying about bigger issues such as starvation in Africa, cancer or HIV.
Globalization
Marx predicted why capitalism has spread across the work before it had actually happened. His explanation for globalisation was incredibly accurate and is reflected in today’s modern day world. He argues that countries would expand globally in search for new markets for their products and cheap labour. Marx was definitely right on both accounts.
The products we buy are unlikely to be made in the country the company is founded and originated from. How many times have you bought a toy from a British company, turned it over and it says ‘Made in China’? Or how many times have you looked on the label of your favourite piece of clothing and it says ‘Made in Thailand’ or ‘Made in Sir Lanka’. This is purely because it is in the interest of companies to put production companies in those countries. The majority of these countries are LEDCs who have few regulations and laws to protect their workers or ensure fair wages meaning that workers can be paid incredibly low wages even as low as 50p a day. These individuals are so dependent on the wages they do not complain or threaten to strike for higher wages in fear that the companies will move factories to another country where people will be willing to work for the lowest wage possible. Marx called this the ‘reserve army of labour’ as they are willing to work for whatever amount. Workers therefore are scared of unemployment and poverty and so allow themselves to be exploited.
Domination of markets by big corporations
It was assumed in the classical theory of economics that competition was natural and therefore it would continue to exist in the economy. However Marx predicted that power would centralise in large monopoly firms. He, again, predicted this before it even began to be apparent as in the 20th century this began to accelerate. More and more small businesses began to close as they could not compete with these large businesses. People are more likely now to buy a brand as opposed to buy the same product from a company they have never heard of.