Karl Marx, Part II

I. Use Value vs. Exchange Value

A. Under ideal conditions, human laborers produce:

1. for themselves and others close to them

2. in response to need in immediate environment

3. product has use value

a. value is a function of immediate personal use

B. Under industrial capitalism, human laborers produce:

1. not for themselves or those close to them

2. not in response to their own needs in immediate environment

3. product has exchange value

a. for sale on the market for $

C. In the latter system, humans lose their significance

1. a world of objects and markets

2. appears independent of humanity, exerts control over us

Marx: In this system, “Things are in the saddle and riding mankind.” Fetishism of commodities

D. Reification: the process by which humanly-constructed arrangements take on (are imbued with) objective properties that act back upon their creators

1. The “market”

2. The “economy”

3. “Inflation,” “deflation,” “recession,” etc.

4. Humans controlled by arrangements that are of their own making

5. A system of social super- and subordination – of domination – appears to about structural processes and demands over which humans have no power

II. Social Classes, Conflict, & Exploitation

A. Marx: this type of social system creates two classes

1. Bourgeoisie (Owners/Capitalists)

a. driven by commodity production circuit & profit-making imperative (more below)

2. Proletariat (Working Class)

a. state of pure subordination

b. must sell labor to survive

i. labor = commodity with exchange value

c. double dependency

d. de-skilling

3. Relation between the two classes is one of exploitation

a. capital only increases by paying workers less than the value they add to commodity

b. workers are “free” (in the sense that they are not [often] physically coerced)

i. BUT they must sell labor

c. Capitalist: seeks lowest possible cost

4. More on Exploitation (linked to concept of surplus value)

a. commodity production circuit

M¹ ( Use money to purchase goods/materials)

C Transform the materials in some way (mfg., e.g.): the process adds value to the original materials

M² Sell the transformed materials for more than cost of M¹ + C

b. Capital = money (M¹) used to make more money (M²)

M2

-- M1 + C

= Surplus Value (profit)

5. Both capitalists and working class are “cogs” in this system

a. capitalists fare better, but they must constantly compete with other capitalists

b. all search for ways to reduce cost of labor to “zero” (a key “contradiction”)

B. Social Classes

1. Defined by control over:

a. means of production

b. surplus value

2. Class consciousness

a. class in itself (false consciousness)

i. shared material conditions (exploitation)

ii. + no consciousness of shared exploitation

b. class for itself (class consciousness)

i. shared material conditions (exploitation)

ii. + consciousness of shared exploitation

c. class for itself = necessary condition for change

C. One factor preventing class consciousness: Ideology

1. A system of ideas designed to create or reproduce a system of social relations

2. Ideologies maintain false consciousness

a. Freedom & equality, e.g.

b. Religion

III. Missing Pieces &/or Problems

A. Misapplication of theory (Totalitarianism)

1. Vagueness about what new system would look like

B. Why no revolution?

1. Middle class

C. Misses the role of women

IV. Main Contradictions of Capitalism

A. Human Nature vs. Conditions of labor in Capitalism

B. Bourgeoisie vs. Proletariat

C. Labor as Cost vs. Labor as Consumer

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