Theories Underlying Marxism A Theory Of Tradition...

Theories underlying Marxism: †¢ Hegelian dialectic †¢ Diagram of Marxist conceptions †¢ Assumptions that are made in order to reach these conclusions The Labor Theory of Value is a theory of tradition Marxian economics which explains how the working class are exploited under capitalism and how capitalist society works. This theory explains that that the value of commodity is measured by the average hour needed to produce it. It was developed in Marx‘s â€Å"Capital† (1867). Marx is trying analyze the theory with a different perspective from other capitalist, still using principles of classical economics. He also stands closely to Ricardo concerning notion that rent is capture of productivity by landlords, they are not actively producing anything. He believed that his version can explain the value of all commodities, including the commodity that laborers sell to capitalists for a wage. Marx called this commodity labor power. He clarified that the labor power must depend on the number of work hours it takes society to accommodate, dress and feed the laborer that he would have a capacity to work. He claimed that owners in privileged position exploit workers, even though if they get paid the fair wage in some ways capitalist still pushes the laborers to work more time than it is actually needed to create the labor power of worker. Marx received criticism of this idea because it is vaguely explained, thus shows the weakness of its logic and underlying assumptions. Marx believed that