1. ECONOMIC ANALYSES – CHAPTER 4 KARL MARX

2. ECONOMIC ANALYSES Marx’s theories of economy and society are presented primarily in Das Kapital Theories continue to influence sociology

3. 3 BASE—SUPERSTRUCTURE RELATIONSHIP

4. 4 BASE-SUPERSTRUCTURE: CAPITALIST IDEOLOGIES Democratic Liberties Religious Freedom Belief: Meritocracy- American Dream Choosing to Marry for Love Economic Relations in Free Market Capitalism Consumer Freedom to Buy We are self-interested actors.

5. BASE AND SUPERSTRUCTURE Relationship of superstructure and base Dialectical Mutual interdependence Marx wanted to analyze the core elements of capitalist societies Commodities (items bought and sold)

6. COMMODITIES Marx defined commodities as: External objects Capable of satisfying human needs

7. THE VALUE OF COMMODITIES Two important criteria –Use-value: a function of the actual physical properties of a commodity The purpose to which it can be put Its value in consumption –Exchange-value: The worth of the commodity relative to other commodities In modern societies, exchange-value is expressed in monetary terms (money) –Use value equals the qualitative value –Exchange-value equals the quantitative value

8. THE VALUE OF COMMODITIES com·mod·i·ty – noun. 1.A thing that exists “outside of us” that we exchange for something we want or need. 2.Something with use-value and exchange-value. USE VALUE = = Protect your feet when walking = $65 or $20 = (O f little use to the capitalist) (Potential profits for the capitalist) EXCHANGE VALUE

9. THE VALUE OF COMMODITIES According to Marx, in capitalist societies Almost all production is directed at exchange-value rather than use-value

10. THE VALUE OF COMMODITIES Surplus value: The difference between the exchange value of a commodity and the cost of producing it – including the raw materials, tools, and labor. Marx focused on labor He claimed that the exchange value of any item was determined by the socially necessary labor time required for its production

11. THE VALUE OF COMMODITIES Labor time & length of the work day The greater the number of hours employees are routinely expected to work for a given wage, The cheaper the commodities and The greater the potential benefit for the capitalist

12. THE COMMODIFICATION OF SOCIAL LIFE Capitalism is dependent on individuals wanting more and more products Capitalists generate more profit by expanding markets and selling more commodities

13. COMMODIFICATION OF SOCIAL LIFE: More and more of social life: Relationships Institutions Desires Feelings Becomes commodified: Packaged and sold in the marketplace for profit

14. LOVE IN CAPITALISM: “SHOPPING” FOR LOVE Commodification of Love and Relationships Commodification of Romance

15. THE CIRCULATION OF COMMODITIES Marx: Societies are an evolutionary process In nomadic societies, people owned little property Most items they created had use-value to people who produced them As societies evolved, exchange value became more important than use value

16. THE CIRCULATION OF COMMODITIES Simplest form of exchange was barter system Economies became more complex and money was introduced Process went through stages in which people continuously moved from the role of buyer to seller and back again (Circulation of Commodities).

17. THE FETISHISM OF COMMODITIES Detachment of objects from human efforts that created them. Money is so worshiped that objects are evaluated in terms of monetary value Money is used to express the value of all commodities

18. THE ACCUMULATION OF CAPITAL Marx described 2 functions of money. 1.Selling in order to buy A commodity (C) is transformed into money (M), then reconverted into a commodity (C) In summary C-M-C In this form, money is spent Resulting in use-value to the purchaser The commodity is consumed

19. THE ACCUMULATION OF CAPITAL 2.Buying in order to sell Money can become capital Accumulated goods for the production of other goods M-C-M: Motivating force is exchange value rather than use-value Result: Worthless products Dangerous products Waste

20. THE ACCUMULATION OF CAPITAL Money, unlike commodities, is distinguishable only in amount The C-M-C transaction has a finite end By contrast, the M-C-M continues indefinitely because the M does not disappear Its magnitude increases as profit-making continuously expands “Money begets Money.”

21. THE ARMY OF THE UNEMPLOYED The greater the size of army The more capitalists can force workers to: Increase production and Accept lower wages

22. THE ARMY OF THE UNEMPLOYED The army of the unemployed also reduces class solidarity by Creating conflict (competition for jobs) within the proletariat Making it less likely that the proletariat will organize against the capitalists

23. PURCHASING LABOR-POWER Capitalism brought together Owners of the means of production and Workers who could sell their labor- power

24. PURCHASING LABOR-POWER Marx: In order to maintain a fresh supply of labor-power in the market Workers must be able to raise their children Food, clothing, fuel, training and so on necessary to enable the workers’ children to replace current generation of workers

25. CLASS THEORY: Under capitalism, there is antagonism between the buyers and sellers of labor power Between exploiters and the exploited

26. SOCIAL CHANGE Classes through history: Free men and slaves Patrician and plebian Baron and serf Nobility and bourgeoisie Bourgeoisie and proletariat Exploiters and exploited

27. SOCIAL CHANGE “The history of all hitherto existing society is the history of class struggles.” (Marx)