...Marxist theory, the issue of ‘replacement power’ focuses on the necessity and not simply taking over the state but reorganizing it in ways that were unthinkable. This book addressed broad theoretical questions while critiquing academic social movement theory and interrogating what a Marxist theory of social movements might involve. This book examined how movements actually work, explored the political questions that confront movement participants, and argued understanding of how movements developed. The last part of the book gathered together both comparative historical studies and focused on recent movements against neoliberalism. Big Three in Economics Karl Marx is an Exodus. Marx argues that the pursuit of self-interest would lead to anarchy, crisis, and the dissolution of the private property-based system. Karl Marx broke the bonds of capitalism and tore apart the foundations of Adam Smith’s...
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...A comparison between Adam Smith and Karl Marx The purpose of this essay is to evaluate and discuss how economists Adam Smith and Karl Marx contributed to current management practices and, more specifically, how they influenced the field of economics. Through critical analysis, we will explore the theories of Adam Smith and Karl Marx. Adam Smith’s contributions, from division of labor and the shift from a mercantile society to a capitalistic one as proposed in his “Wealth of nations report,” will be critically evaluated as to determine both their relevance today and the influence that they have had. Similarly, Karl Marx’s theories that helped to develop the economy in its most prosperous time will be critically evaluated to determine their influence and relevancy today. Although very distant in their theories and time, both men have played key roles in the development of economics, while in turn influencing current management practices. Both men were able to change and introduce new philosophies while reacting to the circumstances of their times, while creating legacies through their works that are still relevant in today’s vastly different circumstances and society. Adam Smith Scottish economist Adam Smith, born in 1723, is responsible for the initial development of economics in the eighteenth century and provided the framework for how we approach economic issues today. Smith was an “advocate for a free market society where international trade through both imports...
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...competitiveness within the post-crisis economy. Causes, evoiutions and possibie innovative soiutions to fight against the undesirable effects of the economic crisis Laura Mariana CISMAÇ West University Timisoara laura.cismas@feaa.uvt.ro Ruxandra Ioana PITORAC West University Timiçoara ruxandrapitorac@gmail.com Abstract. The main objective of this paper is to highlight the need for promoting a new vision regarding competitiveness mostly in the context of amplifying the effects and the complexity of the nature of crisis manifested now on the international level (economic, environment, demographic, value and moral etc.). The economic thinking pays increased attention to the issues related to economic crisis, as well as the development of theories that give satisfactory answers about the causes and, especially, the solutions to the crisis. Using scientific observation and comparative case study as research methods, this paper aims to make a theoretical critical review of the theories regarding the causes of economic crisis over time and to identify and analyze some anti-crisis policies. Keywords: economic competitiveness. crisis; macroeconomic theories; anti-crisis policies; JEL Classification: E30, GOL REL Classification: 81, 8M. 24 Laura Mariana Cisma§, Ruxandra ioana Pitorac Introduction Theoretical controversy on crises has augmented over the last two decades with a special accent on system and stmcture crises, as well as on the crisis of intemational economic relations...
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...Moreover, although not inherently deterministic, he postulated that the construct of the free enterprise framework, what he termed as the ‘superstructure’, was built around two opposing classes. Principally, the bourgeoisie, owners of the means of production and capital, and the proletariat who were required to sell their labour to accrue wages or salaries. Marx contended that labour was the source of worth for the latter, which primarily produced ‘surplus value’ that was scrupulously claimed by the former as profit (Abercrombie et al. 2006,...
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...The problem with worker motivation has existed since the relationship of workers & owners first developed and these problems are likely to exist in the future as well. This has been a common subject for research by many theorist such as: Fredrick Taylor, Abraham Maslow, Douglas McGregor, Frederick Hertzberg, Karl Marx and Harry Braverman. I will discuss the critical and mainstream theories around the topic of worker motivation and then give examples to link them to current times, this will then lead to a conclusion supported by facts and theories. The main stream theorist I would like to draw upon first is Fredrick Taylor and his theory of scientific management. He linked productivity with economic reward and put forward the concept that worker are motivated primarily through pay or ''economic reward''. This concept of Fredrick has been accepted by management all over the world and still holds true for many business where productivity is linked to sales and then to economic rewards. [ (Locke, 1982, pp. 14-24) ]. Mayo conducted experiments between 1927 and 1937, that later came to be known as hawthorn experiments and came to the conclusion that physical, economic and social environment can effect workers productivity. These experiments were criticized by a number of theorist including Alex Cary, in the ''American sociological review (1976)'', and as such I won't be using them extensively for this essay. Abraham Maslow on the other hand came up with a more general approach to...
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...is a book written by Karl Marx and Friederick Engels. It was written 70 years before the Russian Revolution overturned capitalism. There are many prefixes to it including, the 1872 German Edition, Preface to the 1882 Russian Edition, the 1883 German Edition, Preface to the 1888 English Edition, the 1890 German Edition, the 1892 Polish Edition, and the 1893 Italian Edition. It caused a revolution to arise in Paris, causing a wave of revolutions to spread throughout Europe, and marked the beginning of Marxism. Marx was born in Trier, Germany, in 1818. His family was German Jews. Most of the people in Trier were Catholic, but Marx's father decided to abandon their Jewish faith and become Protestant in order to keep his job as a lawyer. Marx received his Ph. D. at the University of Berlin. He planned to teach there, but could not obtain a position because he professed Atheism. Marx decided on a career in journalism and became the editor of the Bourgeois newspaper of Cologne in 1842. He was suppressed from the newspaper for his radical views and moved to Paris, where he met Friederick Engels and became life, long friends. In 1847, Marx and Engels joined the Communist League, a tiny group of German socialist revolutionaries. They were advocates of the radical working-class movement. They linked the Communist Manifesto to the struggles of the working class, also known as proletariat, and were destined to play a role in overthrowing capitalism. Marx founded a branch of...
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...another change in American Society; his view points on modernity, the rise of capitalism as well as Bureaucracy make tangible points to set the stage for a crisis in America that takes in 2008. Weber predicted that in a crisis Bureaucracy will only fail if there is mismanagement, incompetence and/or abuse of its organizational system. He predicted to fix a system that has went array one would have to balance the effects of Bureaucracy to the peoples needs/desires for capitalistic gain. Karl Emil “Max” Weber was born in Prussia in the mid-1800's. Max Weber, (2006) German sociologist. (n.d.). Retrieved October 10, 2015. During this era, the Industrial revolution was in full swing brushing off the ideals of a traditional economy and embracing the new ideas of Modernity. Weber was not unaffected by these ideas and described the emergence of modernity, through the rise of capitalism. Weber noted that the this new economic system yielded old leadership he described as the charismatic, Authoritative and Traditional leadership. He outlined that Capitalism would bring a prosperity the likes people have never experienced. The positive affects of Capitalism he noted were an increased knowledge of skill-set, a change from reasoning to Rationalization and an efficiency in production. Weber outlined Rationalization in financial terms, as the assessment of benefits and costs of any project. Smith, A. (1974). He described the positive effects of Capitalism as the ability for individuals...
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...Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable. History A BASIC ILLUSTRATION OF ECONOMY/BUSINESS CIRCLE. Theory The first systematic exposition of periodic economic crises, in opposition to the existing theory of economic equilibrium, was the 1819 Nouveaux Principes d'économie politique by Jean Charles Léonard de Sismondi. Prior to that point classical economics had either denied the existence of business cycles, blamed them on external factors, notably war, or only studied the long term. Sismondi found vindication in the Panic of 1825, which was the first unarguably international economic crisis, occurring in peacetime. Sismondi and his contemporary Robert Owen, who expressed similar but less systematic thoughts in 1817 Report to the Committee of the Association for the Relief of the Manufacturing Poor, both identified the cause of economic cycles as overproduction and underconsumption, caused in particular by wealth inequality. They advocated government...
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...Capital Gains A majority of people in America can hardly imagine an existence without capitalism; individuals consume without a thought when we buy the latest cell phone or a new pair of hundred dollar designer jeans. It is clear that most of the world supports some form of capitalism and therefore, at least for now, capitalism has won the struggle between economic systems. Capitalism began in 1200 CE with rug merchants. Just like many traders, today, the rug merchants had to borrow money to buy their wares in order to then resell them for profit, but they had to pay back the money borrowed—usually with interest. This was called mercantile capitalism and it was a global phenomenon, from the Indian and Chinese Ocean trade to Muslim merchants who funded trade caravanserai across the Sahara. Later, merchants in Britain had expanded capitalism by developing stock companies which financed even bigger trade missions. Increased wealth of course resulted by the increased investment, but it only affected as small percentage of the population and did not create cultural influence from capitalism. Mercantile capitalism only affected a small percentage of the population, whereas industrial capitalism impacted majority of the population. Industrial capitalism was something altogether different, both in practice and scale. According to Joyce Appleby’s definition of industrial capitalism: “An economic system that relies on investment of capital in machines and technology that are used...
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...KARL MARX AND THE CONCEPTS OF SOCIETY AND SOCIAL STRUCTURE BEING AN ASSIGNMENT SUBMITTED BY EKOTT, IMOH BERNARD 1.0 INTRODUCTION The philosopher, social scientist, historian and revolutionary, Karl Heinrich Marx, is without a doubt the most influential socialist thinker to emerge in the 19th century. Although he was largely ignored by scholars in his own lifetime, his social, economic and political ideas gained rapid acceptance in the socialist movement after his death in 1883. Until quite recently almost half the population of the world lived under regimes that claim to be Marxist. This very success, however, has meant that the original ideas of Marx have often been modified and his meanings adapted to a great variety of political circumstances. In addition, the fact that Marx delayed publication of many of his writings meant that is been only recently that scholars had the opportunity to appreciate Marx's intellectual stature. Karl Heinrich Marx was born into a comfortable middle-class home in Trier on the river Moselle in Germany on May 5, 1818. He came from a long line of rabbis on both sides of his family and his father, a man who knew Voltaire and Lessing by heart, had agreed to baptism as a Protestant so that he would not lose his job as one of the most respected lawyers in Trier. At the age of seventeen, Marx enrolled in the Faculty of Law at the University of Bonn. At Bonn he became engaged to Jenny von Westphalen, the daughter of Baron von Westphalen , a prominent...
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...satisfied. Nevertheless, since after the moment I have started my CAL course, things are not similar compared to my high school period. With only hard work but without good analysis and critical evaluation, a desirable grade could not be achieved and this is mainly due to the differences of system of education. During my A-level course, I have suffered a great time in order to put myself in a place where I could comprehend the core subjects. Thus, these have taught me to study hard and smart. Karl Marx’s views on various aspects of society have been one of my favourite reading materials. All societies are divided into social groups known as classes. Applying the class model of Karl Marx into the current world, such claims are succinctly clear in my country with all the injustices and corruptions which have occurred. I was once being in a very wealthy and prosperous family but not until the world crisis which deeply and badly affected not only my country, but the world, and thence my family’s financial. However, I developed a keen awareness of the fragility of life with the new sense of appreciating for the simplest of my old comforts. Although life is unfair, reproaching such forces does not make a difference, in fact I believe that the only solution to achieve equity and...
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...planned economies. Reforming the banking sector in former countries unlike the United States, that displayed communism and creating a new and improved culture of trust and confidence has been an important task in the process of transition to a market economy. In the financial system that we have as a dominant country, different flow from those people who have extra funds to those who don’t have a lot of funds, either by direct deposit, financing that is market based or by an indirect finance that has a bank based. The financial system brings together and involves all types of financial markets, financial instruments and any other of the institutions involving the financial system. The main issue that everyone wants to know is whether the make up of our financial system exhibits the potential for economic growth? The answer to the million dollar question is yes our system does exhibit economic growth. “According to cross-country comparisons, individual country studies as well as industry and firm level analyses, a positive link exists between the sophistication of the financial system and economic growth”(Duisenberg). However there are still some minor questions that we do not have the answers too but our financial system is directly linked to economic success in the country and the world. Regarding the unanswered questions, economists still have the presence of contradicting views exhibiting the underlying sequences in the operation that explain the positive relationship...
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...ANALYTICAL ESSAY 1: How Adam Smith Has Shaped Our Economy For The Better Jose Arguello University of Redlands July 25, 2013 Introduction The purpose of this paper is to analyze and discuss how Adam Smith’s economic theories have shaped our economy for the better. This paper will define Adam Smith’s major economic theories and relate them to today’s economy. This paper will conclude with recommendations on how some of these theories can be improved. Discussion When people think of Adam Smith they think of Adam Smith “the economist.” In fact, many don’t realize that Adam Smith was a philosopher at heart. From that critical thinking space as a philosopher, Adam Smith developed his economic theories. Adam Smith obtained a professorship at Glasgow teaching moral philosophy. “Here, Smith developed his passion for liberty, reason, and free speech. In 1740 Smith was awarded the Snell exhibition and left to attend Balliol College, Oxford.” (Buchanan, 2006) These are important facts about Adam Smith because it gives us an insight to his philosophy and eventually into his economic theories. Furthermore, before Adam Smith wrote his well-known work, The Wealth of Nations, he wrote The Theory of Moral Sentiments. It is important to note that in writing The Theory of Moral Sentiment, Adam Smith’s goal “was to explain the source of mankind's ability to form moral judgments, in spite of man's natural inclinations towards self-interest. Smith proposes a theory of sympathy...
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...XLV No. 2 June 2011 DOI 10.2753/JEI0021-3624450213 Banking Ethics and the Goldman Rule John P. Watkins Abstract: Insulating people from the effects of the crisis has left intact the habits of thought and the basic institutional structure. The continued reign of pecuniary values leaves intact the Goldman Rule: pursue profitable opportunities regardless the effects on others. Within a culture dominated by pecuniary values, profitable opportunities present a coercive force. Laissez-faire policies allow profitable pursuits without restraint. Subprime mortgages offered an opportunity to tap a new source of profits, namely, the increase in housing prices. Many financial institutions engaged in unscrupulous actions to convert household wealth into corporate profits. Efforts to reign in the industry remain wanting. Keywords: acquisitive society, banking ethics, banking profits, Goldman Sachs, subprime crisis JEL Classification Codes: A13, B25, B26, D63 The bailout of the banks violates the legitimacy of markets, the ethos that profit represents the reward for success, loss the punishment for failure. The outrage over bailouts combined with insulating people from the effects of the crisis has fostered an anti-interventionist reaction and a resurgence of neoliberalism. Insulating people from the effects of the crisis has largely left intact the habits of thought and the basic institutional structure. The continued reign of pecuniary values leaves intact the Goldman Rule: pursue...
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...MARXISM Over 150 years ago Karl Marx and Friedrich Engels wrote The Communist Manifesto. In The Communist Manifesto they were the first to give a thorough and scientific analysis of the laws and workings of capitalist society: why it results in the polarization of wealth and how it can be overthrown. In the last few years their ideas have been regaining popularity. At the end of 1999 Marx was voted the greatest thinker of the millennium in a BBC online poll. It is the economic crisis of capitalism internationally that has forced many to reassess their view of Marx. Capitalism is a cyclical system: crises can be caused by a number of factors, such as financial crashes or political unrest. Marx recognized that capitalism, despite all its abuses, played an important role in developing the productive forces and the world market. It was an advance from the feudal societies that preceded it. Today, capitalism has developed the world market and the wealth, science and technology have laid the foundations for a socialist society. Under capitalism, wealth and power have always been concentrated in the hands of the capitalists. And the development of technology is driven by the need for profit. The anarchy of the capitalist market always results in increasing wealth and power for a few but poverty for the many. Today the capitalists are a far wealthier and a far smaller class than they were in Marx's time. In the last 50 years the wealth gap between the richest 20% of humanity and...
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