Karl Marx's Economic System

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Capitalism
Each economic system constitutes institutions that have different methods that guide the allocation of resources such as services and products. In many occasions, economic systems differ based on the primary factors such as who owns production and the directions given on the allocation of resources. The main factor that differentiates the economic systems is the level of government participation in the economic perspective (Amar and Richard). Capitalism can be defined as an economic system and type of production where industries, trade and production means have a large percentage that is privately owned. In a capitalist economic system, each person or business enterprises work on interests of its own and maximizes profits depending …show more content…

Economists, historians, and political economists have different perspectives of analyzing capitalism in practice. The perspectives include welfare capitalism, free market capitalism or laissez-faire, corporatism, state, social and crony capitalism. Each of the above models uses varying degrees of dependency on the free capitalist markets, hindrances to free competition, the inclusion of social policies sanctioned by the state and the public ownership. There are policies that rule on the extent to which the markets in a capitalist economy have the property that is privately owned (Bruno). Many states have adopted a mixed economy that integrate both centrally planned economics and …show more content…

He says that in a progressive historical stage, capitalism could stagnate the economy. He adds that capitalism implies an economic and social relations between people and things. In addition to that, Marx saw that private ownership of manufacturing firms enriches capitalists at the expense of the laborers. In other words, capitalism enriches the owners as the workforce is exploited. Therefore, the private ownership over all means of production means that a social class is created where resources are not distributed equally (Bruno). It maximizes the dependency of the poor on the

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