Microeconomics- Contradictions of Capitalism and how Marxism provides a corrective

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Contradictions of Capitalism and the Way Marxism Provides a Corrective
Capitalism and socialism are a relevant concept in our society up to today. Karl Marx was the founder of these theories to enable people to understand how they can benefit from resources in the environment. Karl Marx had doubtless intention of stating that socialism was more beneficial than capitalism of resources in societies. The two policies led to conflicts among people in the employment sector, working environments, and the global political systems in various countries around the world. The theories of both capitalism and socialism have different consequences to the economic, social, and political networks. Therefore, this study aims to differentiate the impacts, including the adverse effects and positive effects to society development.
Therefore, in our societies, we have a duty to judge from the Marxist critique of capitalism as it helps to understand the failures of capitalism theory to construct an alternative socialist approach. The approach led to the unequal distribution of resources in the world as the system concentrate resource to the hands of the affluent class in society. The other acknowledgment of the Marxist concept is about the polar opposite of the neo-classical approach. It is the historical accounts as well as idiographic and empirical methodology (Empire Files). Capitalism theory is a belief shaped by the history of our culture, for instance, experience and rather not an ideal abstract. It associates economics as a social science instead of being a natural science in the cultures of people.
Marx has various beliefs on the nature of capitalism according to our daily lives. The labor theory of value is a common aspect of capitalism theory that creates an unjust system in the distribution of his ideas and the fall of its validity. Despite this theory creating an unequal distribution of labor in people, Marx embraced it and built something of value to the society from it. It traces the total cost of the commodity to the number of labor that can appropriately produce it. We have three crucial footnotes that define the value of labor theory. It has to associate work as a social necessity. It reflects the general standards of outputs and technology development in a standard public way, depending on the given timeframe and space. People nowadays use the new way of interaction, such as social media, to share ideas on the social and capitalism theory. People can understand the distribution of goods in society and emphasize the government on equal resource sharing in the community. For instance, through capitalism, the government can increase the prices of the product, which will enable them to purchase a high cost and offer subsidies to poor people. The government can donate the goods freely to the low class to reduce the gap in unequal resource possession in society.
The second aspect of labor theory is to account for the skills of labor applied to the economic system or employment section. People with a high level of skills should have entitlement to proper resources to reward their efforts in working fields. It will enhance motivation for future improvement of the company`s performance. The indirect labor supervising of the work is also a critical element for consideration of this theory (Empire Files). Workers with skills and techniques require minimal management as they strive to achieve stipulated goals with or without senior observation. Such laborers should earn high-income facilities to reward their motives towards work. The company should base on the class levels of the employees, as it will lead to the allocation of wages to the wealthy class. Marx believes that labor cost is reflective of the quantity needed to assemble it. Therefore, the payments should be the same as the cost of maintaining the ability to perform a specific job.
Marx considered the under-consumption Paradox as an essential value to the product of labor respective to the value of the worker. He found employees' primary goal as a factor that can direct maximization of wages, as it hinders the ability of the employee to extract surplus value. Marx saw it as a contradiction according to the cost of production as a destabilizing input in an economy. It was an aspect of a dispute with no proper way towards achieving equilibrium in the marketplace. In this case, if employers have the upper hand, then the surplus value will only benefit the rich in society. It increases the costs of consumption the low-income earners in the community. However, when employees have an advantage, the consumers will have the opportunity to utilize, but the surplus value will not be sufficient to the economy. Marx identified the contradiction of microeconomics and macroeconomics according to the nature of the business (Empire Files). Any firm has the aim of reducing the wages cost that will result in reduced manufacturing costs of the industries.
However, when all firms want to reduce the cost of production will lead to low incomes to economic diversity. Some people argue against this principle of methodological individualism. The approach has led to Keynes` macroeconomic theories in the market rationality. It has led to the translation of aggregate demand according to differentiation in the economy of the market.
Marx appreciated the capitalism approach in the economy of our countries. He asserted path-dependence value as a leading force in the economy of many nations. Capitalism was an exceptional force that led to faster productivity growth and an appropriate tool for technological creativit...