Marx's analysis of history is based on his distinction between the means of production, literally those things, like land and natural resources, and technology, that are necessary for the production of material goods, and the social relations of production, in other words, the social relationships people enter into as they acquire and use the means of production. Together these comprise the mode of production; Marx observed that within any given society the mode of production changes, and that European societies had progressed from a feudal mode of production to a capitalist mode of production. ………. The capitalist mode of production is capable of tremendous growth because the capitalist can, and has an incentive to, reinvest profits in new technologies. Marx considered the capitalist class to be the most revolutionary in history, because it constantly revolutionized the means of production.
Increased acceptance of imperialism echoes the capitalist nature of the international community. In other words, changes within capitalist conditions sparked changes within imperialism. Expansionism represented the ability to expand the United States’ capitalist market through an increase of trade, inexpensive raw materials, and labor. When wealth from undeveloped nations was exported back to the United States, it increased wages for working class Americans
(Kelly, M. and McGowan, J., 2012)(p.19 & 21). Fiscal policy is more effective in promoting economic growth, by increasing government spending or reducing taxes. Fiscal policy in economic has reflected both political and economic realities. Monetary policy has the ability to slow down the economy in order to promote full employment and inflation. The monetary policy to economic is to increase the amount of money, by cutting interest rates.
(p. 191) ______________ theory is typically associated with greater profits. a. Signaling b. Compensating wage differentials C. Efficiency wage d. Human capital 4. (p. 193) Implications of _______________ theory are that pay level affects an employer's ability to recruit.
Smith was the first economist who developed a theory about surplus value. Regarding Ricardo, him focus his work in develop the Labour Theory of Value where established that the value of commodities are according to the hours of work necessary to produce it. According to Marx, the approaches of both classical political were incomplete. This was due to the assertion from both that the human labour was the only one that adds value. However, Marx in Wage Labour and Capital demonstrate the surplus value which is appropriate by the capitalist in order to grow his capital.
Even though union members—those who keep their jobs--- get their wages increased and enjoy improved working conditions and benefits, the economic issues that most unions brings to the United States outbalance the positive effects. As the United States competes with the rest of the world, firms struggle when one of their highest costs is directly related to labor. In the article Labor Unions by Morgan Reynolds, the author accurately explains this phenomenon: while higher wages are successfully achieved, they simultaneously reduce the number of jobs available in unionized firms. This occurs because of the basic law of demand: once prices of labor rise, then employers will purchase less of it. Hence such members’ benefits are achieved at the expense of consumers, nonunion workers, already unemployed people, taxpayers, and corporation owners (Reynolds,
Fiscal Policy captures the changes in taxes and government spending. In the United States, the president, and Congress make these decisions. Because of its ability to affect the total amount of output produced (GDP), Fiscal policy is an important tool for managing the economy. Its ability to affect the total amount of output produced raising the demand for goods and services is the first impact of a fiscal expansion and this increased demand leads to increases in output and prices. The level to which higher demand increases output and prices depends on the state of the business cycle.
The scientific basis of the golden rule is in the mutuality of gains from trade, in the demand, generated by the engines of supply, in the expanded opportunity created by growth, in the usual and still growing economic futility of war (Gilder, 9). The author discusses that Adam Smith, the founding father of Scientific Management, wrote in his book The Wealth of Nations, that the productive powers were very important to the rank of the people. However, Smith’s followers beginning with David Ricardo became engrossed with statistics and distributions. “This mode of thinking, prominent in foundation-funded reports, best selling economics texts, newspaper columns, and political platforms, is harmless enough on the surface. But its deeper effect is to challenge the golden rule of capitalism, to pervert the relation between rich and poor, and to depict the system as “a zero-sum game” in which every gain for someone implies a loss for someone else, and wealth is seen once again to create poverty” (Gilder, 10).
There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
Investment projects, via the multiplier effect should result in an increase in the GDP of the economy; However in order to undertake investment, there must a high savings ratio must be obtained as it is essential for the accumulation of capital. Labour plays a critical role in achieving economic growth. The higher the number of workers there is in an economy should lead to economic growth. If there are more people working and unemployment levels are relatively low, then there is likely to be the achievement of economic growth as human resources