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In: Economics

Marx starts his economic analysis by stating, labor is the only factor in production that creates...

Marx starts his economic analysis by stating, labor is the only factor in production that creates value. According to mainstream economics, on the other hand, means of production, for example, machines used in production, also create value. Why does Marx think, machines used in production don’t create value? What kind of a role do the machines play in the Marxian model of production? What do you think in general on the role of machines in economics? Do you think labor is more important and central compared with the role of machines in production? Or do you think machines are as central as labor in production? Explain your answer.

Solutions

Expert Solution

According to Marx, man, by nature are creative who have the capability to transform the world. But, when he observed the modern technological advancements, he felt that the so called forces of demand and supply, controlling the market actually blocks the individual creative capacity. The real value of production lies with the labor and only labor can create value. As he puts, capital is the accumulated labor that helps in further production. This is why Marx think, machines used in production do not create value.

Karl Marx's view on machines was that, "The hand-mill gives you as society with the feudal lord; the steam-mill; society with industrial capitalists." this clearly reflects how much Marx was against machines and technology. The role of machines in Marxian model of production is in such a way that the modern technological advancements, along with the production of goods based on the profit or loss, has alienated man from producing what is in need in the society. He observes, men are required to work for the capitalists to make profit and this requires monotonous work, which has made people to work like machine, without any concern for human touch or need. According to him, this led to the creation of industrial capitalists.

Machines do play a vital role in any economy, especially in any production process, and it requires one time investment as compared labor cost.

Though machines play a vital role as important as human labor, it is always labor who plays a bit more important role than machines. Because, though machines can work for hours, with perfection, and at less cost may be, as compared to labor, no machine can be as creative as human mind, who could understand the societal needs and work with human touch.


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