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a
Western point of view and based on secondary sources, rather than being based directly on the experiences of people living in "actually existing socialist countries". That debate has typically counterposed a socialist ideal to a poorly understood reality, i.e. using analysis which due to such party stultification and shortcomings of the various parties fails to apply the full rigor of the dialectical method to a well informed understanding of such actual conditions in situ and falls back on trite party approved formulae. In turn, this has led to the accusation that Marxists cannot satisfactorily specify what capitalism and socialism really are, nor how to get from one to the other—quite apart from failing to explain satisfactorily why socialist revolutions failed to produce the desirable kind of socialism. Behind this problem, it is argued the following:
1094:("employment") by the direct producers, who are compelled to sell their labour power because they lack access to alternative means of subsistence (other than being self-employed or employers of labour, if only they could acquire sufficient funds) and can obtain means of consumption only through market transactions. These wage earners are mostly "free" in a double sense: they are “freed” from ownership of productive assets and they are free to choose their employer.
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830:. Although capitalism has existed in the form of merchant activity, banking, renting land and small-scale manufactures in previous stages of history, it was usually a relatively minor activity and secondary to the dominant forms of social organization and production with the prevailing property system keeping commerce within clear limits.
1083:). In short, a capitalist must use money to fuel both the means of production and labor in order to make commodities. These commodities are then sold to the market for a profit. The profit once again becomes part of a larger amount of capital which the capitalist reinvests to make more commodities and ultimately more and more capital.
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and the constraints of competition—do not co-ordinate their activities according to collective, conscious planning. Enterprises are able to set their own output prices within the framework of the forces of supply and demand manifested through the market and the development of production technology is guided by profitability criteria.
1425:
the call for a prescriptive description of exactly what that society would be like and how it is to emerge from the existing class-ridden one, other than by the conscious struggle of the masses, is an unwitting expression of precisely the problem that is supposed to be being addressed (the imposition of social structure by elites).
1375:
Orthodox
Marxist debate after 1917 has often been in Russian, other East European languages, Vietnamese, Korean or Chinese and dissidents seeking to analyze their own country independently were typically silenced in one way or another by the regime, therefore the political debate has been mainly from
1150:
occurs. In the history of capitalist development since 1820, there have been more than 20 of such crises—nowadays the under-utilisation of installed productive capacity is a permanent characteristic of capitalist production (average capacity utilisation rates nowadays normally range from about 60% to
883:
by capitalism, which is expressed in price relationships between inputs and outputs (wages, non-labor factor costs, sales, profits) rather than the larger rational context faced by society overall. That is, the whole process is organized and reshaped in order to conform to "commercial logic". Another
1137:
is heavily dependent on levying taxes from the population and on credit—that is, the capitalist state normally lacks any autonomous economic basis (such as state-owned industries or landholdings) that would guarantee sufficient income to sustain state activities. The capitalist state defines a legal
1086:
Private ownership of the means of production ("private enterprise") as effective private control and/or legally enforced ownership, with the consequence that investment and management decisions are made by private owners of capital who act autonomously from each other and—because of business secrecy
1078:
The means of production (or capital goods) and the means of consumption (or consumer goods) are mainly produced for market sale; output is produced with the intention of sale in an open market; and only through sale of output can the owner of capital claim part of the surplus-product of human labour
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existed incipiently on a small scale for centuries in the form of merchant, renting and lending activities and occasionally also as small-scale industry with some wage labour (Marx was also well aware that wage labour existed for centuries on a modest scale before the advent of capitalist industry).
851:
is the condition of rationality in the capitalist system and a necessary condition for the next cycle of accumulation/production. For this reason, Capitalism is "production for exchange" driven by the desire for personal accumulation of money receipts in such exchanges, mediated by free markets. The
1424:
and its importance in the struggle to achieve socialism. Finally, in the wake of the disasters of socialism in the previous century most modern
Marxists are at great pains to stipulate that only the independently acting working class can determine the nature of the society it creates for itself so
1419:
assert or imply a "uni-linear" view of human development, although
Marxism does claim a general and indeed accelerating secular trend of advancement, driven in the modern period by capitalism. Similarly, Marxists, especially in the period after 1917, have on the contrary been especially mindful of
1328:
As mentioned, Marx never explicitly summarised his definition of capitalism, beyond some suggestive comments in manuscripts which he did not publish himself. This has led to controversies among
Marxists about how to evaluate the "capitalist" nature of society in particular countries. Supporters of
1141:
Capitalist development, occurring on private initiative in a socially unco-ordinated and unplanned way, features periodic crises of over-production (or excess capacity). This means that a critical fraction of output cannot be sold at all, or cannot be sold at prices realising the previously ruling
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and a broader literature which does in fact supply such specifications. The latter are partly superficial complaints which can easily be refuted as they are diametrically opposite of well known statements by Marx, Lenin, Trotsky and others, part pettifogging and redundant restatement of the same
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are supplied through the market (i.e. they are commodities) and essentially all production is in this mode. For example, in flourishing feudalism most or all of the factors of production including labor are owned by the feudal ruling class outright and the products may also be consumed without a
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reject the definition of the capitalist mode of production given above. In their view, claimed to be more revolutionary (in that true liberation from capitalism must be the self-emancipation of the working class—"socialism from below"), what really defines the capitalist mode of production is:
1023:
exchange and consequently simple commodity production, which form the initial basis for the growth of capital from trade, have a very long history. The "capitalistic era" according to Marx dates from the 16th century, i.e. it began with merchant capitalism and relatively small urban workshops.
1031:
For most of human history, these did not come together. Capital existed and commercial trade existed, but it did not lead to industrialisation and large-scale capitalist industry. That required a whole series of new conditions, namely specific technologies of mass production, the ability to
1155:
In examining particular manifestations of the capitalist mode of production in particular regions and epochs, it is possible to find exceptions to these main defining criteria, but the exceptions prove the rule in the sense that over time the exceptional circumstances tend to disappear.
1125:
Out of preceding characteristics of the capitalist mode of production, the basic class structure of this mode of production society emerges: a class of owners and managers of private capital assets in industries and on the land, a class of wage and salary earners, a permanent
1097:
Being carried out for market on the basis of a proliferation of fragmented decision-making processes by owners and managers of private capital, social production is mediated by competition for asset-ownership, political or economic influence, costs, sales, prices and profits.
852:
markets themselves are driven by the needs and wants of consumers and those of society as a whole in the form of the bourgeois state. These wants and needs would (in the socialist or communist society envisioned by Marx, Engels and others) be the driving force; this would be "
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None of these stratagems, it is argued, are either warranted by the facts or scientifically sound and the result is that many socialists have abandoned the rigid constraints of
Marxist orthodoxy in order to analyse capitalist and non-capitalist societies in a new way.
884:
way of saying this is that capital accumulation defines economic rationality in capitalist production. In the flourishing period of capitalism, these are not operating at cross purposes and thus capitalism acts as a progressive force (e.g. against feudalism). In the
842:
is epitomized by the so-called circuit of commodity production, M-C-M' and by renting money for that purpose where the aggregate of market actors determine the money price M, of the input labor and commodities and M' the struck price of C, the produced market
1142:
rate of profit. The other side of over-production is the over-accumulation of productive capital: more capital is invested in production than can obtain a normal profit. The consequence is a recession (a reduced economic growth rate) or in severe cases, a
1044:
countries, many of these conditions do not exist even today even though there is plenty of capital and labour available—the obstacles for the development of capitalist markets are less a technical matter and more a social, cultural and political problem.
1027:
For the capitalist mode of production to emerge as a distinctive mode of production dominating the whole production process of society, many different social, economic, cultural, technical and legal-political conditions had to come together.
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An attempt to fit the histories of different societies into this schema of history on the basis that if they are not socialist, they must be capitalist (or vice versa), or if they are neither, that they must be in transition from one to the
1079:
and realize profits. Equally, the inputs of production are supplied through the market as commodities. The prices of both inputs and outputs are mainly governed by the market laws of supply and demand (and ultimately by the
1384:
according to which
Marxists have a privileged insight into the "march of history"—the doctrine is thought to provide the truth, in advance of real research and experience. Evidence contrary to the doctrine is rejected or
660:
1052:
is “capitalist” if the predominant source of incomes and products being distributed is capitalist activity—even so, this does not yet mean necessarily that the capitalist mode of production is dominant in that society.
1074:), as a whole that provides his "definition" of the capitalist mode of production. Nevertheless, it is possible to summarise the essential defining characteristics of the capitalist mode of production as follows:
757:) means simply "the distinctive way of producing", which could be defined in terms of how it is socially organized and what kinds of technologies and tools are used. Under the capitalist mode of production:
1130:
consisting of unemployed people and various intermediate classes such as the self-employed (small business and farmers) and the “new middle classes” (educated or skilled professionals on higher salaries).
954:: production for profit and accumulation as the implicit purpose of all or most of production, constriction or elimination of production formerly carried out on a common social or private household basis.
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occurs between owners of capital for profits, assets and markets; between owners of capital and workers over wages and conditions; and between workers themselves over employment opportunities and civil
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49:
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863:"Capitalism" as this money-making activity has existed in the shape of merchants and money-lenders who acted as intermediaries between consumers and producers engaging in
888:, capitalism as a mode of production achieves complete domination on a planetary basis and has nothing to overcome but itself, the final (for it, capitalism, viewed as a
1040:
framework promoting commerce, a physical infrastructure making the circulation of goods on a large scale possible, security for private accumulation and so on. In many
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A defining feature of capitalism is the dependency on wage-labor for a large segment of the population; specifically, the working class, that is a segment of the
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771:) who derive its income from the exploitation of the surplus value. Surplus value is a term within the Marxian theory which reveals the workers' unpaid work.
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proper, based on wage-labour and private ownership of the means of production and on industrial technology, began to grow rapidly in
Western Europe from the
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Marx never provided a complete definition of the capitalist mode of production as a short summary, although in his manuscripts he sometimes attempted one.
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thing and partly true observations of inferior and simplistic presentations of
Marxist thought (by those espousing some brand of Marxism). Neither
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framework for commerce, civil society and politics, which specifies public and private rights and duties as well as legitimate property relations.
903:, to the “real subsumption” of production under the power of capital. In what he calls the "specifically capitalist mode of production", both the
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This has the important consequence that the whole organization of the production process is reshaped and reorganized to conform with economic
871:") since the beginnings of civilization. What is specific about the “capitalist mode of production” is that most of the inputs and outputs of
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2005:
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The existence of an elite or ruling class which controls the country, exploiting the working population in the technical
Marxist sense.
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of the means of production: ownership of the means of production by a class of capital owners, either individually, collectively (see
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This idea is based on passages from Marx, where Marx emphasized that capital cannot exist except within a power-relationship between
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of labor must usually be reinvested in production since output growth and accumulation of capital mutually depend on each other.
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and monopolisation of markets and supply; (b) capital accumulation, to acquire productive and non-productive assets; and (c) to
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The overall aim of capitalist production under competitive pressure is (a) to maximise net profit income (or realise a net
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Both the inputs and outputs of production are mainly privately owned, priced goods and services purchased in the market.
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860:", through little more than the freedom of the market, is able to match social production to these needs and desires.
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From an orthodox Marxist perspective, the former is simple ignorance and or purposeful obfuscation of works such as
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Production is carried out for exchange and circulation in the market, aiming to obtain a net profit income from it.
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in order to produce and thus have an income to provide for themselves and their families the necessities of life.
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In this context, Marx refers to a transition from the “formal subsumption”, the formal turning of workers into
1715:
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856:". Contemporary mainstream (bourgeois) economics, particularly that associated with the right, holds that an "
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independently and privately own and trade in means of production, a class of workers compelled to sell their
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847:. It is centered on the process M → M', "making money" and the exchange of value that occurs at that point.
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332:
87:
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A uni-linear view of history, according to which feudalism leads to capitalism and capitalism to socialism.
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1956:
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In general, capitalism as an economic system and mode of production can be summarized by the following:
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for the masses in excess of what they would need to sustain themselves and a complete saturation of
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The capitalist mode of production may exist within societies with differing political systems (e.g.
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1976:
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market of any kind, it is production for use within the feudal social unit and for limited trade.
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and so on) preceded the development of the capitalist mode of production as such. The capitalist
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have argued that capitalist relations of production predate the capitalist mode of production.
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1951:
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Alex Callinicos. "Wage Labour and State Capitalism - A reply to Peter Binns and Mike Haynes".
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1961:
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1986:
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Nicholas Vrousalis. "Capital without Wage-Labour: Marx's Modes of Subsumption Revisited".
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885:
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698:. Private money-making in various forms (renting, banking, merchant trade, production for
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931:) had been completely displaced by the then new industrialism. Some historians, such as
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both the supply of goods and services and their consumption. The larger portion of the
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738:
570:
565:
525:
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1601:
Giladi, Tal Meir (16 January 2024). "The Emergence of Marx's Concept of Subsumption".
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1966:
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908:
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The owners of the means of production (capitalists) constitute the dominant class (
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1146:(negative real growth, i.e. an absolute decline in output). As a corollary, mass
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892:, not for historical development per se) negating of the negation posited by
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Systems of organizing production and distribution within capitalist societies
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2541:
2414:
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2145:
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978:) or through a state that serves the interests of the capitalist class (see
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Means of production which dominate the direct producers as an alien power.
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691:) refers to the systems of organizing production and distribution within
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803:
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and Gérard Duménil, 2008. "Marx's analysis of capitalist production,"
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924:
1198:. Statements consisting only of original research should be removed.
1110:) as much as possible through cutting production costs, increasing
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1111:
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989:: near universality of wage labor, whether so-called or not, with
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2495:
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of labour have been completely refashioned and reshaped in a
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An Introduction to the Three Volumes of Karl Marx's Capital
1005:
from the base reshaping and reorganization described above.
923:-oriented) way—the "old ways of producing" (for example,
1587:
Adam Smith, often mis-attributed in this sense. See the
1566:
The Laws of Motion of the Capitalist Mode of Production
1187:
713:
The capitalist mode of production is characterized by
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Erich Farl. "The Genealogy of State Capitalism". in
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A Contribution to the Critique of Political Economy
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2000:
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1265:"Capitalist mode of production" Marxist theory
1256:. Unsourced material may be challenged and removed.
960:: production for exchange on a market; to maximize
110:"Capitalist mode of production" Marxist theory
101:. Unsourced material may be challenged and removed.
1070:(1867–1894; sometimes known by its German title,
2440:Political power grows out of the barrel of a gun
1466:Perspectives on capitalism by school of thought
2507:
1776:
654:
8:
2755:Economic and Philosophic Manuscripts of 1844
2770:Outlines of a Critique of Political Economy
1064:In a sense, it is Marx's three-volume work
456:Outlines of a Critique of Political Economy
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2500:
2492:
1783:
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251:
202:. Please do not remove this message until
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1720:(paperback ed.). London: OpenMute.
1542:Encyclopedia of Marxism at marxism.org.
1525:The New Palgrave Dictionary of Economics
710:, later extending to most of the world.
198:Relevant discussion may be found on the
1512:
725:by the owning class for the purpose of
263:
1757:. Charles Sackrey and Geoff Schneider.
2882:Marxian critique of political economy
1603:Archiv fĂĽr Geschichte der Philosophie
1591:section for what Smith actually said.
681:and subsequent Marxian analyses, the
7:
1701:Western Marxism and the Soviet Union
1254:adding citations to reliable sources
99:adding citations to reliable sources
2669:Abstract labour and concrete labour
1791:Marxist phraseology and terminology
1703:. New York. Brill Publishers. 2007.
1689:(London, IMG). Vol. 2. No. 1. 1973.
1352:which does not hold or have power.
25:
2041:Commanding heights of the economy
1907:Primitive accumulation of capital
1682:. second series. 12. Spring 1979.
1471:Primitive accumulation of capital
461:Time, Labor and Social Domination
45:This article has multiple issues.
2455:Revolution is not a dinner party
2425:Whole-process people's democracy
1363:which governs the extraction of
1348:The existence of a wage-earning
1345:Generalized commodity production
1230:
1168:
275:
177:
75:
34:
2795:Who cooked Adam Smith's dinner?
2352:Uneven and combined development
1867:Dictatorship of the proletariat
1241:needs additional citations for
1160:State capitalist interpretation
86:needs additional citations for
53:or discuss these issues on the
2704:Socially necessary labour time
2121:Socially necessary labour time
1694:"Capital as a Social Relation"
1407:Critique of Dialectical Reason
1133:The finance of the capitalist
834:Distinguishing characteristics
338:Socially necessary labour time
1:
2674:Capitalist mode of production
2523:Critique of political economy
2481:People's Multiparty Democracy
2031:Capitalist mode of production
2016:Critique of political economy
1847:Capitalist mode of production
1501:Critique of political economy
943:Summary of basic distinctions
683:capitalist mode of production
679:critique of political economy
611:Critique of political economy
450:Critique of Political Economy
313:Critique of political economy
293:Capitalist mode of production
2395:Continuous revolution theory
2116:Socialist mode of production
1972:Workers of the world, unite!
1947:Socialist mode of production
1912:Proletarian internationalism
1481:Socialist mode of production
1371:Heterodox views and polemics
1057:Defining structural criteria
408:Falling profit-rate tendency
308:Concrete and abstract labour
2780:Critique of Economic Reason
2111:Simple commodity production
1708:Civilization and Capitalism
1194:the claims made and adding
907:worked with and the social
865:simple commodity production
204:conditions to do so are met
2913:
2380:Antagonistic contradiction
2327:Degenerated workers' state
1714:Barbrook, Richard (2006).
1420:the so-called unequal and
806:) and alongside different
571:New School Economic Review
434:Economic and Philosophical
403:Technological unemployment
2224:People's democratic state
2209:General line of the party
1932:Revolutionary spontaneity
1486:State monopoly capitalism
1090:The corollary of that is
867:(hence the reference to "
2760:The Mirror of Production
2274:Socialism in one country
2234:Political rehabilitation
1673:Economics and Philosophy
1335:International Socialists
2826:Criticism of capitalism
2785:Discourse on Inequality
2450:Revolutionary base area
2410:Marxism–Leninism–Maoism
2322:Deformed workers' state
2101:Relations of production
2021:Accumulation of capital
2001:Sociology and economics
1817:Base and superstructure
1797:Philosophy and politics
1699:Marcel van der Linden.
1696:(New Palgrave article).
1680:International Socialism
1675:. Vol. 34. No. 3. 2018.
1476:Relations of production
1436:Base and superstructure
1417:dialectical materialism
1048:A society, a region or
733:and—at least as far as
333:Relations of production
2269:Socialist accumulation
1917:Proletarian revolution
1872:Historical materialism
1615:10.1515/agph-2022-0074
1572:July 22, 2011, at the
1128:reserve army of labour
881:rationality as bounded
581:Historical Materialism
398:Historical materialism
2877:Factors of production
2836:Economic anthropology
2562:Erik Johan Stagnelius
2189:Democratic centralism
1832:Bourgeois nationalism
1446:History of capitalism
708:Industrial Revolution
448:A Contribution to the
363:Wertabspaltungskritik
18:Production for profit
2897:Production economics
2846:Mainstream economics
2740:The Right to Be Lazy
2430:One Divides Into Two
2337:Permanent revolution
2294:Democracy in Marxism
2254:Revolutionary terror
2051:Commodity production
2036:Crisis of capitalism
1942:Scientific socialism
1837:Bourgeois revolution
1717:The Class of the New
1250:improve this article
958:Commodity production
952:Capital accumulation
818:, an agrarian-based
737:are concerned—being
727:capital accumulation
95:improve this article
2816:Classical economics
2811:Assume a can opener
2643:Claus Peter Ortlieb
2618:Hans-Georg Backhaus
2347:Transitional demand
2214:National liberation
2199:Enemy of the people
2081:Means of production
1842:Bourgeois socialism
1827:Bourgeois democracy
1496:Types of capitalism
1451:Immiseration thesis
869:merchant capitalism
719:means of production
591:Capital & Class
576:Crisis and Critique
536:Hans-Georg Backhaus
516:Claus Peter Ortlieb
436:Manuscripts of 1844
318:Means of production
266:Marxian critique of
191:of this article is
2790:The Accursed Share
2460:Social imperialism
2284:Social imperialism
2156:Worker cooperative
2096:Production for use
2086:Mode of production
1937:Revolutionary wave
1902:Petite bourgeoisie
1812:Barracks communism
1754:The Marxist System
1638:"Capital Volume I"
1461:Natural capitalism
1422:uneven development
1179:possibly contains
937:Nicholas Vrousalis
929:cottage industries
854:production for use
828:post-industrialism
824:industrial society
751:mode of production
704:mode of production
586:Socialist register
323:Mode of production
2887:Marxian economics
2859:
2858:
2608:Neue Marx-LektĂĽre
2571:20th–21st-century
2530:18th–19th-century
2489:
2488:
2390:Capitalist roader
2342:Social revolution
2184:Central Committee
2091:Productive forces
2056:Dominant ideology
1952:Super-imperialism
1887:Lumpenproletariat
1727:978-0-9550664-7-4
1706:Fernand Braudel.
1665:Theory as History
1589:Wealth of Nations
1456:Marxian economics
1441:Heroic capitalism
1326:
1325:
1318:
1300:
1224:
1223:
1216:
1181:original research
1014:Marx argued that
972:Private ownership
808:social structures
788:liberal democracy
731:wage-based labour
715:private ownership
671:
670:
621:Marxist sociology
546:Hans-JĂĽrgen Krahl
328:Productive forces
268:political economy
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16:(Redirected from
2904:
2831:Critique of work
2648:Georges Bataille
2628:Michael Heinrich
2578:Jean Baudrillard
2537:Friedrich Engels
2516:
2509:
2502:
2493:
2465:Struggle session
2385:Anti-revisionism
2362:World revolution
2289:Soviet democracy
2174:Anti-revisionism
2166:Marxist–Leninist
2136:Subject of labor
2066:Free association
2009:
1992:World revolution
1982:Workers' control
1977:Workers' council
1962:Two-stage theory
1805:
1785:
1778:
1771:
1762:
1742:
1740:
1739:
1730:. Archived from
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1331:state capitalism
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1036:for a living, a
980:state capitalism
894:orthodox Marxism
890:Hegelian process
792:social democracy
755:Produktionsweise
721:, extraction of
688:Produktionsweise
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486:Friedrich Engels
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1857:Commodification
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1662:Jairus Banaji.
1650:
1648:Further reading
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2709:Valorisation
2699:Law of value
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2435:People's war
2357:United front
2299:United front
2106:Ruling class
2071:Law of value
2050:
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1967:Wage slavery
1957:Theoretician
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1736:. Retrieved
1732:the original
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1544:"Capitalism"
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1329:theories of
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1081:law of value
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2745:Das Kapital
2633:Mark Fisher
2623:Robert Kurz
2552:John Ruskin
2445:Revisionism
2332:French Turn
2304:Vanguardism
2259:Secretariat
2249:Revisionism
2076:Materialism
1927:Revisionism
1877:Imperialism
1822:Bourgeoisie
1653:Karl Marx.
1385:overlooked.
1382:historicism
1108:superprofit
1100:Competition
1092:wage labour
1072:Das Kapital
1042:Third World
1034:labor power
985:Primacy of
976:corporation
964:instead of
838:Capitalist
776:proletariat
769:bourgeoisie
753:" (German:
735:commodities
511:Mark Fisher
506:Robert Kurz
442:Das Kapital
393:Imperialism
348:Wage labour
2872:Capitalism
2866:Categories
2750:Grundrisse
2714:Value-form
2593:André Gorz
2583:Guy Debord
2314:Trotskyist
2194:Dual power
1862:Dialectics
1738:2018-11-19
1656:Grundrisse
1413:historical
1380:A kind of
1276:newspapers
1188:improve it
1144:depression
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913:commercial
905:technology
873:production
693:capitalist
428:Grundrisse
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358:Wertkritik
212:March 2015
189:neutrality
121:newspapers
50:improve it
2841:Economics
2735:Sarvodaya
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2415:Mass line
2405:Four Olds
2229:Politburo
2219:New class
2146:Use value
2046:Commodity
1623:0003-9101
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1192:verifying
1116:privatize
1021:commodity
995:bourgeois
966:use-value
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845:commodity
812:tribalism
696:societies
685:(German:
675:Karl Marx
616:Economics
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303:Commodity
200:talk page
56:talk page
2662:Concepts
1570:Archived
1530:Abstract
1429:See also
822:, urban
810:such as
745:Synopsis
559:Journals
286:Concepts
257:a series
255:Part of
193:disputed
2804:Related
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1802:Marxist
1550:July 8,
1290:scholar
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1103:rights.
1067:Capital
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2151:Value
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1508:Notes
1297:JSTOR
1283:books
1151:85%).
1135:state
1112:sales
1038:legal
531:NML:
421:Works
142:JSTOR
128:books
2204:Foco
1722:ISBN
1619:ISSN
1552:2011
1269:news
935:and
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