Most people agree that we need to improve our economic system somehow. Yet were also

often keen to dismiss the ideas of capitalism’s most famous and ambitious critic, Karl Marx.

This isn’t very surprising. In practice,

his political and economic ideas have been used to design disastrously planned economies

and nasty dictatorships.

Nevertheless, we shouldn’t reject Marx too quickly. We ought to see him as a guide whose

diagnosis of Capitalism’s ills helps us navigate towards a more promising future.

Capitalism is going to have be reformed - and Marx’s analyse are going to be part of any

answer. Marx was born in 1818 in Trier, Germany.

Soon he became involved with the Communist

party, a tiny group of intellectuals advocating for the overthrow of the class system and

the abolition of private property. He worked as a journalist and had to flee Germany, eventually

settling in London.

Marx wrote an enormous number of books and articles, sometimes with his friend Friedrich Engels

Mostly, Marx wrote about Capitalism, the type of economy that dominates the western world.

It was, in his day, still getting going, and Marx was one of its most intelligent and perceptive critics.

These were some of the problems he identified with it:

Modern work isalienatedOne of Marx’s greatest insights is that

work can be one of the sources of our greatest joys.

But in order to be fulfilled at work, Marx wrote that workers needto see themselves

in the objects they have created’. Think of the person who built this chair:

it is straightforward, strong, honest and elegant

It’s an example of how, at its best, labour offers us a chance to externalise

what’s good inside us. But this is increasingly rare in the modern world.

Part of the problem is that modern work is incredibly specialised. Specialised jobs make

the modern economy highly efficient, but they also mean that it is seldom possible for any

one worker to derive a sense of the genuine contribution they might be making to the real

needs of humanity. Marx argued that modern work leads to

alienation = Entfremdung

in other words, a feeling of disconnection between what you do all day and who you feel

you really are and what you think you ideally be able to contribute to existence.

Modern work is insecure Capitalism makes the human being utterly expendable;

just one factor among others in the forces of production that can ruthlessly be let go

the minute that costs rise or savings can be made through technology. And yet, as Marx

knew, deep inside of us, we don’t want to be arbitrarily let go, we are terrified of

being abandoned. Communism isn’t just an economic theory.

Understood emotionally, it expresses a deep-seated longing that we always have a place in the

world’s heart, that we will not be cast out.

Workers get paid little while capitalists get rich

This is perhaps the most obvious qualm Marx had with Capitalism. In particular, he believed

that capitalists shrunk the wages of the labourers as much as possible in order to skim off a

wide profit margin.

He called this primitive accumulation = ursprüngliche Akkumulation

Whereas capitalists see profit as a reward for ingenuity and technological talent, Marx

was far more damning. Profit is simply theft, and what you are stealing is the talent and

hard work of your work force.

However much one dresses up the fundamentals, Marx insists that at its crudest, capitalism

means paying a worker one price for doing something that can be sold for another, much

higher one. Profit is a fancy term for exploitation.

Capitalism is very unstable

Marx proposed that capitalist systems are characterised by series of crises. Every crisis

is dressed up by capitalists as being somehow freakish and rare and soon to be the last one. Far from it, argued Marx,

crises are endemic to capitalism - and theyre caused by something very odd. The fact that

were able to produce too much - far more than anyone needs to consume.

Capitalist crises are crises of abundance, rather than - as in the past - crises of shortage.

Our factories and systems are so efficient, we could give everyone on this planet a car,

a house, access to a decent school and hospital.

That’s what so enraged Marx and made him hopeful too. Few of us need to work, because

the modern economy is so productive.

But rather than seeing this need not to work as the freedom it is, we complain about it

masochistically and describe it by a pejorative wordunemployment.” We should call it freedom.

There’s so much unemployment for a good and deeply admirable reason: because were

so good at making things efficiently. Were not all needed at the coal face.

But in that case, we should - thought Marx - make leisure admirable. We should redistribute

the wealth of the massive corporations that make so much surplus money and give it to


This is, in its own way, as beautiful a dream as Jesus’s promise of heaven; but a good

deal more realistic sounding.

Capitalism is bad for capitalists

Marx did not think capitalists were evil. For example, he was acutely aware of the sorrows

and secret agonies that lay behind bourgeois marriage.

Marx argued that marriage was actually an extension of business, and that the bourgeois

family was fraught with tension, oppression, and resentment, with people staying together

not for love but for financial reasons.

Marx believed that the capitalist system forces everyone to put economic interests at the

heart of their lives, so that they can no longer know deep, honest relationships. He

called this psychological tendency

commodity fetishism = Warenfetischismus

because it makes us value things that have no objective value.

He wanted people to be freed from financial constraint so that they could - at last - start

to make sensible, healthy choices in their relationships.

The 20th century feminist answer to the oppression of women has been to argue that women should

be able to go out to work. Marx’s answer was more subtle. This feminist insistence

merely perpetuates human slavery. The point isn’t that women should imitate the sufferings

of their male colleagues,it’s that men and women should have the permanent option to

enjoy leisure.

Why don’t we all think a bit more like marx?

An important aspect of Marx’s work is that he proposes that there is an insidious, subtle

way in which the economic system colours the sort of ideas that we ending up having.

The economy generates what Marx termed anideology”.

A capitalist society is one where most people, rich and poor, believe all sorts of things

that are really just value judgements that relate back to the economic system: that a

person who doesn’t work is worthless, that leisure (beyond a few weeks a year) is sinful,

that more belongings will make us happier and that worthwhile things (and people) will

invariably make money.

In short, one of the biggest evils of Capitalism is not that there are corrupt people at the

topthis is true in any human hierarchybut that capitalist ideas teach all of us to be

anxious, competitive, conformist, and politically complacent.

Marx didn’t only outline what was wrong capitalism: we also get glimpses of what Marx

wanted the ideal utopian future to be like.

In his Communist Manifesto he describes a world without private property or inherited wealth,

with a steeply graduated income tax, centralised control of the banking, communication, and

transport industries, and free public education. Marx also expected that communist society

would allow people to develop lots of different sides of their natures:

in communist societyit is possible for me to do one thing today and another tomorrow,

to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticise after

dinner, just as I have a mind, without ever becoming hunter, fisherman, herdsman or critic.”

After Marx moved to London he was supported by his friend and intellectual partner Friedrich

Engels, a wealthy man whose father owned a cotton plant in Manchester. Engels covered

Marx’s debts and made sure his works were published. Capitalism paid for Communism.

The two men even wrote each other adoring poetry.

Marx was not a well-regarded or popular intellectual in his day.

Respectable, conventional people of Marx’s

day would have laughed at the idea that his ideas could remake the world. Yet just a few

decades later they did: his writings became the keystone for some of the most important

ideological movements of the 20th century.

But Marx was like a brilliant doctor in the early days of medicine. He could recognise

the nature of the disease, although he had no idea how to go about curing it.

At this point in history, we should all be Marxists in the sense of agreeing with his

diagnosis of our troubles. But we need to go out and find the cures that will really

work. As Marx himself declared, and we deeply agree:

Philosophers until now have only interpreted

the world in various ways. The point, however, is to change it.