I am reading a book written by Karl Marx called "Das Kapital". In the past century there has been much debate on Marx’s comments and theory about capitalism. Marxism is based on the belief that capitalism will inevitably fail in any society. He believed that capitalists (business owners) exploited there workers by awarding low wages to maintain a high profit. Furthermore, as competition increases, capitalists are forced to invest in expensive machinery to increase productivity. Consequently, they lower their workers’ wages to maintain their profit margin. Marx believed the workers would eventually revolt due to the decrease in wages.
Today we have proven that Marx’s theory is wrong. America’s version of capitalism has not only survived, but is thriving due to certain factors. These include: the ability to buy stock in companies, formation of unions, government regulated minimum wages, and the development of a middle class. How have these factors helped capitalism survive?
A web page about Karl Marx can be found at http://clsuk.tripod.com/daskapital/