Question

Karl Marx predicted which of the following? a. The market system would self-destruct. b. The "haves" would revolt against the "have-nots." c. The wealthy were entitled to profits as their reward for risk taking. d. None of the above.

Short answer

Karl Marx predicted that the market system would self-destruct (a), as he believed capitalism would ultimately collapse and be replaced by socialism due to its inherent contradictions and instabilities.

Step-by-step solution

Understanding Karl Marx's Viewpoints

First, it's important to know that Karl Marx was a 19th-century philosopher, economist, and theorist who developed the fundamental principles of Marxism, which is a critique on capitalism. Marx believed in the class struggle and the eventual collapse of the capitalist system, leading to a more then fair and equal communist society.

Analyzing the Answer Choices

Now, let's analyze each answer choice to determine which one best aligns with Marx's predictions: a. The market system would self-destruct: This statement is in line with Marx's belief that capitalism would eventually collapse due to its inherent contradictions and instabilities. He argued that the market system would create crises and ultimately be replaced by socialism. b. The "haves" would revolt against the "have-nots": Marx argued that the working class (the "have-nots") would revolt against the ruling class (the "haves"), not the other way around. Thus, this statement does not align with his prediction. c. The wealthy were entitled to profits as their reward for risk taking: This statement is more related to capitalist ideology, which Marx criticized. According to Marx, the exploitation of the working class enabled the wealthy to accumulate wealth, and capitalism inherently promoted inequality. d. None of the above: This answer choice indicates that none of the other options represent Marx's predictions.

Selecting the Correct Answer

Based on the analysis of each answer choice and our understanding of Karl Marx's viewpoints, we can conclude that the correct answer is: a. The market system would self-destruct. This statement accurately represents Marx's prediction that capitalism would ultimately collapse due to its inherent instabilities and be replaced by a fairer, more equal, and just system - socialism.

Key concepts

Marxism

Marxism is an economic and social theory based on the ideas of the 19th-century philosopher Karl Marx. It is a critical analysis of capitalism and advocates for a society in which the workers, rather than the capitalists, own the means of production. Marxism envisions an end to the class struggle, which arises from the capitalist mode of production, and the establishment of a classless society.

Key components of Marxism include the labor theory of value, the belief that labor is the source of value, and the critique of the exploitation of workers under capitalism. Marxism posits that capitalism is a stage in the historical progression of economic systems, which would eventually give way to socialism and, finally, to a stateless, classless society known as communism. Marx's predictions about the collapse of capitalism are a cornerstone of this ideology.

Capitalism

Capitalism is an economic system in which private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the general market—often referred to as a 'free market economy.'

Under capitalism, the means of production and distribution are privately or corporately owned, and the operations are funded by profits. This system is characterized by the private ownership of resources, the pursuit of profit, market competition, and limited government intervention in the economy. While capitalism is known for encouraging innovation and individual wealth, critics like Karl Marx highlight its tendency to create economic inequalities and the exploitation of the working class.

Class Struggle

Class struggle refers to the conflict of interests between the different classes of society, especially between the working class (proletariat) and the owning class (bourgeoisie) in a capitalist economy. This concept is central to the theory of Karl Marx, who believed that societal changes result from the conflict between these competing interests.

Marx theorized that the struggle between the proletariat, who only possess their labor power, and the bourgeoisie, who own the means of production, would intensify as workers became increasingly exploited. Ultimately, Marx predicted that this would lead to a workers' revolution, toppling the bourgeoisie and placing control in the hands of the working class, initiating the transition from capitalism to socialism.

Economic Systems

An economic system is a structure for allocating resources and distributing goods and services in a society. It determines the mechanisms for the production, exchange, and consumption of goods and services. Examples include traditional, command, market, and mixed economies.

Capitalism and socialism are two primary types of economic systems that differ in terms of ownership and control of the economy. Capitalism advocates for private control while socialism prefers societal ownership and central planning. Karl Marx's critique of capitalism and his predictions that it would eventually collapse due to internal contradictions laid the foundation for alternative economic systems that sought to address the inequities and instabilities he identified in capitalist societies.