00:01
Okay, so the marquisian theory of economic development is rooted in the works of karl marx, who provided a comprehensive critique of capitalism and its inherent contradictions.
00:18
So his theory of economic development is centered around the historical materialism concept, which posits that the economic base of society fundamentally shapes and determines the social, political and ideological superstructure of that society.
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Now i'm gonna outline the core elements of the marxism or marxian theory.
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So one is historical materialism.
00:54
So marx proposed that the economic development progresses through historical stages, each characterized by a dominant mode of production, and these these include primitive communism, slavery, feudalism, capitalism, and ultimately the communism.
01:20
And the transition between these stages is driven by internal contradictions and class struggles.
01:28
Second is the role of class struggle.
01:37
So economic development, according to marx, is propelled by the class struggle between the ruling class, which controls the means of production, and the oppressed class, which sells labor.
01:49
This struggle is most pronounced in capitalism between the capitalist class and the working class.
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3.
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Surplus value and exploitation marx introduced the concept of surplus value to explain how capitalists derive profits, and it is the difference between the value produced by labor and the wages paid to labor.
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And this surplus value is appropriated by capitalists, which leads to exploitation and furthering class divisions.
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Fourth is the falling rate of profit and crisis.
02:52
So marx theorized that capitalism inherently leads to a falling rate of profit, overproduction, and recurring economic crisis...