Marxism Theory: Overview, Effects, and Examples

Marxism is a social and economic theory created by _____ Karl Max, Marxism defends the intervention of the State and eliminates private property of the means of production and social classes, and imposes a centralized economic planning, to achieve a desired equality amongst the population.

Marxism inspired the Bolshevik revolution, through its foundations it contributed to the passage of Russia from a feudal economy to a developed industrial economy.

In the era of industrial capitalism, many errors and injustices took place, for that reason, it was a necessity to solve problems such as overproduction, crisis, and the deplorable working conditions of the period.

Marxist theory gained momentum in its application in the first four decades of the nineteenth century, in times of development of capitalism, of the industrial revolution, reaching as far as England, France, and Germany.

Along with the Marxists, guided by this theory formulated by Karl Marx, there were other promoters, but with certain differences, these were the associationists, among whom Robert Owen stands out, and also anarchists led by J Proudhon.

Characteristics of Marxist theory

Geographical and social aspects

Union of Soviet Socialist Republics.
Division and specialization of work .
Diversity of professions and trades.
There are no social classes.

Economic activity

Seeks to satisfy collective needs without interest in obtaining profits.
Centralized economic amplification to satisfy collective needs.

Property and work

There is no private property.
The workers receive bonuses, or money to satisfy basic needs.

Effects of Marxism / Marxist theory

The main materialization and / or consequences of Marxist theory are the following:

Abolition of private property and social classes.
Centralized planning of the economy, personal freedom is left aside and focused on a global organization that seeks to satisfy the most important or basic needs of all equally.
Production has a social and collective goal, and not a goal to obtain profit.
Labor is considered an economic and social process and highlights the division of labor in the industrialization process.
The Soviet Union has influenced the spread and establishment of communism in Eastern Europe, China, even in Latin America and other countries of the world.
Division into two large zones of geopolitical influence: The socialist world and the capitalist world.

Criticism of Marxism

Criticisms of Marxism come from different ideologies, both from the left and from the right. The main criticism of Marxism is that the limitation of individual freedom goes against human nature, since according to classical liberalism, specifically Adam Smith, individual actions and the personal interest of each person, creates an economic equilibrium that results in greater prosperity.

The elimination of private property limits the field of action, and creativity of individuals, in a free enterprise economy, firms are the center of the economic flow, and in Marxism or communism there is no private enterprise.

Everything is in the hands of the State, the production of goods and services is affected and the exchange of factors of production is profoundly affected or does not exist, the possibility of obtaining payment according to merit and also the different goods and services that are available to people.

The real results of the application of Marxism in different countries of the world are another source of criticism, because it has caused a negative equality, an equality where the quality of life of all people decreases and social inequalities are accentuated.

Another criticism of Marxism is how it highlights the class struggle, which generates division and resentment amongst citizens.