Why Capitalism's Collapse? Marx's Economic and Social Theory

This essay delves into Karl Marx's theory on the inevitable collapse of capitalism, examining his analysis of the economic and social structures that he believed would lead to its demise. Marx posited that capitalism, characterized by the exploitation of the proletariat (working class) by the bourgeoisie (capitalist class), was inherently unstable due to its internal contradictions. He argued that the pursuit of profit and the accumulation of capital would lead to increasing inequality, class conflict, and ultimately, revolution. The essay explores Marx's concept of surplus value, the alienation of labor, and the role of class consciousness in the proletariat's struggle against the capitalist system. It further discusses the stages of societal development according to Marx, from ancient socialism to feudalism, and finally to communism, which he believed would emerge after the collapse of capitalism. The essay concludes by highlighting the factors that Marx believed would contribute to capitalism's decline, including economic stagnation, the suppression of labor, and the rising awareness of class exploitation, ultimately leading to a classless society.

Why did Marx believe that capitalism is doomed to
collapse, and how did he think this collapse would
occur?
Karl Max was a German Philosopher and sociologist who blossomed in a range of pitches
and whose view points were heavily powerful and still remembered in the present day. When
he grew up, his stream was interest was economics due to which that is why he found interest
in European industrial working class and hence i his most sought after researches have been
in connection with the same as an activist. As per is views, the entire can be divided into two
road categories i.e. the bourgeoisie which are basically in simple terms known as capitalists
and the proletariat which basically comprised of those people who worked for these
capitalists and hence were exploited. He found out that such a differentiation of the society
led to a clear cut exploitation of the working class by the owners and that too in an unfair
manner. Hence it was noticed that the workers were working for longer hours and yet were
not paid sufficiently (Collins, 2008). This is what led to the collapse of the capitalism.
Due to the above mentioned difference, Marx formulated the theory of capitalism. Capitalism
connotes a financial organization which is taken care by the profit makers. As and when the
industrial growth took place, the belief of Karl Marx that capitalism was not fair and one
sided grew stronger. As per Marx there would be a series of events which he thought would
occur wherein it would lead to the demise of all these differences and the ultimate result
would be positive, one in favour of mankind. The very first stage is that of ancient socialism
which would eventually come to an end and would further give rise to a civilization
comprising of slaves. This societal structure basically consisted of people who were slaves
and there owners who considered them not as humans but as objects and a property owned by
them. However the said stage also did not last long and it further led to the development of
feudalism wherein some people were born with a silver spoon i.e. with a tag of royalty from
birth and were noble individuals comprising of kings and lords (Marxists.org. 1983). The last
stage is named ‘communism’ which is basically the evolution of all the above stages. Here
the proletariats would not accept capitalism and would hence revolt against the same via the
starting workers revolution. This had ultimately driven various nations where such a
differentiation was in existence hence ensuring that there lies no difference between workers
and the owners.

The capitalism would ultimately collapse when a conflict between societies would emerge
and there would be a classless society. Marx believed that the main reason behind the said
conflict and coercion to some extent was religion and many a times people became slaves and
capitalism grew due to the false rules laid down by various religions and people being asked
to follow since being a part of the same. In the present day scenario, very few individuals are
of the belief that in the economic wisdom of any of the ideologists, capitalism would exist.
With open alternatives of bourgeois philosophy struggling, it is not a mishap that simulated-
Marxist theories are again being talked about (Barnieh, 2015).
Marx had believed that capitalism would come to an end soon since it stood on a basic
incongruity. The same is deeply dug in the institution of private property and ownership
which ultimately gave birth to a system of fights and contradictions amongst classes which
was irreparable. Thereby capitalism is essentially a system of class exploitation which is
basically pro bourgeoisie who are the main owners of the prolific wealth. The second class
i.e. proletariat are thereby very categorically being taken advantage of via the mining of
‘surplus value’ as denoted by Marx. Because the proletariats could not match with capitalism,
hence Karl Marx believed that capitalism system was ultimately doomed i..e would have to
collapse soon. It was a revolt by these slaves and those exploited that would ensure the end of
capitalism ultimately. The same would happen as and when the proletariats would be
educated and that they would finally understand the fact they were being exploited and hence
should become conscious about their class. When they would understand that they should a
class of their own rather than they being categorised in a class by someone else, it is then that
capitalism would come to an end. The proletariat would be enlightened about the class
consciousness by progressive immiseration, the artefact of the intensifying and predictable
disaster of the capitalist system. Hence one of the most powerful ways which would ensure
the collapse of capitalism was revolution which would happen only once there is somebody
who would make these slaves aware about the importance of equality and freedom. Thus a
proper guidance, education and leader would ensure that the rule of capitalism ultimately
comes to an end (Sakwa, 2013).
It can rightly be said that Karl Marx was ultimately correct with the fact that capitalism
would not last forever. Another very logical way for the demise of capitalism was the fact
that one cannot just keep on shifting the income from the labour class to the capitalists
without having any extra capacity and a lack of overall demand. This is what had happened
ultimately. People were of the opinion that the markets were working but in actual the same

had become dead and defunct. The people can be logical. The organisation and the entity in
order to survive and live can definitely cut on their labour costs but they forget the fact that
this labour cost of the firm is at the end of the day, income and consumption of someone else.
Hence this cycle was not balanced due to which the process became self-destructive in
nature.
Last but not the least, capitalism fails to deliver results during periods of stagnancy in the
market as those with a huge amount of capital fail to d not show any interest in putting in
their money in building factories or hiring people as they find that the time is not right to
make considerable profits. Thereby finally after some years of such stagnancy, capitalism has
to face the decline (Sustar, 2011).
Thus on a summarising note, it is understood that Karl Marx’s theory was right that
capitalism would decline soon as once people are aware of the kind of undue advantage being
taken of them by the owners, they would all try to revolt and rise above the present condition.
Further if the labour calss is not paid well then it would somehow affect the demand of the
capitalist sometime at least in future which would also be detrimental to the life of capitalism.
Thus due to all these methods mentioned, capitalism finally had to face death.

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