History of ECON 4 Essay Example | Topics and Well Written Essays - 500 words

History of ECON 4 - Essay Example Social wealth comes from the production of economic goods in a capitalist economy (Heilbroner, 168). Organization of economic activities leads to division of labor among individuals. The division of labor and the economic organization meets the material needs of the society, which creates social wealth. Max argues that production is done for producing exchange value, but the benefits do not last. Max argues that capitalist economies buy labor with money because production is an important part of the development. Labor power is a special kind of commodity because it involves the special kind of abilities of human beings. Labor is a special kind of commodity because individuals should be willing to sell their labor power. Max argues that individuals and employers should meet in the marketplace as equals. Employers should be able to put his employees in the position of a buyer’s disposal. It indicates that the laborer distances him or her from labor to be able to claim rights it rights. Labor is a special kind of commodity because individuals should not sell the labor he has created (Heilbroner, 169). The individual should sell the labor power because they do not own the means of production. Max argues that some people own the money while some individuals own labor power. It is the reason labor power is a special kind of commodity. Labor power exists in the capacity of a living person. According to Karl Max, interpretation of the increase in the population is in the context of a capitalistic fiscal system. He argues that a capitalist takes a huge role in the economic sense. He feels that offer capitalist labor relative trivial share of labor productivity. Capitalist introduce more machinery in the society to increase the value of surplus of labor efficiency. According to Max introduction of machinery, creates a surplus of individuals due to lack of jobs to create balance in the economy (Heilbroner, 170). The population is a result