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Political Ideas: Socialism

The socialist critique of capitalism

  • 3 things to know
  • A2 Unit 2

Overview

Capitalism as socialists describe it, socialist criticism of the wage contract as a free agreement and reserve army of labour.

What you need to know

Answer each one before you reveal it.

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Key term

What is capitalism as socialists describe it?

Evaluation

What is the socialist criticism of the concentration of economic power?

Key term

Why do socialists regard capitalism as exploitative?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is capitalism as socialists describe it?

    Model answer

    Socialists describe capitalism as an economic system in which the means of production are privately owned, goods are produced for sale at a profit, and most people live by selling their labour power to those who own the productive property.

  2. 2

    Why do socialists regard capitalism as exploitative?

    Model answer

    Socialists argue that workers produce more value than they receive in wages and that the difference is taken by the owner, so profit originates in unpaid labour rather than in the owner's own effort.

  3. 3

    What did Karl Marx mean by surplus value?

    Model answer

    Surplus value is the difference between the value a worker's labour creates and the value of the wages paid for it. Marx argued that this difference is the source of profit and therefore that exploitation is built into the wage relationship itself.

  4. 4

    What is meant by alienation?

    Model answer

    Alienation is Marx's term for the condition of workers under capitalism who are separated from the product of their labour, from the act of working, from their own human capacities and from each other, so that work becomes a means of survival rather than self-expression.

  5. 5

    What is the socialist criticism of the wage contract as a free agreement?

    Model answer

    Socialists argue that a worker who owns no productive property must accept employment on whatever terms are available or go without, so the formal freedom of the contract conceals a substantial inequality of bargaining power.

  6. 6

    Why do socialists argue that capitalism produces inequality?

    Model answer

    Socialists argue that profit accumulates in the hands of owners while wages are held down by competition for work, that wealth is inherited across generations, and that those with capital can use it to acquire more, so inequality widens without deliberate correction.

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