Crisis in the economic theories of Marxism
The debate over the economic dilemmas of Marxism came to the forefront after several articles by Conrad Schmidt in 1897 and…it is a well-established fact that in a whole series of branches of industry small and medium-sized undertakings appear quite capable of existing beside the large industries.Bernstein also attempted to demonstrate empirically that huge firms were not as profitable as small-scale ones, arguing that all sizes of companies could survive well together. Bernstein challenged orthodox Marxist theories that capitalism was doomed to fail, noting that capitalism was increasingly overcoming a number of its frailties “such as unemployment, overproduction, and the inequitable distribution of wealth.” Moreover, Bernstein claimed that the apparent stabilization of capitalism was not temporary but a permanent feature. Bernstein contended that the income of the proletariat was rising, which directly contradicted Marx's conjecture that workers would become poorer due to capitalism's insoluble contradictions, oppression of workers and oppressed class mold, and profit-based structure. Due to his empirical approach, Bernstein took the position that economic prosperity under capitalism was causing a reduction in class conflict as well as increasing the differentiation of the working class. Bernstein predicted that class antagonism would eventually diminish in a capitalist society whereas socialism would evolve peacefully under parliamentary and reformist responses. One of the first serious detractors of Bernstein's reformist and optimistic stance towards capitalism was
What would be the point of striving to achieve political power if it only led to a ‘colossal defeat’? What would be the point of opposing capitalism if we could not manage without it? Instead we would have to encourage capitalist development, since, if it is not interrupted by general trade crises, it must eventually lead to the prosperity of all!There were a number of other economic dilemmas facing orthodox Marxism in the late 1890s. David Ramsey Steele, a former member of the
The workers were becoming richer, the working class was fragmented into sections with different interests, technological advance was accelerating rather than meeting a roadblock, the 'rate of profit In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment. Historical cost ''vs.'' market ...' was not falling, the number of wealthy investors ('magnates of capital') was not falling but increasing, industrial concentration was not increasing, and in all countries the workers were putting their country above their class.
Bernstein and the ''Precondition of Socialism''
In his 1899 ''Precondition of Socialism'', Bernstein treated the theoretical parts of Marxist doctrine as “not scientific but doctrinaire,” therefore rejecting the fundamental principle of scientific socialism. Instead, Bernstein evoked Kantian liberal ideals that promoted ethical and moral arguments in favor of socialism. As Bernstein highlighted under the concept ofBreakdown controversy
The crisis of Marxism encompassed the “Breakdown Controversy” which was an argument amongConclusions
The consequences that followed the crisis of Marxism led to the birth of revisionist Marxism, which subsequently resulted in the emergence of theReferences