Frank Li
Karl Marx is cherished in China as the father of communism, but condemned in America (as well as in the West) as a villain for the same reason. However, did you also know that he actually published a lot more on capitalism than on communism?
In my humble opinion, Marx's analysis of capitalism remains most thorough and insightful to date, his works on socialism were primitive, and he was completely wrong on communism. It's time to objectively assess him as a part of History 2.0.
1. Who is Karl Marx?
Karl Marx (5 May 1818 - 14 March 1883) was a German philosopher, economist, historian, political theorist, sociologist, journalist and revolutionary socialist.
Born in Trier to a middle-class family, Marx studied law and Hegelian philosophy. Due to his political publications, Marx became stateless and lived in exile in London, where he continued to develop his thought in collaboration with German thinker Friedrich Engels and publish his writings, researching in the British Museum. His best-known titles are the 1848 pamphlet, The Communist Manifesto, and the three-volume Das Kapital. His political and philosophical thought had enormous influence on subsequent intellectual, economic and political history and his name has been used as an adjective, a noun and a school of social theory.
Marx has been described as one of the most influential figures in human history, and his work has been both lauded and criticised.[11] His work in economics laid the basis for much of the current understanding of labour and its relation to capital, and subsequent economic thought.[12][13][14][15]Many intellectuals, labour unions, artists and political parties worldwide have been influenced by Marx's work, with many modifying or adapting his ideas. Marx is typically cited as one of the principal architects of modern social science.[16][17]
2. Marx's 2 famous books
2.1 What is "The Communist Manifesto"?
The Communist Manifesto (originally Manifesto of the Communist Party) is an 1848 political pamphlet by the German philosophers Karl Marx and Friedrich Engels. Commissioned by the Communist League and originally published in London (in German as Manifest der Kommunistischen Partei) just as the revolutions of 1848 began to erupt, the Manifesto was later recognised as one of the world's most influential political documents. It presents an analytical approach to the class struggle (historical and then-present) and the conflicts of capitalism and the capitalist mode of production, rather than a prediction of communism's potential future forms.
The Communist Manifesto summarises Marx and Engels' theories concerning the nature of society and politics, that in their own words, "The history of all hitherto existing society is the history of class struggles". It also briefly features their ideas for how the capitalist society of the time would eventually be replaced by socialism. Near the end of the Manifesto, the authors call for "forcible overthrow of all existing social conditions", which served as the justification for all communist revolutions around the world.
2.2 What is "Capital"?
Das Kapital, also known as Capital. Critique of Political Economy(German: Das Kapital. Kritik der politischen Okonomie, pronounced [das kapiˈtaːl, kʁiːtɪk deːɐ pɔliːtɪʃən oːkoːnoːmiː]; 1867 - 1883) by Karl Marx is a foundational theoretical text in materialist philosophy, economics and politics.[1] Marx aimed to reveal the economic patterns underpinning the capitalist mode of production, in contrast to classical political economists such as Adam Smith, Jean-Baptiste Say, David Ricardo and John Stuart Mill. Marx did not live to publish the planned second and third parts, but they were both completed from his notes and published after his death by his colleague Friedrich Engels. Capital is the most cited book in the social sciences published before 1950.[2]
2.3 Summary
Two facts about Marx's two books:
"The Manifesto" is merely a pamphlet, while "Capital" is a 3-volume book.
The former was written more than two decades before the latter.
Still wondering how and why Marx did a much better job on capitalism than on communism?
Wonder not - He not only was much older and wiser when he wrote "Capital", but also spent much more effort on it!
In summary, Marx's analysis of capitalism remains most thorough and insightful to date. However, his advocacy of communism (via socialism) as a solution to capitalism was obviously wrong, especially given the history of the past 150 years.
It is for this reason, chiefly, that I argue that Karl Marx was "mostly" correct in view of his published works!
3. Marx's works in a nutshell
The image below summarizes Marx's works in a nutshell: his societal development model goes through several stages, from some early societies (e.g. slavery) to feudalism, to capitalism, to socialism, and finally to communism.
At a very high level, this model is correct.
Two "communists", Lenin and Mao, capitalized on this model more than anybody else. Both eventually failed for the same reason: They jumped from feudalism to socialism via a violent revolution that destroyed capitalism, albeit very primitive in their respective countries. As a result, the USSR was a total disaster, so was China under Mao (1949-1976)!
It's time for "capitalists" to accept this model as well, with a twist in details ...
4. The Loop Theory
The image below highlights my Loop Theory. It simply extends and truncates Marx's model as follows:
Capitalism and socialism are in a loop, requiring balancing from time to time. Socialism, if poorly managed, may set us back to feudalism.
Communism is so far away that it should be ignored as irrelevant.
5. Capitalism and socialism beyond Marx
Let's discuss capitalism and socialism beyond Marx from five perspectives:
What is capitalism?
What is socialism?
The advancement from capitalism to socialism.
The relationship between capitalism and socialism.
Governance.
5.1 What is capitalism?
Capitalism is the best thing ever happened to mankind. Capitalism has not only been feeding more and more people on the globe, but also created unprecedented prosperity around the globe. For example, it was capitalism that propelled the West ahead of China some 200 years ago (What is China, Anyway?), and it is state capitalism that has enabled China to lift more than 600 million people out of abject poverty over the past four decades, with a burgeoning middle class. For more. Read: What is China's State Capitalism, Anyway?
Capitalism, however, has many endemic problems, not the least of which are its business cycles and the recklessness in pursuit of profits by many, if not most, capitalists, exactly as Marx observed in his time - The nature of capitalism remains unchanged over time!
Two grand examples of disasters of laissez faire capitalism:
However, capitalism must not be simply replaced by socialism, as Marx argued. Rather, it should be counter-balanced with socialism.
5.2 What is socialism?
Simply put, socialism is a chief responsibility of a government.
A government conducts socialism in three major ways:
Owning or controlling the means of production, as Marx argued. A contemporary example: the GM bailout. For more, read: GM vs. America?
Taxation, which has become far more prevalent than throughout Marx's era.
Regulations. Theodore Roosevelt started it big time in America one century ago.
5.3 The advancement from capitalism to socialism
Socialism without capitalism first has all but failed (e.g. Cuba and Venezuela).
Marx called for a "proletarian" revolution (or "forcible overthrow of all existing social conditions") to advance from capitalism to socialism, which has proven to be deadly as Lenin and Mao amply proved. Specifically, history since then has shown that
Such a revolution is often unnecessary. For example, many western countries (e.g. France, Sweden, and the U.S.) have become more and more socialistic over the past 100 years, without a contemporary revolution.
A failed socialist country may adopt capitalism without a revolution. The most prominent example: China!
5.4 The relationship between capitalism and socialism
Capitalism and socialism should co-exist in a developed country, with the government balancing between them. For example, while capitalism creates extra-ordinary wealth for the able and lucky folks, socialism provides the less fortunate with a safety net, thus creating and maintaining a "harmonious" society. Note that harmony is a "beautiful" term long-endured throughout Chinese history and culture.
Bottom line: The challenge is to have an effective government balancing between capitalism and socialism, not arguing about just having one without the other.
5.5 Governance
Governance is hard. The image below is worth more than 1,000 words.
Bottom line: America is way behind China in governance, both in theory and in practice! For more, read: The U.S. vs. China: A Great Experiment vs. A Great Civilization!
6. Karl Marx in today's world
Let's focus on two most representative countries as examples: America and China, respectively.
6.1 Karl Marx in America
America is a very confused country (The American Revolution is a Lie!) and Americans are a very confused people (America: Towards a Tyranny of the Majority?). The confusion includes Karl Marx, of course.
First off, to many Americans, socialism and communism are synonyms.
They are not!
Communism, as many Americans know it, such as China under Mao (1949-1976), is terrible - Been there, escaped from it (My American Dream Has Come True!).
Socialism, on the other hand, is a counter-force against capitalism, which alone is disastrously flawed, as discussed earlier in Section 5.1.
Two extreme American attitudes towards socialism:
On the [far] right: Whenever the word "socialism" appears, the right points to Venezuela, Cuba, or even the USSR as the examples of failure, without daring to mention China, "a socialist country with its characteristics", as an overwhelming example of success.
On the [far] left: Bernie Sanders, an openly self-proclaimed socialist, has been hugely popular, especially among the young and the poor.
Secondly, America is, first and foremost, a capitalist country, with extreme pros (e.g. productivity) and cons (e.g. inequality), which Marx identified more than 150 years ago!
So, in order to thoroughly understand capitalism, study Karl Marx, even ahead of Adam Smith, in my opinion! For more, read: Adam Smith vs. Karl Marx.
Finally, beyond capitalism and socialism, Marx was also correct about democracy, its natural progression, at least!
6.2 Karl Marx in China
Marx has had his ups and downs in China since 1949, when the CPC gained the control of China. It's now on the uptick again for one main reason: the CPC is looking for a theoretical foundation for its legitimacy. After all, CPC stands for "Communist Party of China".
Yes, governance is hard, even for China, the longest continuous civilization in human history!
Unfortunately, China recently removed the term limit for the Chinese Presidency. Two basic questions and answers:
Is it a set-back for China? Yes!
Is it a big set-back for China? No!
Why not?
In summary, China's new fanfare for Karl Marx will continue. Aside from the need for legitimacy, the CPC is confronted with many problems of capitalism, from inequality to massively inherited wealth for the "spoiled" generations. Sounds familiar in America? On the other hand, the legitimacy issue will be lessened over time, because democracy, the major competitor against China's political system, is collapsing on its own weight. For more, read: America: Towards a Tyranny of the Majority?
6.3 Back to America
Socialism is on the rise ...
Watch the video below. Most of the issues they raised are valid, but they have no real solution for America - They are just radical social critics!
For the most accurate diagnosis of America, as well as the best solution, read my last book: American Democracy - Why is it failing & how to fix it?
7. Discussion
Most human beings are limited by their times. Karl Marx was no exception.
Marx was a radical social critic of his time. Outstandingly, his analysis of capitalism, the most successful political and economic system of his time, remains most thorough and insightful to date.
However, on the solution part, Marx has proven to be totally inadequate, just like many other social critics. Specifically,
His imagination of socialism as a replacement of capitalism was mostly wrong. Instead, capitalism and socialism should co-exist in a loop relationship.
His fantasy of communism as the ideal human society was totally unrealistic, if not completely wrong.
In contrast, China's Deng Xiaoping has far exceeded Marx in "solution", with two key differences: Deng's "real" (vs. Marx's "fake") solution and Deng's "peaceful" (vs. Marx's "violent") solution.
Still wondering why Deng is regarded as the greatest peaceful transformational leader in human history? Read: What is China's State Capitalism, Anyway?
Why contrasting Marx with Deng here? Two main reasons:
Both are very important today, not only to America, but also to the world.
While Marx, "one of the most influential figures in human history" (Wikipedia - Karl Marx), has been mostly mis-understood and under-recognized in America, Deng remains unknown to most Americans.
Now, do not confuse Marx with Marxism, which are extensions of Marx's works, self-proclaimed or legitimate. This article is focused on Marx's works, although my Loop theory may be considered a new extension of Marxism - I do not care, either way.
Finally, note: "Correctly Assessing Karl Marx" was the original title of this article. But then, who is going to read it? Having a provocative title is the key to catching eye balls these days!
8. Closing
On capitalism, study Karl Marx! Three perspectives:
Study Karl Marx ahead of Adam Smith! For more, read: Adam Smith vs. Karl Marx.
"Free market" is a lie. For more, read: What is 'Free Market', Anyway?
"Free trade" is a lie. For more, read: Free Trade and China and Free Trade and The U.S.
On socialism, understand Marx's inadequacy. Study China, instead! For more, read: What is China's State Capitalism, Anyway?
On communism, ignore it, as it's irrelevant - Nobody has ever really had it (e.g. China under Mao was really feudalism, with Mao being the last Emperor, not communism per se), and nobody will, in the next 1,000 years, at least!
Now, please sit back and enjoy the long video below. Socialism is on the rise all over the developed world ...
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