Karl Marx was born a little over 200 years ago in Trier, Germany. After the Fall of the Berlin Wall on the other side of Germany, Marx’ teachings seemed to have become obsolete. But in the beginning of the 21st century, it appears that Marx’ philosophy and some of his economic ideas have remained relevant, and might even be revived.
Nearly 135 years after Marx’ death, history seems to have rendered his ideas and his theories on capitalism, history and philosophy obsolete. One of Marx’ biggest accomplishments in his 1867 magnus opus Das Kapital is that he derives the definition of capitalism from its own presuppositions, by showing that capitalism is the rational and logical realization of a long historical process. Furthermore, he derives the logic of capital from the systematics of this capitalist mode of production and society, thus providing a “philosophical” understanding of economics and the history of economics. Taking Marx’ economic ideas and theories as philosophical ideas on the nature of our economy and modern society still provides valuable insights and teachings.The title of the 2013 book that made Thomas Piketty a famous economist contains an explicit reference to Das Kapital: “Capital in the 21st century”. In this work, Piketty’s central claim is that the rate of return of capital has been higher than the growth rate of the real economy in the long term, and that inequality has therefore been rising structurally. And by showing that inequality is not accidental but an inherent aspect of capitalist societies, Piketty addresses a typically Marxist point. Furthermore, Marx’ analysis of the opposition between the “haves” and the “have-nots” remains as relevant as ever, especially with the return of masters and servants in our gig economy.Although some of Marx’ economic theories – i.e. the idea that labor and capital are perfect substitutes or that the capitalist organization is only a form of rent-seeking with no real value creation – have been proven wrong, Marxism remains alive and kicking for most of the world. China’s Communist Party has adopted “scientific socialism” as its official ideology by adapting it to the Chinese context (“Marxism with Chinese characteristics”). Doing so, the Party legitimizes its rule with reference to Marx’ core idea that alienation and inequality are inherent aspects of capitalist societies, and that only the communist state can lift 800 million out of extreme poverty in a few decades. Extending this idea by stating that the social stratification between those who own and those who do not own the means of production has become global and is ever-increasing for the world’s poorest, an adaptive Marxist ideology or economic model might become attractive for other developing countries. And indeed, Marxism seems to be on the rise again.Furthermore, we are all Marxist in a philosophical sense, as few believe that history is determined by ideals or other “transcendent” motives. Instead, many do hold the “Marxist” view that the way we see and understand the world is primarily a function of our historical, socio-economic conditions. For example, that consumers in “backward” countries will become less religious when they get smartphones and middle-income economies “end their grand narratives” when they become advanced ones.
