Karl Marks is an outstanding personality in the history of economic science. His works on the economics of capitalism laid foundation to the development of separate philosophical stream – Marxian Economics. It is important to differentiate Marxian economics from Marxism, as the latter one is the theory of political and social science. Marx was the first to discuss and identify the role of proletarian revolution as the basis for development of capitalism.
One of the major works ever written by Marx is The Capital. The author worked on this book for more than ten years overall and the entire version of the work was only published after his death. The Marxian Economics is based on Marx’s perception and analysis of the works and studies prepared by his predecessors and opponents, such as Adam Smith and David Ricardo. The Capital is often considered as a response to them, in particular to the Wealth of Nations by Adam Smith. While both works agreed on fundamental role of capital and production capabilities in the economic relationships, they had fundamentally different views on some of the elements of labor relations.
The theory of Marxian economy is concentrated on the value of labor and compensation for the necessary work. Additionally, Marx introduces the theory of commodity fetishism that is put in the basis of many studies and economic theories developed much later in the history. Marxian theory is using dialectics in the methodology of its analysis and argumentation that creates a lot of opposition from the supporters of synergetic theory.
Modern economics has fully adopted some of the core attributes that Marx gave to the role of commodities. Two of them, however, play the distinguishing role in determining economic relationships in closed economics: commodities use-value and commodity value. Role of Marx in the economic history is impossible to underestimate and Marxian Economics is one of the strongest and most influential economic streams that has been developed up to now.