Karl Marx:Principle of Infinite Capital Accumulation

In 1867 Marx,after half a year of published Ricardo's ''Principles' ,when he published Capital's 1st volume,economic and social truths has deeply changed:The question is whether agriculture will now feed an increasing population or the question of whether the price of the soil will increase or not,rather it became a matter of understanding the dynamics of industrial capitalism as a whole.

            The most stunning fact of this period,is the misery of the industrial proletariat.Despite growing in the economy at the same time, due to migration from rural to urban, which is caused by the increase in population and agricultural productivity,workers began to accumulate in slums in cities.Prices were low,working times were long.A new urban misery,is visible,more shocking and from some angles,was more miserable than, which was common in Ancient Regime.Inspired by the timid arrangement of 1841 Le Tableau de L'état physique et moral des ouvriers employés dans les manufactures (The Table of the Physical and Moral Status of Workers in Manufactures)  published by Dr.Villerme in France and in England.Depicting the same terrible truth which published by Engels in 1845 Die Lage der arbeitenden Klasse in England(The status of the working class in England) too.

             In fact,the historical truths that we have today,however when we came in the second period of to19th century,it showed to us there is a evident increase purchasing power.From 1800-1810 years to 1850-1860 years,the salaries of workers remained very low.Like France that we can see it in England to,long recession in wages, in this period with became remarkable with the gain speed of economic growth.In every case the labor factor is stagnant in income,increase in capital and industrial profits-in 1840-1850 time period- it is a fact that everyone is aware of.The first Socialist and Communist emergence of movements took place in this context.The basic question asked is fairly simple:After half a century of growth,if the living conditions of the masses are still miserable and beside prohibition of 8 years old children working in factories,if there is nothing the development of in industry,all these techniques progress,all these labor, all these migrantions. What does it do? It is clear that the current economic and political system has gone bankrupt.Everyone wondering the other question:What can we say such a system that in long-term?

               Marx knew the answer.In 1848,on the eve of the ''Spring of People'' , to begin with ''A ghost wanders in Europe,the ghost of communism.''  effective and short text, Das Kommunistischen Manifest (Communist Manifesto) was published.This text,ending with the revolutionary vision that was famous as the beginning:so the development of the modern industry,based on the fact that the bourgeoisie produces its products and products based on property acquired.It takes away from the bourgeoisie.The bourgeoisie brings its own end to everything first.The victory of the proletariat in its end was equally inevitable.

           Over the next twenty years,Marx will justify this result,he will establish the capitalism and its collapse with making a scientific analysis,he really spent his time to write voluminous analysis.His work couldn't reach to comlete: 1st-Volume of Capital's was published in 1867,however Marx couldn't complete the other two following volumes,he was died in 1883.Engels-his friend- published these two volumes after his death, bringing together the sometimes inexplicable parts of manuscripts left behind Marx.

         Like Ricardo, Marx established his own works on the analysis of capitalist system own logic contradictions too.At the same time (The Secret Hand of Adam Smith,Each supply creates its own demand of Jean-Baptiste Say.....in line with the law,the market regulate itself.) Without offering bourgeois economists and real scientific work on economic processes only that the workers think they deserve to criticize the misery,aimed to stand in a different place than the utopians.To summarize it,Marx based on the model Ricardo has developed on the price of the capital and on the principle of scarcity,at first Marx said capital doesn't based on soil,it does industrial and in a world where the principle could accumulate indefinitely, he further advance it with an analysis of the dynamics of the stock.As a result,his results,we can named as ''Infinite Accumulation Principle'' The capital has a relentless tendency to accumulate without accepting any natural limits and to concentrate in the hands of very few people.It was the starting point of Marx's foresight of doomsday at the end of capitalism:Either the capital's return rate will tend to decrease(it stops the accumulation process or between in owner of capital it could lead to a violent conflict) or the share of the national capital will increase unlimitedly(all the workers in the world will unite and rebel in the end.) Reaching a socio-economic or political balance did not seem possible in both cases.

             At the end of the 19th century the prices started to increase:Stubbornly,The inequality remained on same degree,but from some angles to The World War 1 it was increased,improvement in purchasing power was spreaded to everyone,this one changed that status from radical.No doubt communist revolution was happened,however from the most undeveloped country of europe;Russia, where the industrial revolution has barely begunLike before from self authors, Marx had also overlooked the possibility that the technical progress was continuous and that the productivity increased steadily too; in the increases in productivity,the accumulation of capital and  processes of condensation, it is a power which will be able to balanced it to certain degree.Marx,owned estimates do not have statistical data to make it more accurate.It was probably the victim of finalizing the results in 1848, before they entered research that could confirm them.Clearly,Marx was writing in a great political environment.Which in many cases led to him,difficult to avoid or shortcut results.It is precisely from this point that the theoretical discourse as far as possible is based on complete historical sources;but it can not be said that Marx did this to the extent possible.

           Despite all this,we will see that Marxist analysis makes correct determinations in many respects.Marx started with a real question and tried to find an answer with the possibilities:The Infinite Accumulation Principle put forward by Marx is also important not only in the 19th century
it also important for analyzing of the present 21st century too.If the increase in population and productivity is low, then the accumulated wealth is also of considerable importance,it destroys social stability when if this accumulation becomes excessive.In other words, a weak growth, fails to properly balance the Marxist infinite accumulation principle: the resulting outcome is a balance that will not be outdone, even if it is not like the doomsday as Marx predicted.Accumulation stops at one point, but it may be at an excessively high or at destabilizing point.We will see that the strong increase in the total value of the special wealth, measured as the national income since the 1970-1980 period, in all of the rich countries, especially in Europe and Japan, directly reflects this rationale.

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David Ricardo:The Scarcity Principle

From past to present, from the beginning to the end of the 18th century and 19th century, perspectives of economic and social transformations are objectively impressive. From the witness's perspective,, we need to understand that it is traumatic too. In fact, The vast majority of the observers of the time were relatively pessimistic about the sharing of wealth and the long-term evolution of the social structure. This situation, no doubt the most impressive two economists of the 19th century and of a small social group - According to Ricardo they're landowners, According to Marx they're industrial capitalists- to be valid for Ricardo and Marx who foresee that production and income will inevitably take on a growing share.

            In 1817 On the Principles of Political Economy and Taxation; be referred to as ''principles'', The real problem of Ricardo, who published his work, it was the price of soil and the rent of soil changed in long run. There was no statistical source that he could use his hand. However, it didn't prevent him from recognizing Capitalism closely during his lifetime. He grew up in a Portuguese, Jewish family. It seems like he hasn't got any political prejudice. He had been affected by Malthus's model but he developed it. Mostly he was interested in that logical contradiction: When production and population began to increase, the soil was getting much more scarce compared to other commodities. The law of supply and demand indicates that land prices and rents paid to landowners would increase regularly. Over time, the share of landowners in national income will gradually decrease, which will distort the social balance. According to Ricardo, there was only one solution, the taxes on soil rents were to be increased regularly.

             We will see that this wasn't right: The soil has been at high levels for a long time, however as the weight of agriculture in the national income continues to decrease, the values of the soil field, compared to other forms of wealth, has fallen terribly. Ricardo wrote in 1810, It was certainly not possible to predict the technical progress and industrial growth that would be of great importance for the rest of the century. Ricardo couldn't imagine a world in which humanity completely gets rid of the pressure on food and agriculture.

           The forecast of the price of soil was still interesting: '' The Scarcity Theory  '', That is mean it has the potential for too much growth of certain prices over a long time. This could have distorted the entire balance of society. A system of price, like organising millions of individuals' activities, has an important role. The problem is, that this system is not provided either a limit or a morality.

          We will make a big mistake if we ignore the importance of this theory while analyzing the global sharing of wealth in the 21st century. Instead of farmland in Ricardo's model, real estate prices in major capitals or putting oil prices, it is enough to convince us. In both cases, the observed trend from the 1970-2010 period or when we look at how the extension of 2010-2100 can be shaped, in the countries themselves and international, Ricardo's model evocation of disaster, significant economic, social and political imbalances, that we can see obviously.

           Actually, in the economy, there is a fairly simple mechanism that this process can balance: The mechanism of Supply and Demand. If a supply of goods is insufficient and if the price is too high, the demand for these goods will decrease, which will cause to make prices down. In other words, if the real estates and oil prices increase,  to make it up for this situation, we should ride a bike or live in a small town, it will suffice. But it can not only be difficult but it can take decades to build such a scheme, during which time real estate and petrol owners will have a very large credit accumulation relative to the rest of the population and they will be able to buy anything that can be bought, including rural areas and bicycles they may have bought it. As usual, we can't think that it will exactly happen.

         But for now,The Mechanism of Supply and Demand, in connection with major changes in certain relative prices, is enough to say that inequality in the distribution of wealth cannot be eliminated from being large-scale and permanent. It is the main point of Ricardo's Scarcity Principle.

     

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