A sizeable number of people are of the opinion that capitalism is the best model for society. Karl Marx was one of these individuals who opposed fervently on the consequences of capitalism on society and a country. In his philosophical works, Marx detailed the adverse effects of this economic model. In his sociological theories, Marx defines capitalism as the key factor that divides society into classes (Rupert, 2003, p183). These classes are because of their relationship to the various factors of production available in the country (Hoffman n.d, p235).
According to Karl Marx, capitalism thrives on profits derived from the factors of production available. Corporations exploit their laborers’ wages to derive these profits. the corporations cannot be profitable without exploitation of workers (Bacher, 2007, p37).
This conclusion by the Marxists is correct in accordance to the labor theory of value. This theory claims that the value of the product is dependent on the amount of labor put into producing the product (Rupert, 2003, p187). The workers create the value of the product. The returns obtained from the sale of the product are divided into profits, wages and cost of raw materials. This division of the returns favors the cost of raw materials and the profits generated by the corporation (Reiff, 2013, p41). The workers’ wages are neglected and do not reflect the actual value of their input into the finished product.