The Capitalist World Economy and Global Inequality

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TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

CHAPTER 2: LITERATURE REVIEW1

Marxism1

Marxist Economic Theory1

Economic Growth2

Process of Economic Growth2

Capitalism as an Economic System3

Movement towards Capitalism4

Market Capitalism as an Efficient Economic System5

Development Process in Underdeveloped Countries7

Transforming Unjust Economic Practices7

Inequality With Respect To Revenues in Developed Countries8

The United Kingdom: A Case Study in Inequality9

Globalization and Inequality11

The Future of Inequality12

DISSERTATION PLAN13

REFERENCES14

CHAPTER 2: LITERATURE REVIEW

Marxism

Proponents of traditional Marxism, whose work is positivistic, actuarial, historically grounded, and specific, strive for a sense of realism in their scholarship. These critics focus on what we traditionally think of as “economic” concerns, such as the role and function of commodities and money, the transformation of money into capital, and the production of material goods. Moreover, they tend to regard Karl Marx's texts primarily as historically informed economic documents and generally do not consider in depth their allegorical or symbolic potential. For many scholars, Marx's commentary on the Early Modern period has provided seminal insight into the economic system. In the first book of Capital, Marx contends, “the economic structure of capitalistic society has grown out of the economic structure of feudal society” (145). Later, he states that although glimmers of capitalist production occurred as early as the 14th or 15th century, sporadically, in certain towns of the Mediterranean, the capitalistic era dates from the 16th century (Bienefeld, 1994, 31).

Marxist Economic Theory

The theory of Karl Marx is usually called Marxist economic theory and is considered to be very important for any economic system. In his early ages, Karl Marx was more interested in the however it is mainly focussed on the capital aspects of the society. In today's present world, the economic system of major parts of the world has been changed to significant extent and different countries have adopted different economic systems that are usually the capitalist economic system, socialist economic system or the mixture of the two. The economic system that is mainly focussed in the Marxist economic theory is the capitalist economic system that is based on the exchange of money. The economic theory of Karl Marx is also based on the theory of value and the surplus value that occupies central position in the Marx theories. The labour and their division play an important role in the production process that eventually leads to the economic development of the society (Birdsall, 1998, 73).

Economic Growth

The concept of the economic growth is associated with the growth of the Gross Domestic Product of the ...