Are There Wages In Marxism? Unpacking Economic Structures

The Marxist theory of wages can be understood more comprehensively by building upon the foundational principles of Ricardo’s theory of value, which posits that equilibrium prices are directly linked to labor values. In this context, it is essential to differentiate between two key concepts: labor and labor-power. Labor refers to the actual act of working, while labor-power represents an individual’s capacity or ability to work. According to Marx’s mature theory, wages are primarily determined by the price of labor-power, not the price of labor itself. In other words, the wage represents the value assigned to one unit of an individual’s labor capacity, highlighting a key distinction in Marx’s analysis of wages.

In a Marxist society, the role and existence of money differ significantly from conventional capitalist systems. According to Karl Marx, money emerges as a product of a commodity-based economy, where goods and services are exchanged through a market-driven system. In this context, the value of products is determined by the amount of socially necessary labor time invested in their production. However, when transitioning to a non-commodity economy as envisioned by Marx, a fundamental shift occurs. In such a society, general human labor ceases to express itself as a source of value. Consequently, there is no inherent contradiction between use value (the practical utility of a product), value (measured in terms of labor), concrete labor (specific tasks), abstract labor (labor as a measure of value), social labor (collective production), and individual labor (personal contributions). In essence, within a Marxist framework, this absence of contradictions and the reorganization of economic principles lead to the absence of traditional money as we know it in capitalist systems. Therefore, in a Marxist society, money, as we understand it today, ceases to exist. This shift represents a foundational aspect of Marxist theory, aimed at restructuring economic relationships and priorities. [Date: 13th December 2019 is not relevant and has been omitted as it is not essential to the explanation.]

Is Money a Tenet of Marxism?

In Marxism, the concept of money serves a fundamental role, with Karl Marx emphasizing its primary function as a measure of value. This role is paramount both in terms of its ontological significance (the nature of money) and its chronological development within economic systems. To elucidate, Marx posits that money first emerges as a measure of value before taking on other functions like being a medium of exchange. This idea can be illustrated through historical examples, such as references to money as a measure in early writings, like Homer’s mention of oxen as a unit of measure. In this context, it is important to understand that in barter systems, where direct exchange of goods occurs, each commodity essentially functions as its own medium of exchange, and money as we recognize it today evolves from this initial stage.