CHINA - Marxist macroeconomics claims that in any historical epoch, the means of economic production and exchange of goods lay the foundation of every event thereafter. Karl Marx, the founder of Marxian economics, concludes that the roots of an economic structure, alone, explain the entire history and politics not only of a nation, but of mankind. He places blame on the rich, “bourgeoisie”, as the group responsible for the oppression of the lower class and for the tiers that divide those of different economic status.

His writing establishes ways to remove inequality, further reasoning a need to remove all barriers that contribute to diversity among individuals. Marx establishes a sameness that antagonizes human nature. Furthermore, Marxist macroeconomic theory is compelling due to its depiction of a “utopian” economic structure; however, when put in action, it fails repeatedly.

Marxian economics is defined as a school of economic thought based on the roles of labor and development in the macro-economy. It was founded upon principles laid out in two bodies of work, The Communist Manifesto and Das Kapital. Albeit the content of Marx and Engel’s writing is alluring, it is flawed. If executed, the entire economy would never generate any revenue because everyone would make the same regardless of their amount of work. This is evident as both supply and demand remain constant when the income of an entire population remains constant.

Marxian economics also claims: in order for the production of goods to occur, labor is needed, therefore the value of a good must accommodate both the materials needed to produce it and the manufacturer. Once again, an even distribution of wealth is justified and Marx argues: the manufacturing of goods costs too much to generate more revenue for those who provide more labor. This argument fails to understand that a low GDP is the result of an even distribution of wealth, hence the inability for communist societies to pay manufacturers for their services. His argument remains paradoxical as he claims the poor economy is the reason those who work harder cannot make more, but then claims the structure of an economy must never establish a difference in wealth among its people. 

Historically, Marxian principles were practiced first in the Soviet Union following the October Revolution, around 1848. At this time, in The Communist Manifesto, Marx and Engels called for a revolt against capitalism by saying:” Workers of the World Unite”, a message that drew in many, rapidly. Soon after, Vladimir Lenin and the Bolksheviks seized power over Russia, jump starting the first society structured after Marxian ideals. As a result, the czar’s officials were executed and prisoner-of-war labor camps were established. These extreme exertions of power, and lack of consequences following, are reflective of a society with no given higher power.  

Another example of a failing communist society is China. Presently, China remains a communist country, with roots in 1921, modeled after the Russian Revolution. During World War II, the support of communism in China grew exponentially and nationalists were dictated by communists. 

In 1997, Hong Kong, which was known as a British colony, returned to Chinese control, but with it in writing that “current social and economic systems” and “lifestyle” in Hong Kong would remain the same for 50 years. Legally, Hong Kong is supposed to continue operating under a capitalist economy; thereby allowing rights to speech, press, assembly, and religious beliefs among residents until at least 2047. According to this, the Chinese government is violating their own Sino-British Joint declaration. This is just one example of how communist leaders tend to abuse their power, as they can always override their citizens. 

Protests in Hong Kong began to emerge in 2019 when a proposed bill stated it would allow local authorities to “detain and extradite” fugitive offenders that are wanted in areas that Hong Kong does not have extradition agreements with. Protests arose out of fear that there would be a legalized kidnapping and fear for the future after 2047 when the Sino-British Joint declaration expires. 

In the Communist Manifesto, Marx and Engels argue that intellectual property is also a product of society, therefore, according to this school of economic thought, privacy is almost non-existent. There are myriad issues with privacy violations and ethical concerns among the citizens of communist societies regarding technology. For instance, anything that a Chinese citizen does on a software platform is open for the government to view. 

Ultimately, Marxian ideas of total government control and an equal distribution of wealth in order to combat oppression, cause more oppression. He depicts a world where those who work harder make the same as those who work less. Marxian macroeconomic theory is also oblivious to the need for economic growth, and when applied, it is impossible for such to occur. Moreover, in every society where Marx’s principles have been applied, the people have rebelled. It is evident in instances like these, Marxian macroeconomics does not and will not ever work. 

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