4 Marxist perspectives on economic growth and income distribution

Similar to some ideas of the ‘trickle-down’ economists you encountered earlier, also, some classical economists, such as David Ricardo or Karl Marx, believed that a higher profit share – more money for capitalists – meant that more capital was available that could be reinvested into the economy, which would lead to economic growth. Yet, Karl Marx especially was highly critical of the ways in which capitalism functions. Marxist economists are of the opinion that capitalism cannot be ‘tamed’ as it is unjust to its core, creates winners and losers, and needs to be replaced with an alternative economic production system that is less prone to conflict. From their perspective, economic growth rests on the contentious interactions between workers and capitalists, and amongst capitalists.

Figure 7: Capitalism creates winners and losers

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The image shows a man standing in front of a wall with graffiti. The man, who appears to be of South Asian descent, is leaning casually against the wall with one leg crossed over the other. He is wearing a bright pink, long-sleeved shirt tucked into dark pants, along with black shoes. His expression is calm, and he is looking slightly down. The wall behind him is covered with large, bold, red graffiti text that reads: "EVERY MORNING I WAKE UP ON THE WRONG SIDE OF CAPITALISM." The text spans the width and height of the wall, painted with a rough, uneven brushstroke style. The wall itself is textured and off-white, and the letters are unevenly spaced, giving the impression that the graffiti was painted hastily. The scene takes place outdoors, with a few tree branches and leaves visible at the top of the image.

Figure 7: Capitalism creates winners and losers