Capitalism's Contradictions: An Analysis of Marx's Das Kapital

In Karl Marx’s work, Das Kapital, Marx asserts that capitalism is inherently contradictory. This theory stems from Marx’s analysis of the circulation of capital, which shows that capital can be redistributed and shifted amongst capitalists, but cannot grow. Marx supposes that this is contradictory because, while capital in a system cannot increase, capitalists are forced to constantly innovate to compete with other capitalists. This innovation leads to larger-scale and cheaper production, which one might assume would lead to general public being better off. However, since this increased production, which is caused by capitalism, cannot increase capital, prices stay relatively the same, and workers work for the same amount of time. If Marx’s analysis is correct, and further assumptions concerning how workers view the length of their working day are correct, then the proletariat are bound to push to shorten the working day. This push, unguided by an understanding of individually variable necessary labor times, would cause capitalism, as it is now, to fall.

He analyses a system in which A and B have 90 pounds collectively: “A sells wine worth £40 to B, and obtains from him in exchange corn to the value of £50. A has converted his £40 into £50.” (Marx, Capital, Ch. 5) At first glance it would appear as though A has created more money, but rather, he has just made the money shift hands, for “Before the exchange we had £40 worth of wine in the hands of A, and £50 worth of corn in those of B, a total value of £90. After the exchange we have still the same total value of £90.” (Marx, Capital, Ch. 5) Hence, the system circulated value, in the form of currency, but did not create