The Forum > Article Comments > Andrew Bolt simply does not understand Marxism > Comments
Andrew Bolt simply does not understand Marxism : Comments
By Tristan Ewins, published 24/2/2014In response to Andrew: You're entitled to your opinion as a conservative to oppose Marxism, or leftism in general. But get your facts straight.
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You are right that Marx predicted that real wages would fall, but entirely wrong to say that this actually happened. The link to the ILO that you provide shows exactly the opposite of what you claim – real wages have risen in the past 10 years, despite the worst recession since the 1930s. It is true that the labour share of GDP has fallen in many developed countries in recent years (hence labour productivity has risen faster than real wages, as the chart shows), and in some countries real wages have fallen. But the chart shows that, across the developed countries as a whole, growth in real GDP has more than offset this effect to allow real growth in wages.
In the longer term, real wages have grown enormously since the industrial revolution, and are vastly higher than in Marx’s day. This paper gives a long-term perspective on real wage growth in the UK. It finds that a craftsman’s daily wage increased in real terms by more than 600% between the 1850s and 2000s. It makes for fascinating reading:
http://piketty.pse.ens.fr/files/ClarkJPE2005.pdf
(p.52)
Marx also predicted that crises in capitalism would become more severe and more frequent. Again, the opposite has happened. Even the GFC looks minor compared to the economic crises of the nineteenth century, and the GFC was the worst recession in the developed economies for 60 years.
Tristan reminds us that even old Marxism saw state ownership as temporary, and indeed Engels famously predicted the “withering away of the state”. I suppose it depends on whether one believes this will actually happen under a Communist regime. I think it unlikely.