| This question <107|91> overall <86|88> CSM: <81|183-3>. graded B+ |
| Question 167: Do you know of other phenomena in capitalism which seem to be the result of “magic”? |
| [87] CSM: The “magic” within modern capitalist economies can be demonstrated through the degrees of utility in regards to a single commodity. In Marxian economics an individual would have a use value for a personal mode of transportation. Society would require individuals to be independently mobile in cases of transportation to and from a job. In cases where it is necessary to own a car due to the lack of a readily available public transportation system, individuals would obtain a vehicle that can best serve them in relationship to their financial means. Therefore a Marxist would view his or her vehicle more as a necessity rather than a status symbol. |
| In a Capitalist economy the opposite can be observed. It can be argued that capitalist tend to interpret a car as a commodity of wealth rather than a use function. The “magic” presents itself in the form of varying degrees of utility. When a capitalist purchases a vehicle they are satisfying their demand and utility. They have a reliable means of transportation and have a car they like. But, when “the Jones” purchase a newer more expensive vehicle, Capitalists create a new form of demand based on utility rather than necessity. Your car may be fully capable of fulfilling its transportation requirements but it fails to maintain your status within the eyes of the “Jones”. Therefore you as a Capitalist are motivated to purchase a new vehicle to maintain an exterior status of prosperity rather than to satisfy a use value. The magic is present in the individual creating a need where a use value or a demand is not present. |
| Hans: There is no Marxist economics which tells people what to do in a socialist economy. Some Marxists think about how to build socialism, and they have come to the conclusion that there are many different types of socialism. In the best case, the people decide democratically about cars versus mass transportation, and luxury versus investment or preservation of resources, etc. |
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