How to Make Your Money Work for You, According to Karl Marx (Part 1: Purchasing Labour)

How to Make Your Money Work for You, According to Karl Marx (Part 1: Purchasing Labour)

Part 2: Exploiting Labour

Asking “why read Karl Marx” is a legitimate question. It seems strange to believe that Marx, who wrote 150 years ago, could address current economic and political challenges. Certainly, things have changed in the last 150 years. Marx’s Capital, however, remains relevant in part because it’s an attempt to analyze the experience of capital, an experience that shows no signs of abating. Further, in examining capital, Marx inevitably touches on other integral parts of contemporary life such as money, labour, commodities, markets, value, technology, class relations, etc. Capital is connected to all of these things and in reading Marx we come to understand the consequences of our participation in the economic system. He reminds us that using a cell phone or tapping a credit card aren’t inconsequential actions. The rhythm of daily life has a storied history. Our participation in “the way things are,” has consequences for our lives and the lives of those around us. Even if you ultimately disagree with Marx, grappling with his arguments is an illuminating journey.

This summer was my first substantial introduction to Marx, and I wanted to use a series of posts to highlight a few aspects of his thought that have helped me evaluate my participation in the market. The first two posts are guided by one seemingly simple notion: that money can produce more money. How, for example, does an index fund grow in a capitalist economy. In this first post I explore Marx’s basic definition of capital, while the second one looks at capitalism as a social relation between labour and capital — better known as surplus labour. In the third and final part, I aim to evaluate Hannah Arendt’s critique of Marx found in her book, The Human Condition.

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