Marxist socialism

Karl Marx
Karl Marx was a economist known for his critique of capitalism
In his book Capital in 1867, Marx used labour theory of value to argue against
capitalism

Critique means a detailed analysis or assessment of something

Capitalism refers to an economic system in which a society's means of production are

held by private individuals or organizations, not the government, and where products,
prices, and the distribution of goods are determined mainly by competition in a free
market.

Theory used in explanation:

Labor Theory of Value: The value of the product should be determined by the amount
of labour ( in hours ) used to produce it
Labor Power:
It is the combination of mental and physical capabilities that an individual has.
This labour power can be sold to an employer in exchange for a wage
Subsistence Wage: Minimum wage needed for worker survival.
Surplus Value: Difference between value workers create and their wage (goes to
capitalists)

Simple Explanation:
Key Players:

Workers: Sell their labor power (ability to work) for wages.

Capitalists: Own means of production (capital) and hire workers.

Problem:

Capitalists pay workers only enough to survive (minimum wage).

Workers actually create more value than they're paid for (surplus value). This can be
considered as exploitation of workers
This surplus value makes capitalists richer, not workers.

Real-world Example:
 Factory worker: Works 10 hours, creates $100 of value, but only paid $20
(subsistence wage).
Capitalist: Keeps $80 ($100 - $20) as profit (surplus value)

Prediction:

Competition between capitalists will lead to fewer and fewer big capitalists which will
create monopolies
Workers will unite, overthrow the system
Socialist system (workers own means of production) will emerge.

Impact:

The message was adopted by political movements and socialist regimes were formed,
notably the Soviet Union in 1922.