Max Weber and Karl Marx: Comparison of Capitalist Development

Karl Marx identified several factors that promoted the advancement of capitalism. To begin with, capitalism was promoted by the exploitation of workers. Exploitation enabled capitalists to generate surplus value, which was necessary for the growth of capitalism. Increasing absolute or relative surplus value allowed capitalists to increase their profits and market share. One of the ways of increasing absolute surplus value involved exploiting workers by extending the working day without increasing wages. This led to an increase in profits. According to Marx, capitalists increased their relative surplus-value by employing timesaving production procedures. This included specialization of labor and adoption of assembly lines to increase the number of products that were produced within a given period. The resulting reduction in production costs enabled capitalists to sell at low prices, thereby overcoming competition.

Marx argued that technology was also a primary force that advanced capitalism. Using sophisticated machines and advanced technologies in a production led to increased productivity. As a result, capitalists earned high profits, which motivated them to increase production. A free market was also necessary for the advancement of capitalism. Marx asserted that market barriers had to be removed to allow capitalists to organize the means of production in the most efficient and profitable manner. Commodity fetishism also promoted capitalism. For instance, advertisements motivated individuals to purchase goods that they did not need, thereby allowing capitalists to increase their profits.

Max Weber considered the Protestant ethic and the spirit of capitalism to be the primary forces that advanced capitalism. He argued that every individual had a calling, which motivated him or her to adopt an ascetic lifestyle. The calling gave worldly activities such as producing goods a religious character. Achieving economic success was considered virtuous and a sign of salvation. Thus, individuals focused on enhancing efficiency in their businesses in order to make high profits. According to Weber, ascetic Protestantism led to the emergence of a new economic mentality, which was referred to as rational capitalism. This new attitude towards economic success provided the impetus for the rapid development of capitalism.