Karl Marx argued that capitalism would eventually collapse due to its own internal contradictions. He believed that capitalism, driven by the pursuit of profit and the exploitation of labor, would create increasing economic crises, deepen class struggles, and ultimately be replaced by socialism and, later, communism.
Key Ideas on the End of Capitalism:
- Crisis of Overproduction – Marx stated that capitalism's drive for profit leads to excessive production, which outpaces demand, causing economic crises, unemployment, and instability.
- Falling Rate of Profit – As businesses compete and invest in technology to reduce labor costs, the overall profit rate declines, making capitalism unsustainable.
- Class Struggle – The growing divide between the bourgeoisie (capitalist class) and the proletariat (working class) would lead to class consciousness and revolutionary movements.
- Inevitable Revolution – Marx predicted that the working class would overthrow the capitalist system and establish a socialist society where production is controlled collectively.
- Transition to Communism – After socialism, where the state controls the economy, society would evolve into communism, a stateless, classless system based on common ownership.
Marx didn’t give a specific timeline but believed capitalism contained the seeds of its own destruction. While his predictions about capitalism's collapse haven’t come true as he envisioned, his critique remains influential in discussions about inequality, labor rights, and economic crises.