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Karl Marx was a Germen sociologist, historian, and economist. His basic ideas, know as Marxism form the foundation of Socialist and Communist, an economic and government system characterized by citizens holding all property and goods in common movements throughout the world. Karl Marx was born on May 5, 1818 in Trier, where he received a classical education. Karl attended the Friedrich Wilhelm Gymnasium in Trier for five years, graduating in 1835 at age of seventeen. Karl became very skillful in French and Latin, both of which he learned to read and write fluently. In October 1835, Marx enrolled in Bonn University in Bonn, Germany, where he attended courses primarily in laws, as it was his father’s desire that he become a lawyer. Marxian economics refers to economic theories on the functioning of capitalism based on the works of Karl Marx. His writing inspired generations of economic thinkers, and in his name entire societies were transformed. First of all, Karl Marx’s labor theory of value asserts that the value of an object is solely a result of the labor expended to produce it. According to this theory, the more labor or labor time that goes into an object, the more it is worth. For example, if a hat usually takes twice as long to produce as a pair of sock, then hats are twice as valuable as socks. In the long run, the competitive price of hats will be twice the price of socks. The labor theory of value states that the value of a commodity is determined by the amount of labor that went into producing. Capitalists take advantage of their power to set wages and working hours to extract the greatest amount of labor from workers at the lowest possible cost, selling the product of the workers at the higher price than the capitalists paid for them. The labor theory is important in Marx’s work not because it gives special insight into the nature of

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