This research examines the Marxist economic system. In this examination, the interrelation between micro and macro economics is considered. Modern economics is divided into the two major areas of macroeconomics and microeconomics. The difference between the two branches of economics lies in the level of aggregation at which economic phenomena are studied. Macroeconomics is primarily concerned with the study of relationships between broad economic aggregates, such as (1) national income, (2) aggregate saving and investment, (3) the quantity of money, (4) employment, (5) consumer spending, and (6) many other high level aggregations (Rees, 1984).
Microeconomics, by contrast, is concerned with the study of individual decision units (1) consumers, (2) households, and (3) firms, and with the ways in which their decisions interrelate to determine (4) the relative prices of goods and factors of production, and (5) the quantities of these items which will be bought and sold (Rees, 1984). The ultimate goal of microeconomics is to explain the mechanism by which the total amount of resources possessed by a society is allocated among alternative uses and users, and competing uses and users.
MARXIST ECONOMICS
Marxian economic thought is theoretically close to classical economics. Classical economics, after all, was the economics of the age in which Marx developed his own theories. Marx brought four major insights to economic thought through his theories. The first was that an economy was not characterized by static equilibrium (Eagly, 1974). This same insight later led Keynes to an understanding that policies based upon classical economic theory would not necessarily extricate the world's industrial economies from the depression of the early 1930s (Hansen, 1953).
A second major insight brought to economic thought by Marx was that value and growth was not inextricably associated with ag...