This paper examines the renewed relevance of Marxist theory in the wake of recurring global economic crises, particularly since 2008. Drawing on the foundational ideas of Marx and Engels — including class struggle, historical materialism, and the inevitable decline of capitalism — the paper traces how these concepts apply to contemporary realities. It focuses on China as a case study, analyzing the contradictions between its status as the world's second-largest economy and its low Human Development Index ranking, as well as documented harsh labor conditions in major manufacturing facilities. The paper also considers Rosa Luxemburg's contribution to socialist thought and the broader global shift toward skepticism about unchecked capitalism.
The paper demonstrates the technique of theoretical application: it first establishes a framework (Marxist theory and its three intellectual sources) and then tests that framework against a specific contemporary case (China's economy and labor market). This approach — building the analytical lens before using it — is characteristic of political science and social theory writing at the undergraduate level.
The paper opens with a broad framing of post-2008 economic disillusionment, then builds the theoretical scaffolding of Marxism through its intellectual origins and core doctrines. It transitions into applied analysis via China's labor conditions and HDI ranking, incorporates Rosa Luxemburg's perspective on socialist transformation, and closes with a global observation about capitalism's faltering legitimacy. The structure moves logically from theory to evidence to broader implication.
The economic crisis that struck the international community and world economies has, since 2008, determined a slow and almost invisible shift in the doctrinal preferences of a growing number of people when it comes to deciding on the right economic approach to follow in order to prevent such crises from recurring. Although there have been numerous attempts to demonstrate the benefits of capitalism, the economic crises occurring on a cyclical basis since the 1970s have served as counterarguments against the efficiency of capitalism and free-market economies as we know them today. As a result, more and more people — scholars, professors, and even politicians — advocate a more moderate approach to capitalism that incorporates aspects of apparently long-forgotten economic doctrines such as Marxism.
Marxism in its purest form is not the solution; yet, it offers justifications for what is now seen as a struggle between low-paid workers and global market demand, on the one hand, and the lack of satisfaction between big and small economies, on the other. As Stuart Jeffries noted in a 2012 article in The Guardian: "The proletariat, far from burying capitalism, are keeping it on life support. Overworked, underpaid workers ostensibly liberated by the largest socialist revolution in history (China's) are driven to the brink of suicide to keep those in the west playing with their iPads. Chinese money bankrolls an otherwise bankrupt America" (Jeffries, 2012). In order to better understand the social phenomenon currently underway, it is important to consider several theoretical aspects of Marxism and to identify them in the present social environment.
The promoters of Marxism — German philosophers Karl Marx and Friedrich Engels — are considered to have offered one of the most controversial political perspectives on the idea of the state, both in general and in particular terms. The analysis of Marxist theory is rather complex because it is viewed simultaneously as the most radical and threatening critique of capitalism and liberal democracy, and as the official ideology of governments engaged in the revolutionary struggle against bourgeois regimes (Dunleavy and O'Leary, 1987). A theoretical analysis of Marxist thought holds that the ideas Marxism proposed had a three-layered perspective. According to Dunleavy and O'Leary, the essence of Marxist ideas lies in the combination of three sets of beliefs (1987).
First, there were the ideas of British economists such as Adam Smith, David Ricardo, and James Mill. Marx interpreted these and concluded that the capitalist process of production represents a source of inequality for workers, who are exploited by their employers. Through further analysis, both philosophers came to view the fall of capitalism and the disintegration of its economic system as inevitable.
Second, German philosophy was used by both Marx and Engels to develop the doctrine of historical materialism, which proposed that human societies undergo recurrent transformations occurring in a violent manner within old societies governed by capitalist rule. This conflict arises between the working class, which strives to rise above its minimal condition, and the dominant class, which limits that desire for progress. This is the foundation of the idea of class struggle. As Dunleavy and O'Leary conclude, according to the emerging Marxist thought, "the engine of history is always the revolutionary change and the class struggle" (1987, p. 191).
Third, the French Revolution served as an additional source of inspiration for Marx and Engels, who viewed the overthrow of the monarchic regime as the result of rebellion by the disadvantaged segments of French society. They considered that the growing tensions between the large number of peasants, industrial workers, and other groups deprived of their right to property — at the expense of the bourgeoisie — had eventually resulted in popular uprising.
These three ideas formed the cornerstone of what would be called scientific socialism. However, in order to reach this stage of development — which Marx and Engels considered the ultimate goal — regimes had to abandon the capitalist system and embrace a new economic and political conception: the communist one. Socialism was, in this sense, a transitional stage. As noted in the literature, "Marx and Engels theorized in general terms about the transition between capitalism and communism. They reasoned that between capitalist and communist society, there would be 'the period of the revolutionary transformation of the one into the other.' They also contended that the social order during this period would be 'a communist society, not as it has developed on its own foundations, but on the contrary, as it has emerged from capitalist society.' They referred to this transitional social order between capitalism and communism as the 'inferior stage of communism' and frequently as socialism" (Harris, 1988). It can therefore be concluded that communism was the ultimate goal, and that in this quest, societies would first develop a socialist order.
To this end, the Manifesto of the Communist Party outlined precisely the ideas that would lead the world toward socialism and ultimately communist rule. Marx and Engels advocated in 1848 in London for unity among all oppressed peoples, arguing that "our epoch, the epoch of the bourgeoisie, … has simplified class antagonisms. Society as a whole is more and more splitting up into two great hostile camps, into two great classes directly facing each other — bourgeoisie and proletariat" (Marx and Engels, n.d.). This articulation of class struggle would become one of the most defining features of communist doctrine.
Miller, Alex. "Socialism or Barbarism?" 2007.
United Nations Development Programme. Human Development Index: China 2012. UNDP, 2012.
The Daily Mail. "You Are Not Allowed to Commit Suicide: Workers in Chinese iPad Factories Forced to Sign Pledges." 1 May 2011, online edition.
You’re 50% through this paper. Sign up to read the remaining 3 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.