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Reading: The Impact of Engels’ Economic Theory on Socialism and Communism
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informabank.com > Blog > Economic Status > The Impact of Engels’ Economic Theory on Socialism and Communism
Economic Status

The Impact of Engels’ Economic Theory on Socialism and Communism

13 Min Read 80.4k Views

Introduction to Friedrich Engels

Friedrich Engels is one of the leading figures in the history of social and political thought. Born in 1820 in Barmen, Germany, Engels grew up in a wealthy textile industry family and learned business at a young age. Early on, he was attracted to liberal ideas and turned away from his family’s traditional religious beliefs. Engels’ thinking began to develop when he came into contact with radical groups while working at his father’s textile factory in England. There he witnessed firsthand the inequality and suffering of the working class which ultimately made Engels an advocate for social change.

In the course of his wisdom, Engels studied economics and political science, which later made him one of the sharpest critics of capitalism. Apart from that, he also published a number of significant articles such as “The Condition of the Working Class in England” in 1845 which highlighted the terrible conditions of industrial workers in England. This book is one of his works that raises public awareness of the importance of social reform.

Engels was not only known as a theorist but also as a social practitioner, he actively participated in the revolutions of 1848-1849 in various European countries. However, his influence came primarily through his collaboration with Karl Marx which formed the foundation for modern communist theory. Together they developed the materialist dialectics and theory of surplus value that became the basis of Marxist economic thought. Most importantly, through a series of in-depth discussions and collaborative writing, the duo formulated the “Communist Manifesto” in 1848.

The relationship between Engels and Marx proved to be very productive until the end of Marx’s life in 1883. After that, Engels took an important role in editing several volumes of “Das Kapital” and trying to preserve and disseminate his colleague’s ideas. Engels’ influence is not only embedded in political literature, he also made important contributions to the discipline of economics with concepts such as the globalization of markets and the analysis of class structure. Engels’ philosophy of political economy continues to resonate today, offering insights into class dynamics and social struggle that are still relevant to contemporary issues. His writings on the capitalist mode of production, as in “The Origin of the Family, Private Property and the State,” also provide in-depth analysis of the relationship between the economic system and social structure. Engels’ legacy as a philosopher greatly resonated in various directions of development of social and economic theory in the future, making him a figure who not only formed the foundations of socialist thought but also influenced many generations after him to continue the struggle to achieve equality and social justice.

In capitalism, according to Engels, social class divisions emerge which are largely determined by their relationship to the means of production. The bourgeois class (capital owners) obtain their wealth from control over the means of production and the labor they exploit, while the proletariat (working class) sells their labor power to survive without owning the means of production. This class division is the basis for the development of socioeconomic structures in capitalist society, where the bourgeois class dominates the political and economic structure to maintain the status quo.

The conflict between these two classes was recognized by Engels as class struggle. This struggle arises because of the dissatisfaction and structural injustice experienced by the proletariat, the inequality in the distribution of wealth becomes increasingly severe, creating social conditions that support revolutionary change. Engels believed that history was driven by this class conflict and that the accumulated tension would lead to a social transformation in which the proletariat would take over leadership to create a more egalitarian economic system.

Engels and Marx argued that the solution to these problems lay in the elimination of the capitalist system through socialist revolution. They proposed that control over the means of production be exercised by the community of workers as a collective, not bourgeois individuals. In this way, a classless society will be created in which production is aimed at collective needs rather than for personal gain. The main assumption of this socialist vision is that based on planned and centralized production to serve needs, inequality will be eliminated. The new society will be formed on principles opposite to those of capitalism: not competition but solidarity, not exploitation but cooperation. Marx and Engels believed that, through this transformation, there would be emancipation of the working class and, ultimately, all of humanity.

The Impact of Engels’ Economic Theory on Socialism and Communism

Friedrich Engels, who collaborated with Karl Marx, was a central figure in the formation of socialist and communist theory. Their major work together, the “Communist Manifesto,” is a document that underlies much of the ideology of modern socialism and communism. Engels introduced many concepts describing class dynamics, labor exploitation, and ideas about the communalism of production. The economic theory developed by Engels emphasizes the important role of collective ownership of the means of production, which is a core part of the foundations of socialism and communism. This includes the abolition of private classes and the redistribution of wealth to create a more egalitarian society.

The influence of this theory on the labor movement was very significant. As industrialization spread in Europe in the 19th century, many workers experienced oppression in the new factories. Engels’ theory provided a framework for class struggle through workers’ solidarity, encouraging the formation of trade unions and socialist and communist political parties. With its focus on the collective struggle for workers’ rights and opposition to early industrial capitalism, this theory became a voice for the global labor movement.

Internationally, the impact of Engels’ theory was felt through various social revolutions that occurred throughout the world. The Russian Revolution of 1917 is one of the most striking examples, in which the Bolsheviks overthrew the tsarist government and tried to build a society based on communist principles as promoted by Marx and Engels. It also inspired similar revolutions in other countries such as China and Cuba, which sought to emulate the socialist or communist model in various forms.

Engels not only helped define the concepts of political theory but also provided activists with the tools to critique their own conditions and work toward radical social transformation. Nevertheless, the implementation of these ideas has historically had varying results in different countries, with some creating authoritarian systems under the name of socialism or communism. However, it cannot be denied that the economic theory developed by Engels has instilled an alternative view of the structure of society and still continues to influence contemporary political movements. Although controversial, Engels’ theory continues to be discussed and adapted to answer social and economic problems in new contexts. Amid global challenges such as economic inequality and the climate crisis, ideas about collective ownership and shared responsibility may still be relevant for shaping a more just future.

Critical Analysis of Engels’ Economic Theory

In critically analyzing the economic theory put forward by Friedrich Engels, especially its long-term influence on modern economics, we must understand that his ideas often correlate with those of Karl Marx, and together they form the foundation for Marxist economic theory. Such impact evaluations include observations of various economic systems that claim inspiration from the principles proposed by Engels, including the redistribution of wealth and the role of the state in regulating production. Although the ideas of social utopianism have been largely eroded over time, some elements such as social welfare and state participation in the economy remain relevant and can be found in modern economic practice.

As far as the comparison between Engels’ predictions and contemporary economic reality is concerned, we see mixed perceptions. Engels predicted that capitalism would collapse due to its own internal contradictions, which would lead to a proletarian revolution. The representativeness of these predictions in reality is complex. While some aspects can be seen through periodic economic crises and increasing income inequality, modern capitalism has demonstrated resilience with its adaptability and evolution through regulatory assistance and policy interventions. This reflects a contemporary economic reality that is far more nuanced than Engels might have anticipated.

The debate regarding the relevance of Engels’ theories in the current socio-economic context is still wide open. Although certain aspects of his predictions have not been completely proven correct, the essence of his critical thinking about the relations between classes and the social consequences of an uncontrolled economic system is still very important. This relevance is evidenced through contemporary discussions of income inequality, social inequality, and debates regarding the sustainability of neoliberal growth models.

Finally, although many criticize or even reject Engels’ main ideas especially regarding the socialist revolution and the abolition of private property, his ideological impact in stimulating discussion and critical thinking on social and economic structures cannot be ignored. We can see how his theory still triggers reflection on how the modern economy should be organized and institutionalized to serve the needs of the wider community, not just a few individuals or groups. In this context, although perhaps not fully adopted, Engels’ theories still make a significant contribution to contemporary economic and social discourse.

The following is a summary of Friedrich Engels’ economic theory:

1. Historical Materialism: Engels viewed human history as a class struggle based on relations of production. According to him, the economic structure of a society is the main determining factor in its historical development.

2. Criticism of Capitalism: Engels and Marx criticized capitalism as an exploitative economic system where workers are employed by capital owners (capitalists) and are given wages that are disproportionate to the value they produce.

3. Labor Theory of Value: One of the central concepts in Engels’ economic theory is the labor theory of value, which states that the value of a good or service is determined by the amount of labor required to produce it.

4. Role of the State: Engels also considered the role of the state in capitalism, regarding it as a tool to protect the interests of the bourgeois class. According to him, the state functions to ensure the domination of the capitalist class and maintain the status quo.

5. Proletarian Revolution: Engels believed that the only way to end capitalist exploitation was through a proletarian revolution, in which the working class would seize political and economic power from the capitalist class.

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