Marx's Economic Theories

An interactive visualization of Karl Marx's core economic theories

Labour Theory of Value

Marx's Labour Theory of Value argues that the value of a commodity is determined by the socially necessary labor time required to produce it. This theory explains how surplus value is generated through the exploitation of labor.

Labor Time vs. Value

This scatter plot shows the relationship between labor time and value across different industries. The difference between the value produced (blue) and wages paid (red) represents surplus value (yellow).

United States, 2014 (the release's last year), value added / compensation of employees / hours worked by industry from WIOD's Socio-Economic Accounts (2016 release) via the marxist-ai project, rolled up from 56 ISIC industries into these 10 groups. Note the scale: real industries run to tens of thousands of hours, not the ~100 the hypothetical mode uses.

Historical Trends

This chart shows historical trends in productivity, labor's share of value, and the rate of surplus value. As productivity increases, the rate of surplus value tends to rise while labor's share of value falls.

G20 aggregate, 1950–2023, computed as v/(s+v) and s/v from Penn World Table 11.0 via the marxist-ai project's own reproducible pipeline.

Country Comparison

This chart compares labor's share of value and the rate of surplus value across different countries, showing variations in exploitation rates.

2023, computed the same way from Penn World Table 11.0 via the marxist-ai project.

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Accumulation of Capital

Marx's theory of capital accumulation explains how capitalists must continuously reinvest profits into expanding production, leading to increasing concentration of capital, rising organic composition, and intensified exploitation of labor.

Historical Trends in Capital Accumulation

This chart shows the historical growth of capital stock, the rising organic composition of capital (c/v), and changes in investment rates over time.

US nonfinancial corporations, 1970–2024, from the BEA NIPA and Fixed Assets Accounts via the marxist-ai project.

Concentration of Capital

This chart illustrates Marx's prediction that capital becomes increasingly concentrated in fewer hands over time, shown through top wealth shares and inequality measures.

United States, equal-split adults age 20+, from the World Inequality Database via the marxist-ai project. The real shape is a U, not a steady climb: the top 1% wealth share fell from ~30% (1950) to ~23% (1980), then rose back to ~35% by 2010 — Piketty-Saez-Zucman's well-known finding, not this chart's assumption.

Sectoral Comparison

This scatter plot compares different economic sectors, showing how higher organic composition of capital tends to correlate with lower profit rates. Bubble size represents capital intensity.

United States, 2021, r = s/(C+v) by ISIC industry section from OECD STAN via the marxist-ai project. Switch to "Play with hypothetical numbers" above to explore made-up sectors instead.

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Tendency for Rate of Profit to Fall

Marx identified the tendency for the rate of profit to fall as the fundamental cause of capitalist crises. As capitalists compete by investing in labor-saving technology, the organic composition of capital rises, leading to a declining rate of profit despite countervailing factors.

Historical Profit Rate Trends

This chart shows the long-term tendency for the rate of profit to fall, with economic crisis events marked. The rising organic composition of capital (dashed line) is the primary driver of this tendency.

G20 aggregate, 1950–2023, r = s/(C+v) from Penn World Table 11.0 via the marxist-ai project — the same construction Michael Roberts uses for his own world rate of profit, though this exact PWT-11.0-vintage reconstruction hasn't yet been reconciled against his own published numbers for this period.

Country Comparison

This chart compares profit rates across major capitalist economies. Computing…

United States, Germany, Japan, China, 1980–2023, r = s/(C+v) from Penn World Table 11.0 via the marxist-ai project. Note China's organic composition roughly doubling since 2000 alongside a falling rate of profit is a real, striking finding in this series — not an illustration of the theory, a case of it.

Countervailing Factors

This chart shows the strength of various countervailing factors that temporarily offset the falling rate of profit, including cheaper raw materials, labor intensification, wage reduction, capital devaluation, and foreign trade.

Hand-built example numbers. Marx's countervailing tendencies are qualitative categories, not a single measured series in any standard dataset — treat this chart as a concept map, not a chart of real indices.

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