Editing Means of production (section)

=== Determinant of class ===
Marx's theory of class defines classes in their relation to their ownership and control of the means of production. In a capitalist society, the [[bourgeoisie]], or the capitalist class, is the class that owns the means of production and derives a [[passive income]] from their operation. Examples of the capitalist class include business owners, shareholders and the minority of people who own factories, machinery and lands. Countries considered as the capitalist countries include Australia, Canada, the U.S., and other nations which hold a free market economy. In modern society, small business owners, minority shareholders and other smaller capitalists are considered as ''[[Petite bourgeoisie]]'' according to Marx's theory, which is distinct from bourgeoisie and proletariat as they can buy the labour of others but also work along with employees.

In contrast, the [[proletariat]], or [[working class]], comprises the majority of the population that lacks access to the means of production and are therefore induced to sell their [[labour power]] for a wage or salary to gain access to necessities, goods and services.<ref>{{cite book |last= Ishiyama, Breuning |first= John, Marijke|title= 21st Century Political Science: A Reference Handbook |publisher= SAGE Publications, Inc |date= October 22, 2010|quote= For Marx, class was defined by an individual’s relationship to the means of production...Class is determined by the extent to which people own most, some, or little of the means of production, or by their relationship to the means of production. It generally conflicts over control or access to the means of production that drives history. }}</ref>

According to Marx, wages and salaries are considered as the price of [[labour power]], related to working hours or outputs produced by the labour force. At the company level, an employee does not control and own the means of production in a capitalist mode of production. Instead, an employee is performing specific duties under a contract of employment, working for wages or salaries.<ref>{{Cite book|last=Black|first=John|url=https://www.worldcat.org/oclc/970401192|title=Employee--A dictionary of economics|date=2017|others=Nigar Hashimzade, Gareth D. Myles|isbn=978-0-19-181994-0|edition=5|location=[Oxford]|oclc=970401192}}</ref> As for firms and profit-seeking organizations, from a personnel economics perspective, to maximize efficiency and productivity there must be an equilibrium between labour markets and product markets. In human resource practices, compensation structure tends to shift towards pay-for-performance bonus or incentive pay rather than base salary to attract the right workers, even if conflicts of interest exist in an employer-worker relationship.<ref>{{Cite journal|last1=Lazear|first1=Edward P.|last2=Shaw|first2=Kathryn L.|date=2007|title=Personnel Economics: The Economist's View of Human Resources|url=https://www.jstor.org/stable/30033753|journal=The Journal of Economic Perspectives|volume=21|issue=4|pages=91–114|doi=10.1257/jep.21.4.91|jstor=30033753|issn=0895-3309}}</ref>

To the question of why classes exist in [[human societies]] in the first place, Karl Marx offered a [[Marx's theory of history|historical]] and scientific explanation that it was the [[cultural practice]] of ownership of the means of production that gives rise to them. This explanation differs dramatically from other explanations based on "differences in ability" between individuals or on religious or political affiliations giving rise to [[castes]]. This explanation is consistent with the bulk of Marxist theory in which Politics and [[Marxism and religion|Religion]] are seen as mere outgrowths ([[base and superstructure|superstructures]]) of the basic underlying economic reality of a people.<ref>[http://www.marx2mao.com/M&E/SUS80.html Frederick Engels: Socialism: Utopian and Scientific Chapter III Historical Materialism] Marx2mao.com.  p. 74</ref>