Editing Unemployment (section)

===Marxian theory of unemployment===
[[File:Marx - Theorien über den Mehrwert, 1956 - 5708926.tif|thumb|[[Karl Marx]], ''Theorien über den Mehrwert'', 1956]]
{{Blockquote|text=It is in the very nature of the [[capitalist mode of production (Marxist theory)|capitalist mode of production]] to overwork some workers while keeping the rest as a [[reserve army of labour|reserve army]] of unemployed paupers.|author=Marx|source=[[Theories of Surplus Value|Theory of Surplus Value]]<ref name="Marx 1863 478 or at MEW, 26.3, 300"/>}}

Marxists share the Keynesian viewpoint of the relationship between economic demand and employment, but with the caveat that the market system's propensity to slash wages and reduce labor participation on an enterprise level causes a requisite decrease in aggregate demand in the economy as a whole, causing crises of unemployment and periods of low economic activity before the [[capital accumulation]] (investment) phase of economic growth can continue. According to [[Karl Marx]], unemployment is inherent within the unstable capitalist system and periodic crises of mass unemployment are to be expected. He theorized that unemployment was inevitable and even a necessary part of the capitalist system, with recovery and regrowth also part of the process.<ref>{{Cite web |url=https://www.marxists.org/archive/hardcastle/unemployment.htm |title=Marx and Keynes on Unemployment |access-date=15 June 2018 |archive-url=https://web.archive.org/web/20180615083213/https://www.marxists.org/archive/hardcastle/unemployment.htm |archive-date=15 June 2018 |url-status=dead  }}</ref> The function of the [[proletariat]] within the capitalist system is to provide a "[[reserve army of labour]]" that creates downward pressure on wages. This is accomplished by dividing the proletariat into surplus labour (employees) and under-employment (unemployed).<ref>Marx, Karl (2009). Capital: An Abridged Edition. Edited by David McLellan, Oxford Paperbacks, Oxford, UK. {{ISBN|978-0-19-953570-5}}.</ref> This reserve army of labour fight among themselves for scarce jobs at lower and lower wages. At first glance, unemployment seems inefficient since unemployed workers do not increase profits, but unemployment is profitable within the global capitalist system because unemployment lowers wages which are costs from the perspective of the owners. From this perspective low wages benefit the system by reducing [[economic rent]]s. Yet, it does not benefit workers; according to Karl Marx, the workers (proletariat) work to benefit the bourgeoisie through their production of capital.<ref>{{Cite web | url=https://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm | title=Communist Manifesto (Chapter 1)}}</ref> Capitalist systems unfairly manipulate the market for labour by perpetuating unemployment which lowers laborers' demands for fair wages. Workers are pitted against one another at the service of increasing profits for owners. As a result of the capitalist mode of production, Marx argued that workers experienced alienation and estrangement through their economic identity.<ref>{{Cite web | url=https://www.marxists.org/glossary/terms/a/l.htm | title=Glossary of Terms: Al}}</ref> According to Marx, the only way to permanently eliminate unemployment would be to abolish capitalism and the system of forced competition for wages and then shift to a socialist or communist economic system. For contemporary Marxists, the existence of persistent unemployment is proof of the inability of capitalism to ensure full employment.<ref>{{cite web|last=Marx|first=Karl|title=The Communist Manifesto|url=http://www.marxists.org/archive/marx/works/1848/communist-manifesto/index.htm|access-date=22 October 2010}}</ref>