Karl Marx: A Critical View on Economic Policy

While Karl Marx’s critique of political economy is fairly well known, its relation to economic policy in capitalism is relatively understudied. We examine Marx’s economic writings, particularly Capital, to show that Marx’s analysis displays a nuanced understanding of the shaping and workings of economic policy in capitalism. We argue that Marx’s analysis of economic policy and regulation in cases such as the Factory Acts and the Enclosure Acts displays an understanding of economic policy and state regulation as outcomes of class struggle and rivalries between and within classes, including intra-capitalist rivalries. At the same time, economic policy and regulation emerge as key factors that secure and shape the conditions of existence for the extraction, appropriation, and distribution of surplus value at an expanded scale in capitalism. As such, Marx’s understanding of economic policy offers valuable insight into the shaping of policy and the role of the state in contemporary capitalism.