What are the Marxist explanations for the current global economic Essay

What are the Marxist explanations for the current global economic crises - Essay Example Marx argues that the relations of production are initially progressive but deteriorate over time to a point where capitalists are in control of the application of productive forces. The capitalists lack interest in promoting socially beneficial reforms. In a capitalist society, the capitalists benefit most as they are in control of the means of production. As such, they receive a disproportionate share of wealth, power, status and privileges. Marx insists that only labor should earn money and that money should not be used to make more money. As such, capitalists should not receive an income as interest on their savings or investments as they are going to earn income without working (Elster, 1986, P.259). Marxists argue that due capitalism’s insistence on production for profit; a huge gulf exists between production for profit and production to meet needs. Profits are maximized by producing to satisfy the needs of richer people; and as a result, urgent needs of poorer people are neglected (Elster, 1986, P.297). Capitalists engage in savage competition, and there is pressure to develop more efficient production and better technology. Over time, capitalists tend to increase the percentage of capital investment that goes into the machinery and to decrease the percentage put into buying labor. As a result, workers earn less while capitalists increasingly accumulate wealth. Consequently, the workers have less purchasing power and cannot afford the goods produced by capitalists leading to a fall in capitalists’ profits on the long-run (Elster, 1986, P.230). The aggressive competition and accumulation of wealth by capitalists gives rise to a chronic problem of finding profitable outlets for the accumulated capital. The search for outlets has led to important phenomena such as takeover mania, speculation, stock market crashes and financial crisis. More importantly, it has inspired

Financial Performance Interpretation (Strategic management Class) Essay

Financial Performance Interpretation (Strategic management Class) - Essay Example the ratio between the current assets and liabilities. These ratios can be compared for all three offices of the company to other companies to give us an idea of how well Stilsim Company is performing. Despite the fact that Stilsim has been performing profitably for the past two and a half decades, a SWOT analysis shows that the reason why they have been suffering financially lately is due to them not implementing upgrades to keep up with the fast growth of the business. If we compare Stilsim to a competitor such as Cross Country Healthcare we can see that it is performing satisfactorily as shown in Table 1 below. In order to fix the problem we first need to identify it, and in order to do so a good approach is to compare the three offices. A comparison of the profit margins for the three offices is given in Table 2 below. We can clearly see that it is the Capital City office that is struggling, despite the fact that it is the main office and therefore is expected to perform better than the others. A alarming observation is that Stilsim is spending more money and earning roughly the same profit each year, and in the long run this could become a serious bottleneck for the company’s growth and survival. After a comparison to one of their competitors we can see that currently Stilsim company is performing satisfactorily. However, by analyzing the performance of their three offices we have been able to identify the issue and the company should attempt to rectify the problem. Being in the business for 25 years, the company should be aiming higher and increasing their profits, rather than ending up increasing their expenses each subsequent year with the same profits. By analyzing Stilsim company’s finances using internal analysis, external analysis and ratio analysis several issues have been identified, the most significant being the performance of the Capital City Office which is running in to a loss and is a financial