The correct answer is Karl Marx.
Karl Marx was a German philosopher, economist, historian, sociologist, political theorist, journalist and socialist revolutionary. Born in Trier, Germany, Marx studied law and philosophy at university. He married Jenny von Westphalen in 1843. Due to his political publications, Marx became stateless and lived in exile in London for decades.
Marx’s theories about society, economics and politicsâcollectively understood as Marxismâhold that human societies develop through class struggle. In capitalism, this manifests itself in the conflict between the ruling classes (known as the bourgeoisie) that control the means of production and the working classes (known as the proletariat) that enable these means by selling their labor power in return for wages.
Marx argued that capitalism would inevitably produce internal tensions which would lead to its destruction. Just as capitalism replaced feudalism, he believed socialism would, in its turn, replace capitalism, and lead to a stateless, classless society called pure communism.
The theory of surplus value, according to Marx, is the difference between the actual value of the goods and services produced by workers and the wages paid to them. Marx argued that this surplus value is appropriated by the capitalist class as profit, which is the source of all capital accumulation.
Marx’s theory of surplus value has been criticized by economists such as John Stuart Mill and Alfred Marshall. Mill argued that the value of a good or service is determined by the amount of labor required to produce it, not by the amount of labor that is actually paid for. Marshall argued that the value of a good or service is determined by the marginal utility of that good or service, not by the amount of labor that is required to produce it.
Despite these criticisms, Marx’s theory of surplus value has had a significant impact on economic thought and political philosophy. It has been used to justify socialist and communist revolutions, and it continues to be debated by economists and philosophers today.
The other options are incorrect.
- Joseph Schumpeter was an Austrian-American economist and sociologist. He is best known for his work on business cycles and economic development. Schumpeter did not believe that profit was legalized robbery.
- William Graham Sumner was an American economist and sociologist. He is best known for his work on social Darwinism. Sumner did not believe that profit was legalized robbery.
- Frank Knight was an American economist. He is best known for his work on risk and uncertainty. Knight did not believe that profit was legalized robbery.