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Chapter1
Basic Principles of Marxist Political Economy

Marx and Engels use dialectical materialism and historical materialism to establish a theoretical system that clarifies the laws governing the production, distribution, exchange, and consumption of material materials at all development stages of human society.Marx believes that the economic foundation determines the superstructure; the development of productive forces will promote the evolution of production relations, and the production relations will also affect the productive forces.

Marx adhered to the theory of labor value.He discovered the duality of labor contained in the duality of commodities: specific labor creates use value, and abstract labor forms value, making the nature of value scientifically explained.Marx discovered that the value created by the capitalist using the labor force of the hired laborer over the value of the labor force itself was the true source of “surplus value”, and founded the “surplus value theory”, which laid the cornerstone of Marx’s economic theory.

Marx comprehensively examined the reproduction of total social capital, and divided social products into two types of production materials and consumption materials in physical form, and divided them into three parts: constant capital, variable capital, and surplus value.Based on this, in the above, the conditions for the realization of simple reproduction of capitalism and the expansion of reproduction of capitalism are analyzed, and the profound contradictions in the realization of capitalist value and surplus value are clarified.Marx analyzed the entire process of the capitalist economic movement from essence to phenomenon, clarified the process of value conversion into production price and surplus value into profit and average profit, and further clarified the surplus value in industrial capitalists, commercial capitalists, borrowing capitalists and division between landowners.Through a comprehensive analysis of the economic structure and economic movements, Marx proves the inevitable economic crisis and came to the following conclusion: the contradiction between the concentration of the means of production and the socialization of labor must reach an incompatible with its system.At this point, labor and management faces sharp confrontation.

The Communist Party of China led the people of all ethnic groups in the country to victory in the New Democratic Revolution and the establishment of People’s Republic of China.Under the guidance of Marxism, great socialist construction has been carried out.Under the strong leadership of generations of leaders, we have concluded a socialist way with Chinese characteristics that suits China’s national conditions and achieved great success in economic and social construction.China has become the world’s second-largest economy and the largest trader of goods.At the same time, 5G communications, high-speed railway systems and other high-tech innovation capabilities have led the world.China has entered a new era.It will be guided by Xi Jinping’s thoughts on socialism with Chinese characteristics in the new era and adhere to the five development concepts; continue to closely integrate the basic principles of Marxism with Chinese practice, carry out theoretical and practical innovations, and create a more brilliant socialist construction cause. yStosX5yMQRqcKJvXxrVE7VdAom295r/mFlOBgB3QI9+s8cAnJMI9tBV8KvomX51

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