How Marxist theory connected to economics?

Marxist theory is closely connected to economics, as it provides a critical analysis of the capitalist system and the ways in which it shapes economic relations and structures. At its core, Marxist theory emphasizes the importance of understanding the role of class struggle in shaping economic processes and outcomes. The Marxist theory views capitalism as a system in which the means of production are privately owned and controlled by a small capitalist class. The majority of the population, the working class, sells their labor power to the capitalists in exchange for wages. According to Marx, this creates a fundamental conflict of interest between these two classes, as capitalists seek to maximize profits by exploiting workers and paying them the lowest possible wages, while workers seek to increase their wages and improve their working conditions. Marxist economics emphasizes the importance of understanding the role of exploitation in capitalist economies. Marx argued that capitalists exploit workers by paying them less than the value of the goods and services they produce and then appropriating the surplus value for themselves. This surplus value is the source of profit in capitalist economies. Marxist theory also emphasizes the importance of understanding the role of crises and contradictions in capitalist economies. According to Marx, the inherent instability of capitalist economies arises from the tendency of capitalists to seek to maximize profits by driving down wages and costs, which in turn leads to overproduction, underconsumption, and eventually economic crises. Marxist economists also emphasize the importance of understanding the role of the state in capitalist economies. Marx argued that the state is an instrument of the ruling class and that its policies and actions reflect the interests of the capitalist class. Marxist economists, therefore, seek to understand how the state is involved in shaping economic policies and outcomes, and how these policies and outcomes reflect the interests of the ruling class. In summary, Marxist theory is closely connected to economics, as it provides a critical analysis of the capitalist system and the ways in which it shapes economic relations and structures. Marxist economics emphasizes the importance of understanding the role of exploitation, crises, contradictions, and the state in shaping economic processes and outcomes.