Karl Marx — he was, on the one hand, the theorist of history whose theories have today largely gained acceptance. In the United States, these transfer payments, as they are called, amount to some 10 percent of total consumer income; in a number of European nations, they come to considerably more.
Marxist critics contend that labourers in a capitalist economy are systematically paid less than the value of their work by virtue of the superior bargaining power of employers, so that the claim of efficiency masks an underlying condition of exploitation.
The radical free market theories espoused by Friedman and his progeny, however, have not fared so well in recent decades, either at the policy or the theoretical level. It cannot be said that these policies have been unqualified successes, either in bringing about vigorous or steady growth or in ridding the system of its inflationary tendencies.
On the contrary, even if individual participants in the market are motivated by self-interest in the most venial sense which is often not truethey still engage in voluntary transactions that make both parties better off. For Marx, the key take-away from the Labour Theory of Value was that it implies that the price of labour is reflective of the quantity of labour necessary to produce it.
In contrast, the constituency for libertarian free market policies is minuscule. Secondly, it is important to acknowledge that Marxist methodology is almost a polar opposite of neo-classical methodology.
The issue is largely one of scale. Accordingly, as Kolozi himself documents, important strains of the conservative tradition have been deeply aware of the evils associated with excessive concentration of power in either government or business.