Today, Professor Shapiro continues his discussion of Enlightenment theory of Karl Marx, focusing on the foundations of his theory of capitalism. The central question is, how is wealth created under capitalism at the micro level? For Marx, Adam Smith's invisible hand is not entirely benevolent. His labor theory of value stipulates that living human labor-power is the only way to create new value, and therefore capitalists who shift toward capital-intensive production cannot actually create new value. Marx also assumes wages are at the level of subsistence, and that capitalists turn a profit by exploiting the surplus labor time of workers. Professor Shapiro also explores some corollary concepts to Marx's mode of production: the class-for-itself/class-in-itself distinction, socially necessary labor time and surplus labor time, and the extent to which workers are other-referential.

Reading assignment:
Tucker, The Marx-Engels Reader, Capital, Vol. I, pp. 294-344

Useful summaries of the analytical logic of Capital:
     Mandel's introduction to the Viking/Pelican edition of Capital, vol. I [optional]
     Jalee, How Capitalism Works [optional]

1. Information and Housekeeping
2. Introductory Lecture
3. Natural Law Roots of the Social Contract Tradition
4. Origins of Classical Utilitarianism
5. Classical Utilitarianism and Distributive Justice
6. From Classical to Neoclassical Utilitarianism
7. The Neoclassical Synthesis of Rights and Utility
8. Limits of the Neoclassical Synthesis
9. The Marxian Challenge
10. Marx's Theory of Capitalism
11. Marxian Exploitation and Distributive Justice
12. The Marxian Failure and Legacy
13. Appropriating Locke Today
14. Rights as Side Constraints and the Minimal State
15. Compensation versus Redistribution
16. The Rawlsian Social Contract
17. Distributive Justice and the Welfare State
18. The "Political-not-Metaphysical" Legacy
19. The Burkean Outlook
20. Contemporary Communitarianism (I)
21. Contemporary Communitarianism (II)
22. Democracy and Majority Rule (I)
23. Democracy and Majority Rule (II)
24. Democratic Justice: Theory
25. Democratic Justice: Applications

This course explores main answers to the question, "When do governments deserve our allegiance?" It starts with a survey of major political theories of the Enlightenment—Utilitarianism, Marxism, and the social contract tradition—through classical formulations, historical context, and contemporary debates relating to politics today. It then turns to the rejection of Enlightenment political thinking. Lastly, it deals with the nature of, and justifications for, democratic politics, and their relations to Enlightenment and Anti-Enlightenment political thinking. Practical implications of these arguments are covered through discussion of a variety of concrete problems.

Course Structure:
This Yale College course, taught on campus twice per week for 50 minutes, was recorded for Open Yale Courses in Spring 2010.