Posted in Finance, Accounting and Economics Terms, Total Reads: 75
Definition: Economic Determinism
Economic determinism is the theory which states that all the Political, Social, cultural and other activities in an economy are the bi –product of the economic relation between the owners and the workers.
This theory has been attributed to Karl Marx who was a German philosopher and an economist. Marx closely observed poverty and then developed his own economic theories. People of the era believed that poverty was a given and that it was bound to exist.
Marx theory attacked the basis of capitalism i.e the right of property and argued that the resources and property were of all and everyone had an equal right on these. Marx stated that the present system believed that the present system of economy was benefitting the owners where they were using their resources to turn more profitable and oppressing the workers.