08/08/2026
Banished from Germany and expelled from France, Karl Marx arrived at London in August of 1849. He made London his home for the rest of his life. Stateless and destitute, and with his wife Jennifer expecting their fourth child, he was rescued by his lifelong collaborator, Friedrich Engel, who lived in Manchester since 1842. For the next 20 years, Engels will funnel money to Marx to keep him afloat. Marx, the defender of the workers, seems to have never worked one day of his life. Besides reading, witting, and plotting, he did nothing else.
It is in London that Marx comes in contact with the world of the classical economists of capitalism, such as Adam Smith, David Ricardo, Erasmo Darwin, de Sismondi, and others. He was also influenced by the population errors of Malthus. From them he concluded that capitalism was nothing more than a thief’s construct. Why? Because, if they were correct about the factors of production, and Ricardo’s subsistence theory of wages was also correct, the only factor of production that actually created wealth was the worker. The other two,land and capital, being inanimate, produced nothing. The capitalist was a thief who stole the surplus value belonging to the proletarians.
Wages were kept artificially low, as the system deemed the worker was merely another calculation on a ledger. As this happened, other classes will join the workers at one end of society, more and more bodies pressing against their meagerness, owning less and less. At the other end, we will find less and less capitalists owning more and more wealth, as they ate each other in competition. In between, a void, a vacuum, the engine of revolution.
But Marx was wrong, none of this happened. His errors gave way to revisionist theories after his death, as his followers had to find ways to explain the failure to materialize of his predictions. To this day, his minions find ways to clean up the mess while promising the great Valhalla envisioned by the master. His failure was later explained well by the 1870s marginalists like Jevons, Walrass, and Menger; although the Spanish classical thinkers had anticipated these discoveries, they all ought have to know better.
Marx missed the entrepreneur, the idea. The idea is the one that creates what the worker later confects The system rewarded and incentivized ideas that change the world. The idea was the fourth factor of production that redeemed the system qua system.