Karl Marx In 1867, the first volume of "Das Kapital" was published, a work which analysed the capitalist process of production. Here Marx elaborated his labour theory of value, which had been influenced by Thomas Hodgskin. Marx acknowledged Hodgskin's "admirable work" "Labour Defended against the Claims of Capital" at more than one point in "Capital." Indeed, Marx quoted Hodgskin as recognising the alienation of labour that occurred under modern capitalist production. No longer was there any "natural reward of individual labour. Each labourer produces only some part of a whole, and each part having no value or utility of itself, there is
Circular flow of income economics, economic reproduction refers to recurrent (or cyclical) processes by which the initial conditions necessary for economic activity to occur are constantly re-created. Economic reproduction involves the physical "production" and "distribution" of goods and services, the "trade" (the circulation via exchanges and transactions) of goods and services, and the "consumption" of goods and services (both productive or intermediate consumption and final consumption). Karl Marx developed the original insights of Quesnay to model the circulation of capital, money, and commodities in the second volume of "Das Kapital" to show how the reproduction process that must occur in any type of society