Marx predicted that:

Question

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Marx believed that wage rates would tend toward subsistence, meaning that wages would only be high enough to sustain a worker's basic needs for survival. This was due to his belief in the labor theory of value, which argued that the value of a good or service is determined by the amount of labor put into producing it. Therefore, in a capitalist economy where profits are the main goal, wages would be kept low in order to maximize profits. Marx did not predict that profit rates would rise or that labor's share of total income in market economies would rise. He also did not predict that business cycles would become more stable, as he believed that capitalism inherently had crises and instability built into it.

Marx Predicted That