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Dialectical materialism is the major philosophical theory with which Marx is associated. From this starting point Marx sees history as a series of class struggles brought about by the particular mode of production (materialism) that exists at any one point in history. These class struggles result in changes in society as one system evolves into the next. Capitalism evolves into Socialism which then evolves into Communism. Marx believed that all of this is explained by his philosophy of dialectical materialism.

Marx essentially believed that history was made up of cycles of class warfare between the proletariat (the lower, working class) and the bourgeoisie (the upper class who owned and controlled the means of production). He felt that one day the proletariat would rise up in a revolution, overthrow the bourgeoisie, and create a totalitarian government that essentially would own all business. The totalitarian government (the 'Dictatorship of the proletariat') would be necessary to eliminate all vestiges of the former capitalist system ensuring that there be no return to the capitalist system even for a short time. This would ensure the transition to what Marx called "scientific socialism" as a precursor to Communism. Eventually, Socialism would evolve into Communism. Government would wither away as unnecessary, private property would be no more and people would contribute according to their ability and receive according to their need.

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