Final answer:
The transformation problem in Marx refers to the conflict between the value created by labor and the distribution of profits in a capitalist society, leading to alienation and potential revolutionary change.
Step-by-step explanation:
The transformation problem in Marx relates to the discrepancy between the value of goods as measured by the socially necessary labor time and the distribution of profits in a capitalist society. Marx argued that capitalism leads to a situation where the proletariat, or working class, do not own the fruits of their labor, but instead sell their labor power to the bourgeoisie for wages. The bourgeoisie, owning the means of production, benefit from the surplus value created by workers. This relationship results in an alienation of the working class, as they become disconnected from the outcomes of their labor, losing agency in determining the character of their actions and their economic position.
Marxism views historical change as a struggle between social classes and posits that the capitalist mode of production enhances the division between the bourgeoisie and the proletariat, setting the stage for a potential revolutionary overthrow. Over time, Marx believed that this conflict would lead to a society where all people would be equal, property would be held in common, and class divisions would disappear.
Marxist theorists today observe the changing economic landscape with the rise of mechanized production and the use of information technology. These developments may lead to an increase in class consciousness among workers, uniting them to demand systemic change.