Marx sought to show that what Hegel was describing in his mystical dialectic was actually rooted in the material process of production.
From Capital:
The mystifying side of Hegelian dialectic I criticised nearly thirty years ago, at a time when it was still the fashion. But just as I was working at the first volume of "Das Kapital," it was the good pleasure of the peevish, arrogant, mediocre Epigonoi [Epigones – Büchner, Dühring and others] who now talk large in cultured Germany, to treat Hegel in same way as the brave Moses Mendelssohn in Lessing's time treated Spinoza, i.e., as a "dead dog." I therefore openly avowed myself the pupil of that mighty thinker, and even here and there, in the chapter on the theory of value, coquetted with the modes of expression peculiar to him. The mystification which dialectic suffers in Hegel's hands, by no means prevents him from being the first to present its general form of working in a comprehensive and conscious manner. With him it is standing on its head. It must be turned right side up again, if you would discover the rational kernel within the mystical shell.
In its mystified form, dialectic became the fashion in Germany, because it seemed to transfigure and to glorify the existing state of things. In its rational form it is a scandal and abomination to bourgeoisdom and its doctrinaire professors, because it includes in its comprehension and affirmative recognition of the existing state of things, at the same time also, the recognition of the negation of that state, of its inevitable breaking up; because it regards every historically developed social form as in fluid movement, and therefore takes into account its transient nature not less than its momentary existence; because it lets nothing impose upon it, and is in its essence critical and revolutionary.
Now, to whit, a great many Marxists do not understand Marx. This is why you have Marxists siding with the left-wing of Capital, like the Democrats or the German SDP, or identity politicking liberals masquerading as Marxists in academia. The late, great left-communist had this to say about bourgeois academic Marxism:
Marxism, however, signifies neither more nor less than the destruction of capitalism. Even as a scientific discipline it offers nothing to the bourgeoisie. And yet, as an alternative to the discredited bourgeois social theory, it may serve the latter by providing it with some ideas useful for its rejuvenation. After all, one learns from the opposition. Moreover, in its apparently "realized" form in the "socialist countries," Marxism points to practical solutions that may also be useful in the mixed economies, such as a further increase of stabilizing governmental regulations. An income and wage policy, for instance, comes quite close to the analogous arrangements in centrally controlled economic systems. Finally, in view of the absence of revolutionary movements, the academic type of Marxian inquiry is risk-free, inasmuch as it is restricted to the world of ideas. Strange as it may seem, it is the lack of such movements in a period of social turmoil that turns Marxism into a marketable commodity and a cultural phenomenon attesting to the tolerance and democratic fairness of bourgeois society.
And one last post:
1. Marx and Engels did not demand absolute equality.
As between one country, one province and even one place and another, living conditions will always evince a certain inequality which may be reduced to a minimum but never wholly eliminated. The living conditions of Alpine dwellers will always be different from those of the plainsmen. The concept of a socialist society as a realm of equality is a one-sided French concept deriving from the old "liberty, equality, fraternity," a concept which was justified in that, in its own time and place, it signified a phase of development, but which, like all the one-sided ideas of earlier socialist schools, ought now to be superseded, since they produce nothing but mental confusion, and more accurate ways of presenting the matter have been discovered. (Engels 1875)
What is "a fair distribution"?
Do not the bourgeois assert that the present-day distribution is "fair"? And is it not, in fact, the only "fair" distribution on the basis of the present-day mode of production? Are economic relations regulated by legal conceptions, or do not, on the contrary, legal relations arise out of economic ones? Have not also the socialist sectarians the most varied notions about "fair" distribution?
To understand what is implied in this connection by the phrase "fair distribution", we must take the first paragraph and this one together. The latter presupposes a society wherein the instruments of labor are common property and the total labor is co-operatively regulated, and from the first paragraph we learn that "the proceeds of labor belong undiminished with equal right to all members of society."
"To all members of society"? To those who do not work as well? What remains then of the "undiminished" proceeds of labor? Only to those members of society who work? What remains then of the "equal right" of all members of society?
But "all members of society" and "equal right" are obviously mere phrases. The kernel consists in this, that in this communist society every worker must receive the "undiminished" Lassallean "proceeds of labor".
Let us take, first of all, the words "proceeds of labor" in the sense of the product of labor; then the co-operative proceeds of labor are the
total social product. (Marx, Critique Of The Gotha Programme)
2. Marx and Engels did not worship the State.
The state is nothing but an instrument of opression of one class by another - no less so in a democratic republic than in a monarchy.
Friedrich Engels
Because the state arose from the need to hold class antagonisms in check, but because it arose, at the same time, in the midst of the conflict of these classes, it is, as a rule, the state of the most powerful, economically dominant class, which, through the medium of the state, becomes also the politically dominant class, and thus acquires new means of holding down and exploiting the oppressed class. Thus, the state of antiquity was above all the state of the slave owners for the purpose of holding down the slaves, as the feudal state was the organ of the nobility for holding down the peasant serfs and bondsmen, and the modern representative state is an instrument of exploitation of wage labour by capital. By way of exception, however, periods occur in which the warring classes balance each other so nearly that the state power, as ostensible mediator, acquires, for the moment, a certain degree of independence of both. Such was the absolute monarchy of the seventeenth and eighteenth centuries, which held the balance between the nobility and the class of burghers; such was the Bonapartism of the First, and still more of the Second French Empire, which played off the proletariat against the bourgeoisie and the bourgeoisie against the proletariat. The latest performance of this kind, in which ruler and ruled appear equally ridiculous, is the new German Empire of the Bismarck nation: here capitalists and workers are balanced against each other and equally cheated for the benefit of the impoverished Prussian cabbage junkers.
In most of the historical states, the rights of citizens are, besides, apportioned according to their wealth, thus directly expressing the fact that the state is an organisation of the possessing class for its protection against the non-possessing class. It was so already in the Athenian and Roman classification according to property. It was so in the medieval feudal state, in which the alignment of political power was in conformity with the amount of land owned. It is seen in the electoral qualifications of the modern representative states. Yet this political recognition of property distinctions is by no means essential. On the contrary, it marks a low stage of state development. The highest form of the state, the democratic republic, which under our modern conditions of society is more and more becoming an inevitable necessity, and is the form of state in which alone the last decisive struggle between proletariat and bourgeoisie can be fought out - the democratic republic officially knows nothing any more of property distinctions. In it wealth exercises its power indirectly, but all the more surely. On the one hand, in the form of the direct corruption of officials, of which America provides the classical example; on the other hand, in the form of an alliance between government and Stock Exchange, which become the easier to achieve the more the public debt increases and the more joint-stock companies concentrate in their hands not only transport but also production itself, using the Stock Exchange as their centre. The latest French republic as well as the United States is a striking example of this; and good old Switzerland has contributed its share in this field.
But that a democratic republic is not essential for this fraternal alliance between government and Stock Exchange is proved by England and also by the new German Empire, where one cannot tell who was elevated more by universal suffrage, Bismarck* or Bleichröder.**
* [Otto von Bismarck, 1815-1898, First Chancellor of the German Empire from 1871 to 1890]
** [Gerson von Bleichröder, 1822-1893, German financer and Bismarck's unofficial adviser in financial matters]
And lastly, the possessing class rules directly through the medium of universal suffrage. As long as the oppressed class, in our case, therefore, the proletariat, is not yet ripe to emancipate itself, it will in its majority regard the existing order of society as the only one possible and, politically, will form the tail of the capitalist class, its extreme Left wing. To the extent, however, that this class matures for its self-emancipation, it constitutes itself as its own party and elects its own representatives, and not those of the capitalists. Thus, universal suffrage is the gauge of the maturity of the working class. It cannot and never will be anything more, in the present-day state; but that is sufficient. On the day the thermometer of universal suffrage registers boiling point among the workers, both they and the capitalists will know what to do.
The state, then, has not existed from all eternity. There have been societies that did without it, that had no idea of the state and state power. At a certain stage of economic development, which was necessarily bound up with the split of society into classes, the state became a necessity owing to this split. We are now rapidly approaching a stage in the development of production at which the existence of these classes not only will have ceased to be a necessity, but will become a positive hindrance to production. They will fall as inevitably as they arose at an earlier stage. Along with them the state will inevitably fall. Society, which will reorganise production on the basis of a free and equal association of the producers, will put the whole machinery of state where it will then belong: into the museum of antiquities, by the side of the spinning wheel and the bronze axe.
- Engels, On The Origin Of The Family, Private Property & The State