Theories of Inequality Marxist Social Conflict Perspective

View of Society Causes of Inequality Plan for Action Problems with Marx Useful Insights from Marx

Weber’s Social Conflict Perspective View of Society Multidimensional View of Inequality Outlook on the Future

Structural Functional Perspective (Davis & Moore) View of Society Explanation of Inequality Problems with Davis and Moore’s Perspective Useful Insights from Davis and Moore

Karl Marx1818-1883

View of Society

Economic contextPolitical contextModes of production

Means of productionRelations of production

Key assumptions for Marx

Causes of Inequality and theLabor Theory of Value   

Selfishness of capitalists under capitalism

Leads to exploitation of the workerLeads to sharp divisions between

classesLeads to feelings of alienation and

frustration by workers.

Plan for Action:Becoming Class ConsciousConcentration and Communication Deprivation Economic Insecurity Alienation at Work Polarization Homogenization Organization and Struggle

Problems with MarxRevolution did not occur Capitalism was more prosperous for

the worker class than Marx predicted Profits don’t necessarily come solely

from labor Marx did not account for other

divisions in society besides class Marx does not account for authority

Useful Insights from Marx

Marx was right that once in large factories workers would organize

Useful Insights from Marx

There is a growing gap between upper and lower classes, e.g. CEO salary compared to worker salary:197345 x’s1991141 x’s 2002500 x’s

CEO pay and other trends (original figures have been converted into constant 96 dollars) (10) 1990 1995 Percent change --------------------------------------------------------------------- Average CEO pay $2.34 million $3.86 million +65% Average worker pay $27,615 $27,448 -0.6% Corporate profits $212 billion $317 billion +50% Worker layoffs 316,047 persons 439,882 persons +39%

In 1996, Business Week published the findings of an income survey of the top two executives at 362 of the nation's largest companies.

Current CEO compensation and the bailout.

Useful Insights from Marx

Class conflict does exist Trends in the deskilling of

American workers

Useful Insights from Marx

Capitalism has generated greater concentrations of wealth owned by fewer people 1950--top 100 of top 200,000 corps.

controlled 40% of industrial assets 1986--top 100 controlled 61%

Source: Wolff, Edward N. 2007. “Recent Trends in Household Wealth in the United States:Rising Debt and the Middle-Class Squeeze.” p. 15 (http://www.levy.org/pubs/wp_502.pdf).

Max Weber1864-1920

Weber’s Approach to Inequality

Weber’s view of society.Weber’s multidimensional view

of inequality.Weber’s outlook on the future.

Weber’s View of Society

Society is located in ideasReligion as source of ideas

leading to capitalismThe Protestant EthicThe Spirit of Capitalism

The Emergence of Capitalism

Protestant Ethic Protestant Reformation—

Luther’s idea of a “calling” Notion that God expected

people to master the world and master nature

Doctrine of predestination (Calvin)

The Emergence of CapitalismProtestant ethic established a rational

approach to the unlimited pursuit of profit = capitalism

Weber’s Multidimensional View of Inequality

ClassStatusPower/Party

Weber’s view of the future

Inequality is inevitableIron Cage of Bureaucracy

Structural Functionalist Approach to Inequality (Davis and Moore)

View of SocietyExplanation of InequalityFlaws and Useful Insights

Kingsley Davis (1908-1997)

Wilbert E. Moore (1914-1987)

View of Society

Basic ideas of functionalism--society is like an organism with interdependent parts

Davis & Moore--society is a hierarchy of positions

Key assumptions

Explanation of Inequality Inequality is necessary

Motivate best people to take appropriate positions

Insure people perform once in those positions

How are positions ranked? Functional importance Scarcity of skill

Explanation of InequalityHow are people matched to positions?

Differential rewards are attached to more important positions (i.e. those that require greater skill or training)

Economic Prestige Ascetic

Flaws of Davis & Moore’s TheoryLeads to blaming the victim.Equality of opportunity is impliedTraining is not always costlyOver-emphasizes the value of

economic rewardsMost important jobs are not always

highly rewarded (and vice versa)Who gets to decide which jobs are the

most functionally important?

Useful InsightsUnderstanding of the importance of

occupation to the placement of individuals in society

Taps into our notion of how things should work--meritocracy

Inequality

Inequality

Change

Conflict

Class Consciousness

Conflict

ChangeRationality

Marx

Weber Communism

Rationality

Three Perspectives on How Society is Divided

Capitalist (Bourgeoisie)

Worker (Proletariat)

Marx

Class Status Party

Weber

Hierarchy of Positions

Davis and Moore