Economics and Politics

 Chapter 10 Discussion - Economics and Politics

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Chapter 10: Economics and Politics

Karl Marx and Max Weber rocked the economic world with their ideas on class and economics.

Marx:

To understand Marx a historical background is needed.

Karl Marx (1818-1883) wrote midst the Industrial Revolution of the nineteenth century. Until the mid-1800s, people had limited sources of employment. Most people worked in farming, ranching, or mining. A few were lucky enough to work at nonlabor jobs that supported the laborers. With the advent of the factory work suddenly there was a flood of ready-made goods (like clothing and canned foods) that lead to consumerism. People readily purchased products that they would have made or grown before the Industrial Revolution.

Marx witnessed the rapidly changing world of industry which evolved as a result of the new consumerist mindset. He believed that the Industrial Revolution lead to a great class divide. Marx also thought that the world was divided into only two statuses. He stated that a person’s status is directly correlated with their relationship to means of production. Either you own some form of property that produces capital (profit), or you own your own labor. He used terms culled from the French Revolution to describe these two classes. The Bourgeoisie (French for town dwellers), also known as the “Haves,” own the capital. The Proletariats (peasants) sell their labor to the Bourgeoisie.

During Marx’s time, the Industrial Baron Haves (those who were the most fiscally successful of the Bourgeoisie) were earning $20 million a year while workers on average earned $500.00 a year. That meant owners made 40,000 times as much as their workers. Also, the workers averaged 60-70 hour work weeks. Until nearly a hundred years later, there were no minimum wage laws (the first minimum wage was 25 cents per hour!). Workers did not have any benefits. Employee health insurance, overtime pay, and sick days did not exist. Such benefits for workers were not known until the mid- 1940’s.

Working conditions were considerably different than what we have today. There were no human resource departments. Workplace safety rules did not exist. Serious workplace injuries were commonplace. Employees and their families did not have the right to sue nor could they file complaints about unsafe working conditions. Workers were routinely mutilated by machinery and workplace deaths were common. After an employee was rendered disabled, the management would send an apology letter. No benefits would be given to the employee or their family.

There were also no child labor laws. Often children younger than ten years old worked in factories, sweatshops, and coal mines. Literally, millions of children worked in jobs that would often destroy their health and render them disabled for life.

Based on this world view, Marx developed his socioeconomic theory.

Marx’s Major Points:

1. Injustice (two sets of rules for the social classes) for and exploitation of the Proletariats for cheap labor. He believed that Proletariats were not valued as individuals, but seen as replaceable sources of labor.


2. Status symbols (items of little real value but are deemed socially desirable ex: designer label clothing) are seen by Marx as an escape from everyday troubles.


3. “Having” things is equated to being of important status. The Bourgeoisie “sell” the Proletariats the status symbols. Therefore, they ensure even more profit for the Haves.


4. Irrational belief in one’s status equals false consciousness of status.


5. Professionals who receive salaries will eventually become hourly workers. Once they enter the hourly rate, he believed that they would see a decrease in income. This decrease in salary would further the profit of their employers.


6. Capitalist economies (an economic system, based on competition, in which most wealth is privately owned) often cause bitter sentiments between the economic classes. This division will grow wider leading eventually to an economic revolution. The Proletariats will unite and seize the wealth from the Bourgeoisie.

Weber:

Max Weber (1864-1920) didn’t totally disagree with Marx. However, Weber saw social status as a more complex issue. He believed that cultural influences, as well as, means of production, are important to overall social status.

Weber basically refines and extends Marx’s ideas. Weber’s model includes three elements that determine one’s social class. He stated that one’s status is a composite of the following three factors: class, status, and power. Class is the relationship to means of production (much like Marx stated). Status is social prestige. This references the social honor and respect that is given to the individual receives from society. Power is the ability to influence others with one’s society.

Weber saw the world as a more dimensional place than did Marx. Each stratum of the culture is seen as having a multitude of contributing factors that determine one’s status.

For example: Mother Teresa, a nun who had taken the vow of poverty (meaning she received no wages and owned virtually no possessions), was assigned to head a convent in India. She made it part of the convent mission that those that were HIV positive or had AIDS would be taken in, nursed, and be given compassion and love. This was during the time in which little was known about how AIDS was contracted, there were no effective treatments, and there was worldwide paranoia about AIDS. After word spread about the work of her convent (and, the work of others including Princess Diana), the world began to reevaluate the way AIDS patients were treated.

According to Marx, Mother Teresa was a have-not. She owned no capital, so she was, therefore, a proletariat.

According to Weber, she had a high social status because she received social honor and was able to influence others.

Discussion Question: Although there are several ways that cultures rank people (examples: royalty family lineage, sex, religion, etc.), it is argued that in the United States we are primarily ranked on the amount of wealth we own. Is this true? Or, does Weber make a strong point that there are other factors in play when people rank one another?

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