Theories of Inequality
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Marxist Social Conflict Perspective
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Weber’s Social Conflict Perspective
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View of Society
Causes of Inequality
Plan for Action
Problems with Marx
Useful Insights from Marx
View of Society
Multidimensional View of Inequality
Outlook on the Future
Structural Functional Perspective (Davis &
Moore)
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View of Society
Explanation of Inequality
Problems with Davis and Moore’s Perspective
Useful Insights from Davis and Moore
Karl Marx
1818-1883
View of Society
Economic
context
Political context
Modes of production
Means
of production
Relations of production
Key
assumptions for Marx
Causes of Inequality and the
Labor Theory of Value
 Selfishness
of capitalists under
capitalism
 Leads to exploitation of the worker
 Leads to sharp divisions between
classes
 Leads to feelings of alienation and
frustration by workers.
Plan for Action:
Becoming Class Conscious
 Concentration
and Communication
 Deprivation
 Economic
Insecurity
 Alienation at Work
 Polarization
 Homogenization
 Organization and Struggle
Problems with Marx
 Revolution
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:
45 x’s
 1991 141 x’s
 2002 500 x’s
 1973
In 1996, Business Week published the findings of an income
survey of the top two executives at 362 of the nation's largest
companies.
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%
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 Weber
1864-1920
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 ideas
Religion as source of ideas
leading to capitalism
The
Protestant Ethic
The 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 Capitalism
 Protestant
ethic established a rational
approach to the unlimited pursuit of
profit = capitalism
Weber’s Multidimensional
View of Inequality
Class
Status
Power/Party
Weber’s view of the future
Inequality
is inevitable
Iron Cage of Bureaucracy
Structural Functionalist Approach
to Inequality (Davis and Moore)
View
of Society
Explanation of Inequality
Flaws 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
 Motivate
is necessary
best people to take appropriate
positions
 Insure people perform once in those
positions
 How
are positions ranked?
 Functional
importance
 Scarcity of skill
Explanation of Inequality
 How
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
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Flaws of Davis & Moore’s
Theory
 Leads
to blaming the victim.
 Equality of opportunity is implied
 Training is not always costly
 Over-emphasizes the value of economic
rewards
 Most important jobs are not always
highly rewarded (and vice versa)
 Who gets to decide which jobs are the
most functionally important?
Useful Insights
 Understanding
of the importance of
occupation to the placement of
individuals in society
 Taps into our notion of how things
should work--meritocracy
Marx
Inequality
Class
Consciousness
Conflict
Communism
Weber
Inequality
Change
Rationality
Conflict
Change
Rationality
Three Perspectives on How
Society is Divided
Capitalist
(Bourgeoisie)
Class Status Party
Hierarchy of Positions
Weber
Davis and Moore
Worker
(Proletariat)
Marx