Chapter 10 Discussion - Economics and Politics 99 unread replies.99 replies. 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: Injustice (two sets of rules fo.

1. Chapter 10 Discussion - Economics and Politics
99 unread replies.99 replies.
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
(

2. 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:

3. 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.
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.
“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.
Irrational belief in one’s status equals false consciousness of
status.
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.
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

4. 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

5. 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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