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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 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:
1973 45 x’s
1991 141 x’s
2002 500 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 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 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 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
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
Inequality
Inequality
Change
Conflict
Class
Consciousness
Conflict
Change
Rationality
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

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Karl Marx Ideology what is he wanted what he said

  • 1. 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
  • 3. View of Society Economic context Political context Modes of production Means of production Relations of production Key assumptions for Marx
  • 4. 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.
  • 5. Plan for Action: Becoming Class Conscious Concentration and Communication Deprivation Economic Insecurity Alienation at Work Polarization Homogenization Organization and Struggle
  • 6. 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
  • 7. Useful Insights from Marx Marx was right that once in large factories workers would organize
  • 8. Useful Insights from Marx There is a growing gap between upper and lower classes, e.g. CEO salary compared to worker salary: 1973 45 x’s 1991 141 x’s 2002 500 x’s
  • 9. 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.
  • 10. Useful Insights from Marx Class conflict does exist Trends in the deskilling of American workers
  • 11. 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%
  • 12. 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).
  • 14. Weber’s Approach to Inequality Weber’s view of society. Weber’s multidimensional view of inequality. Weber’s outlook on the future.
  • 15. 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
  • 16. 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)
  • 17. The Emergence of Capitalism  Protestant ethic established a rational approach to the unlimited pursuit of profit = capitalism
  • 18. Weber’s Multidimensional View of Inequality Class Status Power/Party
  • 19. Weber’s view of the future Inequality is inevitable Iron Cage of Bureaucracy
  • 20. 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)
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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?
  • 25. 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
  • 27. Three Perspectives on How Society is Divided Capitalist (Bourgeoisie) Worker (Proletariat) Marx Class Status Party Weber Hierarchy of Positions Davis and Moore