Theories of inequality: neo-Marxist

Definition of Neo-Marxism

Neo-Marxism is an extension and revision of classical Marxism theory, incorporating elements from other intellectual traditions such as psychoanalysis, existentialism, and Weberian sociology.

Theoretical Propositions on Inequality

Central to Neo-Marxist thought is the belief that inequality stems from capitalist economic structures where production and economic resources are privately owned.
Profit maximisation for capitalists results in exploitation of the working class, perpetuating class inequalities since capitalists seek to suppress wages to increase their profits.
Classical Marxism’s deterministic approach is critiqued, with Neo-Marxists arguing for a greater role of human agency and acknowledging that individuals can resist and challenge their circumstances, rather than just being products of them.
Neo-Marxists stress ideology and culture as crucial in maintaining inequality. They argue that the ruling class manipulates cultural forms (media, religion, education etc.) to secure consent for its dominance or ‘hegemony’.

Critique of Capitalism

Neo-Marxists contend that capitalism is an inherently unstable system prone to crises due to overproduction, underconsumption, and an over-reliance on finance.
However, rather than classical Marxists who believe capitalism will inevitably collapse, Neo-Marxists argue that it constantly reinvents itself in response to crises, consequently leading to different forms of inequality.
They believe that the capitalist system gives rise to “global inequality” with wealthy countries reproducing conditions that keep developing nations impoverished.

Forms of Resistance

Neo-Marxists see resistance to capitalist oppression as more complex than just class struggle between workers and bosses, encompassing broader struggles around race, gender, and ecology that challenge inequalities created by capitalism.

Evaluation of Neo-Marxist Theory

While Neo-Marxism provides a comprehensive critique of capitalism and its resultant inequality, it has been criticised for its overemphasis on economic factors, often downplaying the role of other social divisions and factors in creating and sustaining inequality.
Critics also point out the lack of empirical evidence to support some of the Neo-Marxist claims, such as the idea of capitalists manipulating culture to maintain their dominance.