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What is social stratification? » Marxism - poverty trap and reserve army of labour

What you'll learn this session

Study time: 30 minutes

  • The concept of social stratification and its importance in sociology
  • Key principles of Marxist theory and class analysis
  • The poverty trap - what it is and how it affects people
  • The reserve army of labour and its function in capitalist economies
  • Real-world examples and case studies of these concepts
  • How to apply Marxist concepts to analyse modern social issues

Introduction to Social Stratification

Social stratification refers to the way society is organised in layers or strata, with some groups having more power, wealth and status than others. It's like a layer cake, with different groups stacked on top of each other based on their access to resources and opportunities.

Key Definitions:

  • Social Stratification: The ranking of individuals or groups into social layers based on factors like wealth, power and status.
  • Social Class: A group of people who share similar economic and social positions in society.
  • Social Mobility: The movement of individuals or groups from one social position to another.
  • Inequality: Unequal distribution of resources, opportunities and rewards in society.

📈 Why Stratification Matters

Social stratification affects nearly every aspect of our lives - from the schools we attend and the healthcare we receive to our job prospects and life expectancy. Understanding stratification helps us make sense of inequality and consider how society might be organised differently.

📝 Different Perspectives

Sociologists have different views on why stratification exists. Functionalists see it as necessary for society to function properly. Marxists view it as exploitation. Weberians consider multiple dimensions of inequality. In this session, we'll focus on the Marxist perspective.

Marxism and Class Analysis

Karl Marx (1818-1883) was a German philosopher, economist and sociologist who developed a powerful critique of capitalism. His ideas have been hugely influential in sociology, economics and politics.

According to Marx, society is divided primarily into two main classes:

💪 The Bourgeoisie

The capitalist class who own the means of production (factories, land, resources). They make profit by exploiting workers' labour.

👷 The Proletariat

The working class who must sell their labour to survive. They create value through their work but receive only a fraction of it as wages.

Class Conflict

Marx believed that the relationship between these classes is inherently exploitative and would eventually lead to revolution.

The Poverty Trap

The poverty trap is a concept that describes how difficult it is for people to escape poverty once they're in it. It's like being stuck in quicksand - the harder you try to get out, the more systems and structures seem to pull you back in.

How the Poverty Trap Works

From a Marxist perspective, the poverty trap isn't an accident - it's a feature of capitalism that helps maintain the class system. Here's how it operates:

  • Low wages: Workers are paid the minimum needed to survive, making it difficult to save or invest in education or skills.
  • Debt cycles: People on low incomes often need to borrow money to cover basic needs, trapping them in cycles of debt.
  • Benefit traps: Welfare systems can create situations where earning more means losing benefits, so people aren't better off working more.
  • Educational barriers: Quality education is often less accessible to poorer communities, limiting social mobility.
  • Health inequalities: Poorer people often have worse health outcomes, which can limit their ability to work and earn.

Case Study Focus: Zero-Hours Contracts

In the UK, over 1 million workers are on zero-hours contracts. These contracts don't guarantee any hours of work, making income unpredictable. Workers often can't plan financially, access credit, or rent homes. From a Marxist perspective, these contracts benefit employers (bourgeoisie) by maximising flexibility and minimising obligations to workers (proletariat). They're a modern example of how employment structures can trap people in poverty despite being employed.

The Reserve Army of Labour

The "reserve army of labour" is another key Marxist concept. It refers to the pool of unemployed or underemployed workers that exists in capitalist economies. Marx argued that this group serves several important functions for capitalism.

Functions of the Reserve Army of Labour

According to Marxist theory, the reserve army of labour:

💰 Keeps Wages Down

When there are many unemployed people competing for jobs, employers can offer lower wages. Workers are less likely to demand higher pay when they know others are waiting to take their job.

🔁 Provides Flexibility

Businesses can quickly hire more workers during economic booms and lay them off during downturns. This allows the capitalist system to expand and contract as needed.

The reserve army includes several groups:

  • The floating reserve: Workers who move in and out of employment as the economy changes
  • The latent reserve: People who could work but aren't currently in the labour market (e.g., students, homemakers)
  • The stagnant reserve: People with irregular employment, often in precarious or part-time work

Connecting the Concepts

The poverty trap and the reserve army of labour work together in Marxist theory. The reserve army helps keep wages low, which contributes to the poverty trap. Meanwhile, the poverty trap ensures there's always a supply of desperate workers for the reserve army.

💡 Modern Examples

Today, we can see these concepts at work in the gig economy, where workers have few protections and unstable incomes. Companies like Uber or Deliveroo can draw on a large pool of potential workers, keeping pay rates low and working conditions precarious.

🔬 Critical Thinking

Not everyone agrees with Marx's analysis. Some argue that capitalism has created unprecedented prosperity and that poverty has declined globally. Others suggest that class is just one form of inequality alongside gender, race and other factors.

Case Study Focus: In-work Poverty in the UK

In 2022, around 13% of UK workers were living in poverty despite having jobs. This challenges the idea that employment is a guaranteed route out of poverty. Marxists would argue this shows how the system keeps workers in a precarious position - employed but struggling, with little power to demand better conditions. The working poor form part of the "stagnant reserve" in Marx's theory - neither fully employed with security nor completely unemployed.

Applying Marxist Analysis Today

While Marx was writing in the 19th century, his ideas continue to provide useful tools for analysing modern society. Here are some ways to apply Marxist concepts to contemporary issues:

  • Wealth inequality: Consider how wealth is becoming increasingly concentrated. In 2022, the richest 1% owned more than 40% of the UK's wealth.
  • Gig economy: Analyse how new forms of work might represent modern versions of the reserve army of labour.
  • Automation: Think about how technology might change class relationships as more jobs become automated.
  • Global inequality: Apply Marxist ideas to understand relationships between wealthy and poorer nations.

Summary

Social stratification is the way society is organised in layers, with some groups having more resources and opportunities than others. Marxism provides a powerful framework for understanding stratification through class analysis.

The poverty trap describes how systems and structures make it difficult for people to escape poverty. The reserve army of labour refers to the pool of unemployed or underemployed workers that helps keep wages down and provides flexibility for employers.

These concepts help us understand why inequality persists and how economic systems shape people's life chances. Whether or not you agree with Marx's solutions, his analysis highlights important questions about fairness and power in society.

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