2 - Capitalism correlates to poverty

• Marxists believe poverty is an inevitable consequence of capitalism, from a radical standpoint.
• The bourgeoisie are exploiting the proletariat by extracting surplus labour value from them, making the working class poor and as capitalism develops, workers are pauperised and immiserated leading to revolution.
• Westergaard and Resler


  Suggest inequality is central to capitalism. Poverty is a structural problem and other theories blaming individuals or subcultures are part of bourgeoisie ideology to deflect blame.
• Harrington


  Globalisation of capitalism led to certain groups plunged into poverty as they are useless to capitalism: elderly, uneducated, immigrants, single-parents and mentally ill.
• Kincaid


  Poverty is necessary for capitalism as the existence of 'the poor' disciplines and frightens other working class into working hard. It is deliberate. Money is motivation to work, unequal rewards motivate competition and require highly motivated workers in capitalism.
• Low wage sector benefits employers by:

  • Reserve army of labour - migrant, female workers and the very poor can be laid off in times of economic slump and in peaks, they can be recruited for the labour force.
  • Divides the working class
  • Drives down benefit levels (motivation) - bare sustinence so the state will not abolish poverty. Only the abolition of capitalism will.
• Evaluation:

  • Fails to explain why some groups more prone to poverty (ethnic and gender inequality)
  • Townsend argues state can influence labour market in ways opposed to interest of capitalism like minimum wage and Equal Pay Act.