- Reading 4.3 clearly distinguishes between two primary social classes: owners and
employees. Owners possess the wealth and assets of society, living off
investments such as stocks, rents, and other forms of property income. On the other hand,
employees must work to earn a living, receiving wages, salaries, or fees for
their labor.
For example, Jeff Bezos, the founder of Amazon, is a member of the owning class, as he profits
largely from investments and the labor of his employees, who generate wealth for his company.
Conversely, a factory worker at Amazon is part of the employee class, working for wages but
creating much more value than what they earn.
This distinction is interesting because some small business owners might technically fall under the “owners” category but often don’t enjoy the same security or
influence as more prominent corporate owners. As the reading mentions, these small proprietors are more vulnerable to being outcompeted or even pushed out of the market by large corporations..
This distinction between owners and employees and labor exploitation (e.g.,workers being paid significantly less than the value they create) is a foundational concept of
capitalism. Owners profit by paying workers a fraction of what their labor produces, amassing
great wealth through this process. Despite the different income levelsamong employees, the
key factor remains that those who control capital benefit from the labor of others. - The quote by Adam Smith on page 28, “Labor… is alone the ultimate and real standard by
which the value of all commodities can at all times and places be estimated and compared,”
emphasizes that labor is the true source of value in any product or commodity. Smith argues
that the effort, time, and skills workers put into producing goods and services give those
items their value, not just the money that is exchanged for them.
In essence, without the input of human labor, commodities wouldn’t exist in a usable or
profitable form. For example, a tree in a forest doesn’t have much value on its own. Still, through
the labor of cutting it down, processing it into lumber, and eventually turning it into furniture,
value is added. This idea asserts that human work is at the core of economic production and
value creation, making labor a fundamental factor in any economic system.
Smith’s argument suggests that while the market price (monetary value) might fluctuate based on
supply, demand, and other factors, the real value of a commodity is directly tied to the labor that
went into creating it. This underscores the critical role of workers in generating wealth, even
though the profits often go to the owners of capital rather than the laborers themselves.
- The reading presents a critique of the concept of class as identity, suggesting that while class
can be an aspect of one’s identity, it should not be conflated with other identity categories like
race or gender.
One of the core arguments is that class operates differently within the social structure compared
to race or gender. For instance, while race and gender are individual attributes that affect
personal identity and social interactions, class is a relational and structural concept. It is defined
by one’s position within the capitalist system and the economic relations that come with it. This
distinction is critical because it highlights how class is embedded in and influenced by systemic
power dynamics rather than just personal experience.
The reading also critiques the liberal notion that class can be simply ranked or categorized like
socioeconomic status. This perspective can reduce class to just another form of identity politics,
focusing on individual status rather than systemic exploitation and power. The socialist
perspective, however, argues that class encompasses a broader systemic structure—capitalists
and workers have fundamentally different interests and power dynamics. This structural
relationship shapes societal functions and the distribution of resources, influencing various forms
of social inequality.
Furthermore, the reading suggests that addressing other forms of oppression, like racial or gender
inequality, requires acknowledging and challenging the capitalist system that underpins these
inequalities. The capitalist structure creates and maintains power imbalances, which affect how
different forms of identity interact and are experienced in society.
In summary, the reading emphasizes that while class can influence individual identity, it operates
within a different framework than other identity categories. Understanding class as a
structural and systemic issue helps clarify why addressing class power is essential for achieving
broader social justice and addressing various forms of inequality. - Reading 4.4 argues that class structures are built around a “close form of dependency,” which
refers to the interdependence between different social classes within the capitalist system. This
dependency is not merely economic but also structural, where the existence and functioning of
one class are intimately connected to and dependent on the other.
The “close form of dependency” means that the economic well-being of the working class relies
on the wealth and profits generated by the capitalist class. For instance, workers depend on
capitalists for employment and wages, while capitalists depend on workers to produce goods and
services that drive their profits. This mutual reliance creates a structured relationship where each
class’s position and power are defined by the other.
An example of this dependency can be seen in the manufacturing sector. Workers in factories
depend on capitalists for their jobs, while capitalists rely on workers to operate machinery and
produce products that are sold for profit. This relationship underscores the economic and social
interdependence between the two classes, highlighting how their roles and statuses are closely
linked within the capitalist system.
