Marxist Perspectives on the Welfare State

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Marxist perspectives criticize the inequities of the market, but also he ineffectiveness of the welfare state in challenging or combatting these inequalities.

Marxism, Socialism and Communism

Some of these critiques are rooted in the ideas of Karl Marx, a 19th-century economist and philosopher. Marx argued that capitalism is an exploitative system where the working class is taken advantage of by the capitalist class through the labor market. He believed this exploitation would eventually lead to a revolution, replacing capitalism with socialism. In a socialist state, the people would collectively own the means of production, and everyone’s needs would be met.

Marxists are typically socialists, though some differentiate between socialism and communism. Communism refers to a state where the need for government control fades because the people fully control production.

Marxists see socialism or communism as better alternatives to both capitalist markets and the welfare state. However, their ideas are often criticized for being overly idealistic, as they don’t offer clear steps to achieve such a society. Instead, they emphasize the need for revolutionary, rather than gradual, change.

This revolutionary approach has not gained widespread support in Britain or other Western European countries. While some countries, such as the USSR and post-World War II Eastern European nations, experimented with communist rule, these regimes mostly collapsed in the 1980s. Today, only countries like China and Cuba maintain modified versions of communism.

Marxist Criticism of the Welfare State

Marxist scholars have focused more on critiquing welfare capitalism than advocating for socialist revolutions. Marx himself analyzed early welfare reforms, such as 19th-century factory legislation, as part of his critique of capitalism. However, modern academics have taken this further.

In the 1970s, Gough and Ginsburg offered strong critiques of the British welfare state from a Marxist perspective.

Ginsburg (1979) argued that welfare institutions serve capitalism by controlling and suppressing people. For instance, social security programs stigmatize claimants and push them into low-wage jobs.

Gough (1979) expanded on this, suggesting that the welfare state has a dual role. On one hand, it reflects working-class efforts to challenge capitalism. On the other hand, it fails to adapt to changing economic and political circumstances. For example, he argued that state education and healthcare prepare workers for jobs and keep them healthy for work, ultimately benefiting capitalism.

This analysis suggests that the welfare state shapes citizens to meet the needs of capitalism. Even the gains achieved by the working class are often concessions granted by the political right, which supports free-market capitalism (Wall, 2011).

An image showing schools and hospitals feeding into the capitalist system

Contradictions in Welfare: Accumulation vs. Legitimation

Marxist analysis highlights contradictions in the welfare state. O’Connor (1973) described these as the “accumulation” and “legitimation” functions. On one hand, welfare supports the market by allowing capitalism to grow and accumulate wealth. On the other hand, it legitimizes capitalism by providing social protections for citizens.

However, these goals often conflict. For example, during economic crises like the 1970s downturn, the 2008 financial crisis, and the COVID-19 pandemic, governments must balance these functions. Supporting accumulation often means cutting welfare spending, while legitimation may require additional welfare support during crises. For instance, governments increased welfare support during the COVID-19 pandemic, but these measures may lead to future budget cuts.

Ultimately, Marxists argue that the welfare state is both contradictory and unstable. It cannot fully resolve the tensions between supporting capitalism and protecting citizens.

Post-Marxism and the Evolving Critique of Capitalism

The Marxist critique of welfare has been more influential than calls for communist revolution, especially as modern capitalist societies have evolved. Changes in production, class structures, and political systems have made Marx’s ideas seem less relevant to some.

This has led to the development of post-Marxism or neo-Marxism. These perspectives adapt Marxist ideas to account for modern realities. For example, the workforce is now more divided, with many people unemployed or in insecure jobs. This makes the traditional role of the working class in overthrowing capitalism less feasible. Instead, post-Marxists suggest that future change will focus less on industrial production and more on broader societal shifts in a post-industrial economy.

Despite these changes, Marxist critiques of the welfare state remain relevant. They highlight how welfare systems fail to address the deeper problems of capitalism. This ensures that Marxist ideas still appeal to those on the left who seek alternatives to capitalism and welfare as it exists today.