The precariat are generally in low-income, insecure employment, rent rather than own their own homes and have low levels of social and cultural capital.
The precariat refers to people living and working usually in a series of short-term jobs without recourse to stable occupational identities or careers, social protection or relevant protective legislation.
The variety of jobs the precariat does varies enormously as this can include any type of agency work such as cleaning, or factory work, anyone working on a zero-hours contract doing delivery work for the likes of Amazon or Sports Direct and also technically self-employed ‘gig-economy’ workers such as Uber drivers or anyone working for Deliveroo.
The precariat includes a mixture of local people and migrants and the average age profile of this class is 50, according the Great British Class Survey.
Incomes are usually low for people in the Precariat, and crucially incomes are often not secure, meaning that people can go without work for days, weeks or even months and may have to periodically supplement their (lack of) income with benefits.
This class is also the least likely to own their own homes, the most likely to rent and they have the lowest levels of cultural and social capital.
The term Precariat links its members vulnerability to their structural location in society and the structural instability of a global labour market. It recognises that there is mobility and overcomes the idea of them being fixed outside ot the class system.
The precariat includes benefit claimants, most of whom claim temporarily in between periods of precarious short term work, the kind of work that is increasing rapidly in neoliberal Britain, and increasingly less of a stepping stone to more secure and better paid employment.
Many members of the precariat are caught in a cycle of entrapment: they are unable to find work which is long term enough and with prospects of progression for them to gain skills and progress up the career and income ladder, rather they move from one low-status job to a period of no job and then back into another low-status job.
The Underclass: misleading and derogatory
Charles Murray famously developed the concept of the ‘Underclass’ in the 1980s to designate a group of people beneath the class system and excluded from the social mainstream.
According to Murray the main features of the Underclass were a long-term dependency on benefits which spanned across generations such that younger people were socialised into an anti-work, high-crime and teen-pregnancy culture.
Research in the UK has shown that the existence of the Underclass is a myth, mainly because very few benefits claimants claim benefits long term, most are in either part-time or intermittent employment and claim to top-up their small incomes or short-term between periods of unemployment, so there is no group of people beneath the class system.
However the mainstream media has a long history of perpetuating the myth that there is a ‘dangerous class’ of poor people who are work shy, criminal and abuse the benefits system.
When the Great British Class Survey was conducted, for example, there were a lot of documentaries about benefits claimants such as Benefits Street which reinforced the idea that there was an underclass of lazy, determined welfare spongers.
The Precarait/ (mislabelled) Underclass are also loathed and laughed at by some in other sectors of the population, and we see this most obviously through the derogatory use of the Chav label.
The Precariat are seen as old fashioned, rigid and inflexible, and their ways of being are devalued, with many people believing that foreigners are better at filling low paid jobs in Britain rather than poor lazy British people.
It maybe because of the breaking down of the clear class boundaries between middle and working class that we denigrate the poor with more vigour – as if rallying against the bottom unites the rest of us and shores up our own identity as not one of them.
Culture, Identity and the Precariat
Despite the fact that many of the negative associations are due to right-wing bigotry and media stereotyping, the precariat know they are looked down on and they would rather stay among their own which unfortunately makes it more likely that the Precariat do, indeed, become something of an isolated and segregated class.
Many in the Precariat manage this by close identification with the local and through complicated and voracious notions of belonging which may manifest in what they wear, what they like and strong connection to their local communities.
The Precariat are so painfully aware of the level of social shame associated with their class that only 1% of Great British Class Survey respondents were from the Precariat, besides them making up 15% of the population. They wanted to avoid a process that involved putting them at the bottom.
The precariat have the lowest levels of cultural capital, they have a lot less knowledge about ‘high’ culture especially and would rather NOT go out to public venues to conspicuously consume such cultural products.
Rather they prefer to engage in activities either at home with close friends and families or in their local communities: cultural activities are more about the people less about social display.
Signposting and Sources
This material should be relevant to anyone studying the culture and identity option as part of their A-level in sociology.
This post was summarised from Savage (2015) Social Class in the 21st Century.
In this post I summarize some recent sociological research which suggests newspapers and ‘reality T.V. shows represent benefits claimants in a limited range of stereotypical ways, focusing on them as lazy, undeserving scroungers engaged in immoral, wreckless and criminal behaviour.
A lot of the research below also reminds us that media representations in no way reflect the reality of being unemployed and claiming benefits in the UK.
This research is relevant to the A-level sociology media topic: representations of social class.
Stereotypes of benefits claimants in newspaper articles
Baumberg et al’s (2012) research ‘Benefits Stigma in Britain’ analysed a database of 6,600 national press articles between 1995-2011.
Baumberg et al found an extraordinarily disproportionate focus on benefit fraud: 29% of news stories referenced fraud. In comparison the government’s own estimate is that a mere 0.7% of all benefits claims are fraudulent.
Common language used to describe benefits as ‘undeserving’ included:
Fraud and dishonesty (including those such as ‘faking illness’);
Dependency (including ‘underclass’ and ‘unemployable’);
non-reciprocity/lack of effort (e.g. ‘handouts’, ‘something for nothing’, ‘lazy’, ‘scrounger’); •
outsider status (e.g. ‘immigrant’, ‘obese’)
Language used to describe benefits claimants as ‘deserving’ included:
need (‘vulnerable’, ‘hard-pressed’);
disability (‘disabled’, ‘disability’).
In general, Tabloid newspapers such (especially The Sun) focused on representing benefits claimants as undeserving, while broadsheets such as The Guardian were more likely to focus on representing benefits claimants as ‘deserving’.
NB – The Sun and The Mail are Britain’s two most widely circulated newspapers.
Stigmatising benefits claimants
Finally, the study found an increase in articles about benefits claimants which focused on the following stigmatising themes:
fraud
‘shouldn’t be claiming’ (for reasons other than fraud)
never worked/hasn’t worked for a very long time
large families on benefits
bad parenting/antisocial behaviour of families on benefits
claimants better off on benefits than if they were working
claimants better off than workers
immigrants claiming benefits
More neutral/ positive themes included:
compulsion of claimants (e.g. workfare, benefit conditionality)
cuts to benefits
need
As with the themes of ‘deserving’ and ‘undeserving’, Tabloids produced more stigmatising content than the the broadsheets.
Stereotypes of benefits claimants in reality T.V. shows
The number of such shows has exploded in recent years, but while they claim to provide and honest ‘realistic’ insight into lives of Britain’s benefit claimants and those living in poverty, Patrick and others argue they are sensationalised and present stereotypical representations of those on welfare.
If we look at the opening scenes for the first series of Benefits Street for example, these featured:
sofas on the pavement,
men on streets drinking cans of lager,
women smoking cigarettes on their doorsteps.
Overall such shows present benefits claimants as lazy shirkers who don’t want to work, and as people who are different to the hard-working majority.
Such shows emphasize the difference between the working majority (‘us’) and the workless minority (‘them’) and invites us to identify ourselves against benefits claimants, and possibly to see claiming benefits as something which is a choice, long term and morally wrong, rather than as something which is a necessity, usually a short term stop-gap before a return work.
This interview with Jordan, who took feature in Benefits Britain as a claimant offers an insight into how negative representations of the unemployed are socially constructed by media professionals:
Jordan claims that he usually keeps his flat tidy, but was told by the producers to deliberately not tidy it up before they came round to shoot, because it would make people feel more sorry for him.
He also claims that the media crew bought alcohol and cigarettes for the shoot, and told the ‘claimants’ that if they didn’t consume them before the shoot was over they’d take them away again, which led to lots of images of the cast drinking and smoking, when Jordan claims he would only usually do this on special occasions.
Relevance of this to A-level Sociology/ Media studies….
It’s easy to fall into the trap of thinking that newspapers and ‘reality’ T.V. present you with the reality of ‘life on benefits’ – in fact both of these sources present highly sensationalised accounts of what it’s like to actually be unemployed.
All of the above research is based on careful content analysis which picks out the main ways in which benefits claimants are stereotyped and thus represented in a limited way.
This post has only focused on representations, forthcoming posts will focus on why mainstream media professionals choose to represent benefits claimants in negative, stereotypical ways.
The Troubled Families Programme is a good example of a New Right social policy aimed at tackling criminality by targeting the so called underclass, it basically involves local authority workers intervening in so called troubled families in order to get them to take responsibility for their behaviour.
Following the riots in 2011, a new government initiative, the Troubled Families Programme (TFP), was announced, which set out to ‘turn around’ the 120,000 most ‘troubled families’ in England by May 2015.
The second phase of the TFP is now underway, following the ‘successful’ completion of Phase 1. The ‘massive expansion’ of the programme, to include 400,000 more ‘troubled families’, with wider-ranging criteria for inclusion, was announced in July 2013, when only 1 per cent of ‘troubled families’ had been ‘turned around’.
The concept of ‘troubled families’ came into the public consciousness in the aftermath of the English riots in 2011. Structural factors, such as poverty and racial inequality and injustice, were eschewed as possible factors behind the riots in favour of an explanation of ‘pure criminality’. Rioters were, in Cameron’s words, ‘people with a twisted moral code, people with a complete absence of self- restraint’. The blame for the riots, in the governments’ eyes, was split between poor parenting and anti-social families, and an overly generous welfare system that encouraged delinquency
In December 2011, the TFP was launched to help realise Cameron’s ambition to ‘turn round’ the lives of the 120,000 ‘troubled families’
The TFP then, was a policy response designed to not just address the problems caused by ‘troubled families’, but to also completely change the way the state interacted with them. Local authorities were expected to deliver the programme using a ‘family intervention’ approach (DCLG, 2012a) which had been rolled out to 53 areas in England under the previous Labour government’s Respect agenda. This approach sees a single ‘persistent, assertive and challenging’ (ibid) key worker working intensively with the family ‘from the inside out’ to address their problems, encouraging them to take responsibility for their circumstances.
Definitions
‘Troubled families’ were officially defined as those who met three of the four following criteria:
Are involved in youth crime or anti-social behaviour
Have children who are regularly truanting or not in school
Have an adult on out of work benefits
Cause high costs to the taxpayer
Payment by Results
All 152 local authorities in England ‘signed up’ to take part in the TFP which was to be run on a Payment by Results basis, with local authorities paid an attachment fee for each ‘troubled family’ they worked with, and a further allocation of funding dependent on certain outcomes being met.
Families were deemed to have been ‘turned around’ if:
Educational attendance improved above 85%, youth crime reduced by 33% and anti-social behaviour reduced by 60% across the family, or
A family member moved off out-of-work benefits and into continuous employment for three or six months, depending on the benefits they were initially receiving (ibid)
Claims for ‘turning around’ ‘troubled families’ were submitted by local authorities on a quarterly basis.
In August 2014, further detail was announced on the expansion of the programme. The ‘new’ ‘troubled families’ were families that met two out of the following six criteria:
Parents and children involved in crime or anti-social behaviour
Children who have not been attending school regularly
Children who need help
Adults out of work or at risk of financial exclusion and young people at risk of worklessness
Families affected by domestic violence and abuse
Parents and children with a range of health problems
In May 2015, the government published figures that showed that local authorities had ‘turned around’ 99 per cent of ‘troubled families’. David Cameron called it a ‘real government success’.
Criticisms of the Troubled Families Programme
The Centre for Crime and Justice is very sceptical about the success-claims made by the government . They actually suggest 10 reasons why we should be suspicious of the 99% success rate, which they call a social policy impossibility, especially in an era of government cuts, but I’m going to focus on just two criticisms, which taken together seem to strongly suggest that the government is simply lying about the effectiveness of the TFP – I mean as in not just manipulating statistics, just literally lying.
Firstly – ‘Troubled Families’ are not actually that troubled
How ‘troublesome’ are ‘troubled families’?
In contrast to the image of ‘troubled families’ as ‘neighbours from hell’ where drug and alcohol addictions, crime and irresponsibility ‘cascade through generations’, an interim report from the national evaluation of the TFP (DCLG, 2014b) shows that in ‘troubled families’:
85% ‘had no adults with a criminal offence in the previous six months
97% had children with one or zero offences in the previous six months
84% had children who were not permanently excluded from school
26% had at least one adult in work
93% had no adults clinically diagnosed as being dependent on alcohol
The only characteristics shared by the majority of ‘troubled families’ are that they are white, not in work, live in social housing and have at least one household member experiencing poor health, illness and/or a disability. Crime, anti-social behaviour and substance abuse, even at relatively low levels, are all characteristics which relate to small minorities of official ‘troubled families’.
Secondly, we don’t actually know if lives really been ‘turned around’?
When many ‘troubled families’ experience unemployment and poor health, and some of them also experience issues such as domestic violence, it is unclear to what extent their lives will have been ‘turned around’ by the programme.
Only 10 per cent of all ‘turned around’ families gained work and, as noted above, no detail is known about the quality or security of that work.
Changes to educational attendance and anti-social behaviour/crime levels within households accounted for around 90 per cent of the ‘turned around’ families, but government figures show that the majority of ‘troubled families’ had children who were already attending school and were not committing large amounts of crime or anti-social behaviour on entry into the programme.
Furthermore, we do not know how many ‘turned around’ families are still experiencing domestic violence, poor mental health or other issues such as poor quality or overcrowded housing, poverty or material deprivation, because this information has not been reported by the government.
Further problems with assessing the effectiveness of the TFP
Basically, we don’t have the data to make an accurate assessment, hence why I say above that the government must be lying when they claim a 99% success rate.
Also, at present we are also not aware of whether the families consider their lives to have been ‘turned around’ by their involvement with the programme, or whether their lives remained ‘turned around’ after the intensive support was withdrawn.
It should also be noted that many families will not know that they have been labelled as ‘troubled families’ because many local authorities choose not to inform them of this and use different names for their local programmes.
Charles Murray’s Underclass Theory – the idea that there is a ‘hardcore’ of a few hundred thousand families and individuals who are welfare-dependent and responsible a disproportionate amount of crime in society has a long history:
In Victorian times there was a concern about a ‘social residuum’, and shortly afterwards it was ‘unemployables’ who were the target of social reformers and politicians.
The Eugenics Society was influential in promoting the ‘social problem group’ in the 1930s and the idea of ‘problem families’ in the years following the Second World War.
In the 1960s, Oscar Lewis, the cultural anthropologist, popularised the heavily racialised ‘culture of poverty’ theory in the USA.
Sir Keith Joseph, former Conservative MP, raised the issue of a ‘cycle of deprivation’ in the 1970s.
In the 1980s and 1990s, American academic Charles Murray suggested that a ‘plague’ had crossed the Atlantic in the form of an ‘underclass’.
New Labour expressed concern about 2.5% of people who were ‘socially excluded’ in the late 1990s and early 2000s.
The development of the Respect agenda in the 2000s raised the issue of ‘problem families’ once again.
However, these ideas have flourished, despite no robust evidence which supports the idea of an ‘underclass’, whatever it is called. Professor David Gordon, who led the recent Poverty and Social Exclusion in the United Kingdom study, the largest ever research project of its kind, has offered the following view of such concepts:
These ideas are unsupported by any substantial body of evidence. Despite almost 150 years of scientific investigation, often by extremely partisan investigators, not a single study has ever found any large group of people/households with any behaviours that could be ascribed to a culture or genetics of poverty … any policy based on the idea that there are a group of ‘Problem Families’ who ‘transmit’ their ‘poverty/deprivation’ to their children will inevitably fail, as this idea is a prejudice, unsupported by scientific evidence. (Gordon, 2011)
Prison statistics suggest the lower class commit more crime, which consensus theorists and right realists accept, but Marxists believe the crimes of the elite are hidden and yet more harmful.
In this post we examine the relationship between social class and crime.
According to available statistics, social class background is correlated with crime rates and victimisation rates. However, there are significant limitations with the statistics on social class and crime and we will examine these here.
We then apply some of the theories of crime and deviance to see how they explain the relationship between social class and crime:
Consensus theory explains the higher rates of working class crime in terms of differential access the working classes and middle classes have in relation to the legitimate opportunity structure, which generates different cultural responses
Interactionism broadly rejects the consensus theory arguing that the higher rates of working class crime are a social construction
Marxism recognises the fact that the high levels of working class crime are a social construction in that emphasises the role of crimogenic capitalism in generating crime.
Right Realism focuses our attention on the underclass, rather than the working class as the main cause of crime in society today, while left realism sees crime as an outgrowth of inequality and marginalisation, without blaming Capitalism per se as Marxists do.
Statistics on social class and crime
The UK government does not routinely collect statistics on the relationship between social class and crime. Instead, we have to rely on proxies for social class such as income, deprivation and education levels.
Prisoners are 3-4 times less likely to have GCSEs in English or Maths. This suggests a correlation between low levels of educational achievement and crime.
Those in deprived areas are more likely to be victims of crime.
Those in higher income households are more likely to be victims of crime.
Prisoners have low levels of educational achievement
50% of prisoners had literacy levels at Entry Level 3 or below, and 55% had numeracy skills at Entry Level 3 or below. (Level 1 is next, then Level 2, which is GCSE.)
Only 13% of prisoners have English at GCSE level, and less than 10% have maths. This compares to national GCSE pass rates in 2023 of 52% in English and 55% in maths.
Depending on whether you look at the general levels of deprivation in an area or household income, you get a different picture of the relationship between social class and crime.
The proportion of adults in England and Wales who were victims of all crime in the year ending to March 2023 was slightly higher in the most deprived areas compared to the least deprived areas. However, if we look at the statistics by household income we find that households with an annual income of £52000 or more have the highest rates of victimisation, and those with the lowest income the lowest rates of victimisation.
Victimisation rates for all crime:
Most deprived 20% of areas – 10.7%.
Least deprived 20% of areas – 9.8%.
Households with income £52 000 or above – 12.7%.
Households with income below £10 400 – 9.6%.
So it would seem that it is houses with the highest incomes in the most deprived areas that are most likely to be victims of crime.
Limitations with statistics on ‘social class’ and crime
The above statistics are proxies for social class, not actually measuring social class, only aspects of it.
Those in the least deprived areas or in lower income households may be less likely to report victimisation as they are more suspicious of middle class researchers compared to more middle class respondents.
Crime surveys may not ask about the types of crime the deprived are more likely to be victims of, such as health and safety at work breaches.
Where prisoners are concerned, from a Marxist perspective all classes commit crime but the middle classes and elite are less likely to get caught. Thus you would expect to see those with low educational achievement in prison, because these are the people the criminal justice system focuses on.
Consensus Theories, Social Class and Crime
Consensus theories generally accepted the fact that crime rates were higher among the lower social classes and set out to explain why – two theories which explicitly focused on the differences between working class culture and crime were Strain theory and Status Frustration theory.
Robert Merton: Strain Theory, Blocked Opportunities and Working Class Innovation
Robert Merton argued that crime increased when there was a strain (or gap) between society’s success goals (achieving material wealth) and the available opportunities to achieve those goals through legitimate means (having a well-paying job). Merton called this imbalance between goals and the ability to achieve them ‘anomie’.
Merton argued that crime was higher among the working classes because they had fewer opportunities to achieve material success through legitimate means and were thus more likely to adopt innovative cultural responses in order to achieve material success through criminal means – through burglary or drug dealing, for example.
Merton saw crime as a response to the inability of people to achieve material wealth, emphasising the role of material or economic factors.
Albert Cohen: Status Frustration and Working Class Subcultures
Albert Cohen put more emphasis on cultural factors (values and status) rather than material factors in explaining working class crime.
Cohen argued that working class boys strove to emulate middle-class values and aspirations, but lacked the means to achieve success. This led to status frustration: a sense of personal failure and inadequacy.
In Cohen’s view they resolved their frustration by rejecting socially acceptable values and patterns of acceptable behaviour. Because there were several boys going through the same experiences, they end up banding together and forming delinquent subcultures.
This delinquent subculture reversed the norms and values of mainstream culture, offering positive rewards (status) to those who were the most deviant. Status was gained by being malicious, intimidating others, breaking school rules or the law and generally causing trouble.
This pattern of boys rejecting mainstream values and forming delinquent subcultures first started in school and then becomes more serious later on, taking on the form of truancy and possibly gangs.
The main piece of sociological research which has specifically examined the relationship between the police and the social class background of offenders is Aaron Cicourel’s ‘Power and The Negotiation of Justice’ (1968)
Cicourel argued that it was the meanings held by police officers and juvenile officers that explained why most delinquents come from working class backgrounds, and that the process of defining a young person as a delinquent was complex, involving mainly two stages of interactions based on sets of meanings held by the participants.
The first stage is the decision by the police to stop and interrogate an individual. This decision is based on meanings held by the police of what is ‘strange’, ‘unusual’ and ‘wrong’. Whether or not the police stop and interrogate an individual depends on where the behaviour is taking place and on how the police perceive the individual(s). Whether behaviour is deemed to be ‘suspicious’ will depend on where the behaviour is taking place, for example an inner city, a park, a suburb. If a young person has a demeanour like that of a ‘typical delinquent’ then the police are more likely to both interrogate and arrest that person.
The Second Stage is that the young person is handed over to a juvenile delinquent officer. This officer will have a picture of a ‘typical delinquent’ in his mind. Factors associated with a typical delinquent include being of dishevelled appearance, having poor posture, speaking in slang etc. It follows that Cicourel found that most delinquents come from working class backgrounds.
When middle class delinquents are arrested they are less likely to be charged with the offence as they do not fit the picture of a ‘typical delinquent’. Also, their parents are more able to present themselves as respectable and reasonable people from a nice neighbourhood and co-operate fully with the juvenile officers, assuring them that their child is truly remorseful.
As a result, the middle class delinquent is more likely to be defined as ill rather than criminal, as having accidentally strayed from the path of righteousness just the once and having a real chance of reforming.
Cicourel based his research on two Californian cities, each with a population of about 100, 000. both had similar social characteristics yet there was a significant difference in the amount of delinquents in each city. Cicourel argued that this difference can only be accounted for by the size, organisation, policies and practices of the juvenile and police bureaus. It is the societal reaction that affects the rate of delinquency. It is the agencies of social control that produce delinquents.
Marxism, Social Class and Crime
Marxists argue that while working class crime does exist, it is a rational response to crimogenic capitalism. Moreover, all class commit crime, and the crimes of the elite are more harmful than street crime, but less likely to be punished.
Crimogenic Capitalism
Capitalism encourages individuals to pursue self-interest before everything else.
Capitalism encourages individuals to be materialistic consumers, making us aspire to an unrealistic and often unattainable lifestyle.
Capitalism in its wake generates massive inequality and poverty, conditions which are correlated with higher crime rates.
Marxist Sociologist David Gordon says that Capitalist societies are ‘dog eat dog societies’ in which each individual company and each individual is encouraged to look out for their own interests before the interests of others, before the interests of the community, and before the protection of the environment. If we look at the Capitalist system, what we find is that not only does it recommend that we engage in the self-interested pursuit of profit is good, we learn that it is acceptable to harm others and the environment in the process.
Marxists theorise that the values of the Capitalist system filter down to the rest of our culture. Think again about the motives of economic criminals: The burglars, the robbers, and the thieves. What they are doing is seeking personal gain without caring for the individual victims.
The Capitalist system is also one of radical inequality. At the very top we have what David Rothkopf calls the ‘Superclass’ , mainly the people who run global corporations, and at the very bottom we have the underclass (in the developed world) and the slum dwellers, the street children and the refugees in the developing world.
The Sociologist Zygmunt Bauman points out that the super wealthy effectively segregate themselves from the wealthy, through living in exclusive gated communities and travelling in private jets and armoured vehicles with security entourages. If people can afford it, they move to a better area, and send their children to private schools. However, this doesn’t prevent the poor and the rich from living side by side.
Marxists argue that the visible evidence of massive inequalities give people at the bottom a sense of injustice, a sense of anger and a sense of frustration that they are not sharing in the wealth being flaunted in front of them (the flaunting is the point is it not?) As a result, Capitalism leads to a flourishing of economic crime as well as violent street crime.
William Chambliss even goes so far as to say that economic crime ‘’represents rational responses to the competitiveness and inequality of life in capitalist societies”. As we have seen from previous studies. Drug dealers see themselves as innovative entrepreneurs. So internalised is the desire to be successful that breaking the law is seen as a minor risk.
Marxists hold that more egalitarian societies based on the values of the co-operation and mutual assistance, have lower crime rates.
Key Concepts
White Collar Crime: Crimes committed in the furtherance of an individual’s own interests, often against the corporations of organisations within which they work.
Corporate Crime: Those crimes committed by or for corporations or businesses which act to further their interests and have a serious physical or economic impact on employees, consumers and the general public. The drive is usually the desire to increase profits.
The Crimes of the elite are more costly than street crime
Marxists argue that although they are hidden from view, the crimes of the elite exert a greater economic toll on society than the crimes of the ‘ordinary people’. Laureen Snider (1993) points out that the cost of White Collar Crime and Corporate Crime to the economy far outweighs the cost of street crime by ‘typical’ criminals.
The Cost of Financial Crime (Fraud)
Organisations such as Corporate Watch and…. Multinational Monitor, suggest that Corporate Fraud is widespread. The General Accounting Agency of the USA has estimated that 100s of savings and loans companies have failed in recent years due to insider dealing, failure to disclose accurate information, and racketeering. The cost to the taxpayer in the USA of corporate bail outs is estimated to be around $500 billion, or $5000 per household in the USA.[1]
Case Study – Bernie Madoff’s $65 billion Ponzi scheme
In 2009 the disgraced financier Bernie Madoff was sentenced to the maximum 150 years in prison for masterminding a $65bn (£38bn) fraud that wrecked the lives of thousands of investors.
The US district judge Denny Chin described the fraud as “staggering” and said the “breach of trust was massive” and that a message was being sent by the sentence. There had been no letters submitted in support of Madoff’s character, he said. Victims in the courtroom clapped as the term was read out.
Madoff pleaded guilty to 11 counts of fraud, theft and money laundering. The sentencing, in what has been one of the biggest frauds ever seen on Wall Street, was eagerly anticipated. Described by victims in written testimony as a “thief and a monster”, Madoff has become an emblem for the greed that pitched the world into recession. Nearly 9,000 victims have filed claims for losses in Madoff’s corrupt financial empire.
Madoff masterminded a huge “Ponzi” scheme. Instead of investing client’s money in securities, it was held with a bank and new deposits used to pay bogus returns to give the impression that the business was successful. At the time of his arrest in December, he claimed to manage $65bn of investors’ money, but in reality there was just $1bn left.
Right Realists disagree with Marxists – Right Realists point to the underclass as being responsible for a disproportionate amount of crime in society.
Charles Murray and the Underclass
Charles Murray argued that changes to family structure was responsible for much of the increase in the crime rate in the 1970s and 80s – he largely attributes the growth of crime because of a growing underclass or ‘new rabble’ who are defined by their deviant behaviour and fail to socialise their children properly. The children of the underclass fail to learn self-control and also fail to learn the difference between right and wrong.
The underclass has increased because of increasing welfare dependency. Murray argues that increasingly generous welfare benefits since the 1960s have led to increasing numbers of people to become dependent on the state. This has led to the decline of marriage and the growth of lone parent families, because women can now live off benefits rather than having to get married to have children. This also means that men no longer have to take responsibility for supporting their families, so they no longer need to work.
According to Murray, lone mothers are ineffective agents of socialisation, especially for boys. Absent fathers mean than boys lack paternal discipline and appropriate male role models. As a result, young males turn to other, delinquent role models on the street to gain status through crime rather than supporting their families through a steady job.
Increasing crime is effectively a result of children growing up surrounded by delinquent, deviant criminal adults which creates a perfect crimogenic environment.
Unemployment and Crime
A recent comparison 4.3 million offenders in England and Wales whose names appeared in court records or the Police National Computer with separate benefits records held by the Department for Work and Pensions revealed that more than 1.1 million of the 5.2 million people claiming out-of-work benefits had a criminal record, or 22 per cent. This means that people who are claiming unemployment benefit are more than twice as likely to have a criminal record as those who are not. (Source: More than a fifth of people on unemployment benefits have a criminal record.)
NEETS and Crime
NEETS stands for young people aged between 16 and 24 Not in Education, Employment or Training. They first came to the government’s attention in the mid 2000s when they numbered 1.1m. At that time, a study by the Department for Education and Skills (DfES) conservatively estimated that each new NEET dropping out of education at 16 will cost taxpayers an average of £97,000 during their lifetime, with the worst costing more than £300,000 apiece.
Their impact on crime, public health and antisocial behaviour was so marked that the study found that a single 157,000-strong cohort of 16 to 18-year-old NEETs would cost the country a total of £15 billion by the time they died prematurely in about 2060. They are, says the study, 22 times more likely to be teenage mothers; 50% more likely to suffer from poor health; 60% more likely to be involved with drugs and more than 20 times more likely to become criminals.
Left Realism, Social Class and Crime
Left Realists Lea and young conclude that they can explain this using the following key concepts; relative deprivation, marginalisation and subculture.
Relative deprivation
Lea and Young argue that crime has its roots in deprivation, but deprivation itself is not directly responsible for crime – for example, living standards have risen since the 1950s, so the level of deprivation has fallen, but the crime rate is much higher today than it was in the 1950s.
Left Realists draw on Runciman’s (1966) concept of relative deprivation to explain crime. This refers to how someone feels in relation to others, or compared with their own expectations.
The concept of relative deprivation helps to explain the apparent paradox of increasing crime in the context of an increasing wealthy society. Although people are better off today, they have a greater feeling of relative deprivation because of the media and advertising have raised everyone’s expectations for material possessions – we are wealthier, but we feel poorer, and thus there is more pressure to get more stuff to keep up with everyone else, which generates historically high crime rates.
Marginalisation
This is where people lack the power or resources to fully participate in society. According to Left Realists marginalised groups lack both clear goals and organisations to represent their interests. Groups such as workers have clear goals (such as wanting better pay and conditions) and organisations to represent them (such as trades unions), and as such they have no need to resort to violence to achieve their goals.
By contrast, unemployed youth are marginalised – they have no specific organisation to represent them and no clear sense of goals – which results in feelings of resentment and frustration. Having no access to legitimate political means to pursue their goals, frustration can become expressed through violence.
Subculture
Left Realists see subcultures as a group’s collective response to the situation of relative deprivation, and they draw on Cohen’s theory of status frustration to explain how they emerge. There are many different subcultural adaptations to blocked opportunities, and not all result in crime – but those subcultures which still subscribe to the mainstream values of material wealth but lack legitimate opportunities to achieve those goals.
Revision Notes for Sale
If you like this sort of thing, then you might like my Crime and Deviance Revision Notes – 31 pages of revision notes covering the following topics:
Consensus based theories part 1 – Functionalism; Social control’ theory; Strain theory
Consensus based theories part 2 – Sub cultural theories
The Traditional Marxist and Neo-Marxist perspective on crime
Labeling Theory
Left- Realist and Right-Realist Criminology (including situational, environmental and community crime prevention)
Post-Modernism, Late-Modernism and Crime (Social change and crime)
Sociological Perspectives on controlling crime – the role of the community and policing in preventing crime
Sociological Perspectives on Surveillance
Sociological Perspectives on Punishment
Social Class and Crime
Ethnicity and Crime
Gender and crime (including Girl gangs and Rape and domestic violence)
Victimology – Why are some people more likely to be criminals than others
Global crime, State crime and Environmental crime (Green crime)
The Media and Crime, including moral panics
Signposting and Related Posts
This topic is taught as part of the Crime and Deviance compulsory unit with the AQA’s A-level Sociology specification.
An American Sociologist Charles Murray (1989) first coined the term ‘the underclass’ to refer to that group of people in America who were long term unemployed and effectively welfare dependent.
In the late 1980s he argued that the first generation of underclass were then having children and socialising the next generation of children into a culture of worklessness, thus creating a potential problem for US society because of this group being essentially cut off from ordinary social life and are not constrained by ordinary norms and values like ordinary working people. At that time, Murray looked across to Britain and warned us that in 20 years time we would be facing a similar problem….
The Underlcass in the United Kingdom
Three decades after Charles Murray coined the term ‘Underclass’ both national and local government departments in the UK were monitoring NEETS – a term which described 16-24 year old Not in Education or Training (NEETS).
One study by the Department for Education and Skills (DfES) in the late 2000s estimated that each new NEET dropping out of education at 16 will cost taxpayers an average of £97,000 during their lifetime, with the worst costing more than £300,000 apiece….
Their impact on crime, public health and antisocial behaviour was so marked that the study found that a single 157,000-strong cohort of 16 to 18-year-old NEETS would cost the country a total of £15 billion by the time they died prematurely in about 2060. They are, says the study, 22 times more likely to be teenage mothers; 50% more likely to suffer from poor health; 60% more likely to be involved with drugs and more than 20 times more likely to become criminals.
[In response to these figures Charles Murray commented…]
“When I was looking at Britain in the 1980s, the offspring of the first big generation of single mothers were small children,” said Murray, speaking from his home in America. “Now they are teenagers and young adults and the problems are exactly those that I was warning they would be — high crime rates and low participation in the labour force.
These people have never been socialised and they simply don’t know how to behave, from sitting still in classrooms to knowing you don’t hit people if you have a problem. It is very difficult, almost impossible, to take these people now and provide basic conditioning. There has always been a small underclass but now you have got a major problem, who are being called the NEETs.”
Media Reaction to NEETS
NEETs were classic moral panic material…
The media gleefully jumped on these government reports with this 2012 Daily Mail article delighting in reporting on the fact that there were almost one million NEETs in the country, and that they were ‘a lost generation’.
The New Right believe the traditional nuclear family is the ideal type of family. They support social policies which encourage nuclear families – they are pro marriage and against benefits for single mothers.
The New Right believe that the traditional nuclear family is best type of family, where both partners are married. The believe this is the most stable environment in which to raise children who will conform to the values of society.
The New Right see married families are better than cohabiting families because the former provide are less likely to break up. They are against single parent families and the Welfare State which they believe encourages higher levels of single parenthood.
The New Right View of the Family
In the 1980s New Right thinkers argued that government policy was undermining the family so policy changes were needed. Their thinking dominated policy development from 1979 to 1997.
Like Functionalists, the New Right hold the view that there is only one correct or normal family type. This is the traditional or conventional nuclear family. Again like Functionalists, the New Right sees this family as ‘natural’ and based on fundamental biological differences between men and women. In their view this family is the cornerstone of society; a place of contentment, refuge and harmony.
The New Right argue that the decline of the traditional family and the growth of family diversity are the cause of many social problems such as higher crime rates and declining moral standards generally.
The New Right believe that it is important for children to have a stable home, with married mother and father, and that ideally the wife should be able to stay at home to look after the children.
They believe that the introduction of the welfare state led to a culture where people depend on hand-outs from the state and that these encourage single parenting, which in turn, they argue leads to deviancy and a decline in morality.
New Right thinking encouraged the conservative government to launch the Back to Basics campaign 1993 to encourage a return to traditional family values. This was criticised for being unsuccessful, and hypocritical due some Conservative MPs being found to be having affairs or being divorced.
A more recent example of a social policy which the New Right would probably agree with is the The Troubled Families Programme – in which mainly underclass and lone-parent families were targeted with interventions to try and reduce such things as youth offending.
Evidence for ‘non-nuclear families’ being a problem
The main source of the evidence below is the Daily Mail Article below (1), supplement with comments (I won’t call it ‘data’) from the right wing think tank CIVITAS. (2 below).
52% of children born to cohabiting couples see their parents break up before their fifth birthday compared to only 6% of children born to married couples (1)
Children from broken homes are almost five times more likely to develop emotional problems.
Young people whose mother and father split up are three times as likely to become aggressive or badly behaved.
Lone-parent families are more than twice as likely to live in poverty as two-parent families.
Children from broken homes are nine times more likely to become young offenders.
NB: the political bias of CIVITAS means their research may not be objective and value free.
Criticisms of the New Right view of the family
The New Right relies on correlations between family types and social problems to conclude that children from families which have broken up suffer more social problems than children who remain in two parent families.
However, correlation doesn’t necessarily mean causation. It might not be lone parent families that ’cause’ children to have problems. It could be the higher levels of poverty suffered by lone parents, for example.
Similarly wealthier middle class couples are more able to afford the costs of getting married compared to poorer lower class couples, so any higher rates of breakdown among cohabiting. couples may be due to financial pressures as they have less money.
So we should be careful that the New Right view is a biased, middle class view. These are the people who themselves live in stable married nuclear families and this is the type of family they support.
Feminists argue that higher levels of relationship breakdowns and divorce are not necessarily bad. The fact that divorce is easier today is potentially good. This is because it is better for both a woman and a child to be on their own as a single parent family rather than being trapped in unhappy or abusive relationships.
Feminists further argue that gender roles are socially determined rather than being fixed by biology. The traditional gender roles which the New Right tend to support are oppressive to women.
The New Right stereotypes single parents and wages a moral panic against them. Most single parents are not welfare scroungers – most want to work but find it difficult to find jobs that are flexible enough so they can balance work and child care. They need appropriate social policies in place to enable them. todo this, rather than the pro-marriage policies the New Right support.
The New Right have exaggerated the decline of the Nuclear family. Most adults still marry and have children. Most children are reared by their two natural parents. Most marriages continue until death. Divorce has increased, but most divorcees remarry.
*That’s how flakey ‘research’ fro CIVITAS is, probably best NOT to trust it! Link provided here for historical context and entertainment purposes only!