9 Reasons of Relative Equality in the Late Industrial Society
Nine Reasons for Relative Equality in Industrial Society
(from Kerbo, pp. 72-75)
Inequality in human society reached its peak in late agrarian society. Since then, as the industrial society matured, “the trend has been altered” (p. 72). Part of the reason is that the rich have given substantial concessions to the poor in the form of higher taxes for the wealthy and social security for the poor, or higher pay for workers. What happened? What made the rich, upper class in the advanced societies make such concessions to the poor people? Kerbo suggests nine reasons.
1) “Complexity of machine and organization technology”
Since the modern technology is too complex, “no individual or even small group of individuals can possess the knowledge needed to run the vast industrial enterprise. Thus, elites have had to make concessions to their authority for the sake of efficiency, and these concessions have resulted in greater rewards for subordinates” (p. 73).
2) For “increased productivity”
Making concessions to workers costs less than fighting against them.
“Allowing lower classes more of economic surplus” can (1) dissuade them from waging “industrial sabotage,” and (2) enlarge market since the poor will buy more goods with increased income (p. 74).
3) “Now, enough.” (A micro-economic explanation)
The rich have already amassed too much surplus, so they are no longer eager to earn more. They sometimes choose “reputation” or “honor” rather than more money. Using terms of microeconomics, for the rich, the “marginal utility” of social honor and reputation has exceeded that of wealth.
4) Reduced rate of population growth (especially for the lower classes)
The population growth rate among the poor has decreased resulting in more per capita returns for the poor from the increased products in the industrial society.
5) More pay for more skill
Advanced technology needs more skilled workers. To attract more skilled workforce, the employer should provide material incentive.
6) “The spread of a more egalitarian ideology and democratic systems” (p. 74)
During the revolution, the industrialists and merchants could seize power from the feudal nobility only with the help of the masses. Thus, to some extent, the bourgeoisie had to give them some concessions as rewards and for political stability.
7) “You should feed them before you make them die for you” (Total war)
Faced with international competition, the ruling class of each industrialized country had to take care of the well being and health of the poor people who might be conscripted as soldiers to fight for the “national interests” of “their” countries.
For example, it was between the Boer War and the First World War when a series of social reforms were enacted in Britain. At the beginning of the Boer War, the incredibly abject health conditions of the conscripted workers ignited political debates on the introduction of a public health system among the ruling elites (Semmel, Bernard. 1960. Imperialism and Social Reform: English Social-Imperial Thought 1895-1914. London: Ruskin House.).
Another example is the introduction of the progressive “income tax” in the United States. A progressive income tax is, nowadays, the most important tool for social redistribution of income from the rich to the poor. In the United States, it was first introduced during the Civil War, and abolished with the end of the war, and revitalized with the beginning of the First World War (Weismanm Steven R. 2002. The Great Tax Wars. New York: Simon & Schuster.).
8) Decreased inequality within nation, increased inequality between nations.
“The division of labor is becoming worldwide, with more of the lowest-paying jobs occurring in the less-developed nations, while advanced industrial societies benefit from high-tech and higher-paying jobs” (pp. 74-5).
9) Working class politics
Faced with politically active working class voters, political elites had no choice but to respond to their requests.
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