Marx’s Theory of Labor and the Labor Market under Neoliberal Globalization

• In Event: 398 - Section on Marxist Sociology Roundtable Session (one-hour).
  In Refereed Roundtable: Table 02. Globalization and Labor

Abstract

This paper stresses the centrality of Marx’s theory as an explanatory tool of the labor market and situation of labor under neoliberal globalization. According to dominant views, the free circulation of labor and capital is the most efficient vehicle for socio-economic growth and the creation of employment. Economic data show, conversely, that while profit has significantly increased over the last two decades, growth in employment has not materialized. Increases in productivity have not translated into increases in wages which have also stagnated. Conventional theories cannot explain the discrepancy between stagnating wages and increased labor productivity. Marx’s theory of labor, on the contrary, explains the compression of wages and the exploitation of labor by stressing the importance of the concept of the reserve army of labor. The mobilization of large segments of labor worldwide accompanied by process of production decentralization created conditions whereby distant labor pools have beeb placed in direct competition with each other. Additionally, this situation has neutralized pro-labor strategies traditionally adopted by unions. The result is an over exploitation of labor that fuels significant increases in profit and a distorted redistribution of wealth resulting in enhanced class polarization. Conventional instruments and theories can neither address nor explain this situation.

Authors

• Alessandro Bonanno, Sam Houston State University

• Robert J. Antonio, University of Kansas