Karl Marx s Conflict Theory (Essay Sample)

Karl Marx’s Conflict Theory Student’s Name Institutional Affiliation Course Code & Title Professor’s Name Date Karl Marx’s Conflict Theory There is some application of Karl Marx's conflict theory to the present mortgage and financial crises. According to the conflict theory, society is constantly at war over scarce resources. The theory posits that dominance and power preserve social order, not agreement and conformity. It also holds that wealthy and powerful people try to maintain their position by any means necessary, most notably through repressing the weak and helpless (Prerna, 2020). Besides, conflict theory's fundamental tenet is that members of society will compete with one another to gain the most wealth and influence possible. Therefore, it focuses on conflicts between different social classes, such as those caused by resource shortages and unequal distribution between employees and factory owners, who are wealthy individuals. Excessive and unchecked capitalism-related greed has contributed to the current financial meltdown and mortgage crisis. For instance, practices like predatory lending were made possible by the financial sector's deregulation and the absence of regulatory control of financial institutions, ultimately generating the crisis (Ilegbinosa, 2019). In addition, the industry's deregulation enabled the development of sophisticated financial tools like derivatives, which many people feel played a significant role in the crisis. Marx's conflict theory holds that the instability of the capitalist system itself is what led to the current financial crisis. Given the long period of worldwide financial stability and expansion that preceded the crisis, starting in the mid-to-late 1980s and now recognized as the "Great Moderation," several U.S. banking officials, public officials, and economists felt that significant economic uncertainty was a thing of the past. Almost everyone was significantly impacted by this confidence as well as the environment. Similarly, this stressed deregulation and the capacity of banking firms to regulate them. Because of ...