Conflict Theory

Parents have a theory that kids start a conflict just when the school bus is about to arrive, or when they want to embarrass their parents in front of other people. But the official conflict theory was suggested by Karl Marx in the mid-1800s, along with his concept of communism. He believed society is always in a state of conflict, thanks to limited resources. And who controls most of these resources? The bourgeoisie, of course. Those with the wealth and power will do anything to hold onto it, he believed, including keeping the working class and the poor in their place. He thought the lower classes would eventually get fed up with their plight and start to revolt...i.e. start a conflict.

A conflict theorist might use as an example a factory owner and his workers during a period of high unemployment. The owner might think he can treat the workers however he pleases and pay them a minimum wage, considering them to be almost like a replaceable commodity. Because like...where else are they going to go?

The conflict theory has been used to help explain racism, discrimination, wars, poverty, and even domestic violence. As the groups being controlled or discriminated against gain more power (they usually outnumber the wealthy), the scales begin to tip in their favor.

Hopefully the kids won’t be gaining any more power, however. They're spoiled enough as it is.

Find other enlightening terms in Shmoop Finance Genius Bar(f)