ABSTRACT
This chapter argues that an approach to capitalist development structured largely in terms of Marxist theory, yet one which adopts certain concepts from orthodox social science, and offers a more rewarding framework for comprehending the relationship between economic development and income distribution. It discusses criticizing orthodox notions of economic growth and well-being, paying particular attention to deficiencies of income as the sole measure of these phenomena. The chapter examines the historical relationship between growth and inequality in the developed world, demonstrating that capitalism has at every stage in its development been plagued by problems of inequality in income, wealth, and the quality of life. It shows how Marxist theoretical concepts—particularly those of class, surplus value, and power—illuminate and explains this persistent linkage between capitalist production and inequality. The chapter explores the relationship between growth and equity in the developing countries, explaining why the social position of the majority has deteriorated in the course of capitalist development.
