Neo-Marxism developed as a result of social and political problems that traditional Marxist theory was unable to sufficiently address. This iteration of thinking tended toward peaceful ideological dissemination, rather than the revolutionary, and often violent, methods of the past. Economically, neo-Marxist leaders moved beyond the era of public outcry over class warfare and attempted to design viable models to solve it. There are many different branches of neo-Marxism often not in agreement with each other and their theories. Following World War I, some neo-Marxists dissented and later formed the Frankfurt School. Toward the end of the 20th century, neo-Marxism and other Marxist theories became anathema in democratic and capitalistic Western cultures, where the term attained negative connotations during the Red Scare. For this reason, social theorists of the same ideology since that time have tended to disassociate themselves from the term neo-Marxism. Examples of such thinkers include David Harvey and Jacque Fresco, with some ambiguity surrounding Noam Chomsky, who has been labelled a neo-Marxist by some, but who personally disagrees with such assessments. Some consider libertarian socialism an example of rebranded neo-Marxism.
can maintain selling prices at high levels while still competing to cut costs, advertise and market their products. However, competition is generally limited with a few large capital formations sharing various markets, with the exception of a few actual monopolies. The economic surpluses that result cannot be absorbed through consumers spending more. The concentration of the surplus in the hands of the business elite must therefore be geared towards imperialistic and militaristic government tendencies, which is the easiest and surest way to utilise surplus productive capacity. Exploitation focuses on low wage workers and groups at home, especially minorities. Average earners see the pressures in drive for production destroy their human relationships, leading to wider alienation and hostility. The whole system is largely irrational since though individuals may make rational decisions, the ultimate systemic goals are not. The system continues to function so long as Keynesianfull employment policies are pursued, but there is the continued threat to stability from less-developed countries, throwing off the restraints of neo-colonial domination.
introduced the concept of economic surplus to deal with novel complexities raised by the dominance of monopoly capital. With Paul Sweezy, Baran elaborated the importance of this innovation, its consistency with Marx's labor concept of value and supplementary relation to Marx's category of surplus value. According to Baran's categories:
Actual economic surplus: "the difference between what society's actual current output and its actual current consumption." Hence, it is equal to current savings or accumulation.
Potential economic surplus: "the difference between that output that could be produced in a given natural and technical environment with the help of employable productive resources, and what might be regarded as essential consumption."
Baran also introduced the concept of planned surplus—a category that could only be operationalized in a rationally planned socialist society. This was defined as "the difference between society's 'optimum' output available in a historically given natural and technological environment under conditions of planned 'optimal' utilization of all available productive resources, and some chosen 'optimal' volume of consumption." Baran used the surplus concept to analyze underdeveloped economies in his Political Economy of Growth.
Neo-Marxist feminism
Some portions of Marxist feminism have used the neo-Marxist label. This school of thought believes that the means of knowledge, culture, and pedagogy are part of a privileged epistemology. Neo-Marxist feminism relies heavily on critical theory and seeks to apply those theories in psychotherapy as the means of political and cultural change. Teresa McDowell and Rhea Almeida use these theories in a therapy method called "liberation based healing," which, like many other forms of Marxism, uses sample bias in the many interrelated liberties in order to magnify the "critical consciousness" of the participants towards unrest of the status quo.