People define their economic position through ideas about the incomes and opportunities of others, therefore identities are influenced by income, whether we imagine peoples incomes to be in the middle or if we see it as between the rich and poor.
There are two main traditions within the concept of social class and its effect on identity. These traditions are in the works of Karl Marx (1818-1883) and Max Weber (1864-1920). While they differ in the understanding of class and society, they share views on classes structured out of economic relationships.
The Marxist theory of class shows that the class a person belongs to is a fundamental part of their identity. For Marx, society generated two main classes, a capital-owning class and a property less class. They called these the ruling class and the working class or the bourgeoisie and the proletariat. Class is rooted in the economic organization of production i.e. those groups who own factories, farms, coal mines or raw materials. These groups look after their own interests, live in similar surroundings and send their children to similar schools. Marx believed that class consciousness is particularly important to our understanding of identity. This is an awareness of a shared class interest and the existence of classes with opposing interests. Class consciousness would emerge through solidarity and collective action. For Marx, the key factor is private ownership of economic resources.
Max Webers theory saw class as important when forming an identity. Weber saw