Beginning with an appraisal of the early twentieth century liberal social theorists, including Weber, Durkheim, Veblen and Mannheim, it demonstrates that the weakness of their approaches arose from a failure to comprehend adequately the nature of capitalism. It then outlines the state of the theory of ideology at the time and applies the concept in an analysis of contemporary schooling, concluding with a discussion of its political implications. The application of the theory of ideology offers important possibilities for a radical socialist strategy on education.