This chapter interrogates the complex relationship between economic deprivation and Islamist radicalisation, moving beyond simplistic poverty-terrorism myths to offer a structural Marxist analysis. Through comparative case studies of deindustrialized cities like Detroit and Karachi, it illustrates how capitalist development creates vast “reserve armies of labor,” producing the hopelessness that can become a fertile ground for extremist mobilization. The analysis links youth unemployment directly to Islamist extremist recruitment, particularly in the context of the failed promises of the Arab Spring in Tunisia and Syria. A central argument is that neoliberal austerity plays a crucial role by creating vacuums in social provision that extremist groups, particularly Islamist charities, adeptly fill to gain legitimacy and political influence. The chapter contrasts liberal explanations of deprivation, which focus on individual failings, with a Marxist understanding that sees deprivation as a necessary and actively produced outcome of capitalism. It also explores the existential crisis fostered by neoliberal individualism, arguing that Islamist extremist narratives offer a powerful sense of dignity, purpose, and heroic resistance to alienated individuals seeking meaning in a commodified world.