As described in Beach and Dovemark’s 2007 book, Education and the Commodity Problem, critical researchers have identified two fundamental roles for modern-day schools within capitalist states. These are the ideological and material roles and function, where schools produce ideologically compliant workers and consumers for a corporatist economy on the one hand, this is partly through a teaching and a curriculum, which is often hidden and informal; and, on the other form part of a corporate business plan for the accumulation of private capital in the welfare sector through mass outsourcing of welfare-State education provision and the wholesale commodification of education as a public service. This article presents a research method for investigating education in these circumstances. It is a method with a philosophical foundation not only for understanding contemporary educational empirical reality under neoliberal forms of capitalism, but also for developing critical consciousness for the transcendence and transformation of this condition toward a more just form of political economy and human existence. This research method draws from critical realism and its concept of explanatory critique as a way to forge a scientifically robust Marxist critical ethnography. In relation to this, the description of the method accompanies an overview of some of the basic principles and broadly accepted possibilities of and for ethnography and critical ethnography, followed by a presentation of what Marxist critical ethnography is and how Marxist critical ethnography functions as explanatory critique, respectively. This entails description of what explanatory critique is, and how it can be used to develop a philosophy of social science and an ontological base for ethnography. The aforementioned components together expand on a historical, theoretical, conceptual, and political development of ethnography as part of a Marxist approach to research and practice for social transformation.