Soc 442 Exam 2
1980s
$1 trillion in technology replacement
Neo-Classical Economics
*"trickle-down" economics *productivity up; wages up *without increasing wages, overcapacity *can't sell products *maximal production and sell everything being produced
Poverty Threshold
*$17,163 income for a family of 3 *Inability to obtain essentials of life (Social scientists say $25,000 is a better number; statistically more poor people than reported)
Is Walmart good for America? (first movie)
*$256 billion in sales *has "everything"; low prices *is vindictive when it comes to getting low prices-->will pull items from shelf if asking too much *prices always matter; no negotiation (they want what they want) *low cost items from Asia (global cost cutting and internal efficiency) *influx of cheap imported goods was used to raise profits--> 60-70% margins makes for easy revenue *Many American companies are being forced to outsource to compete and survive *Walmart has 6,000 suppliers (80% in Asia) *deals on production is for Walmart; not the consumer *loss of more than 1 million jobs to China since 1990 *Walmart= new form of world Capitalism (destroying all other companies) *Walmart does not have lowest prices around for items
1960s- united Auto Workers (UAW) and American Federation of Labor-Congress of Industrial Organizations (AFL-CIO)
**completely in favor of labor replacing technologies** Unions believed they would only replace unskilled labor, would create more technological work, and companies would retrain unskilled workers that were laid off by technology. *opportunities for retraining were far and few *Unions did not understand who would control the means of production
Labor Management Confrontation
*1945-1955 *most concentrated wave of management strikes in history (33,000 strikes) Union workers had more control over factories than corporate America (walking out could cripple factories). In order to gain or regain control over production, corporations invested in research and development of labor replacing technology, used as a way to eliminate unions. This displaced workers and increased production.
Personal Responsibility and Work Opportunity Act
*Clinton *reversal/elimination of AFDC
1970s
*Corporate revenue on the decrease fast *Domestic market=saturated with consumer goods (overcapacity; had to cut prices; loss of revenue and income)
Henry Ford
*Creator of Neo-Classical Economics *$5 a day wages *encouraged everyday people to buy automobiles *massed produced automobiles and sold them *capacity to sell' maximize profits *invented middle class America
1880s- Continuous Process Machinery
*Machine did all of the work *humans were only needed to load and unload finished product from machinery
Oil Producing and Exporting Countries (OPEC)
*Middle East *created cartel--> drove energy prices up (profiteering) *U.S. is dependent on foreign oil--> significantly decreases revenue in U.S.; inflation; increases prices of products *cost of manufacturing is expensive therefore low revenues *In an effort to gain control of low revenue, corporations try to use the full implementation of labor replacing technology in both blue and white collar professions
Near Poor
*One severity away from being classified as poor *making $21,454 for family of 3
Aid to Families with Dependent Children (AFDC)
*Roosevelt's- New Deal *money given to parent to keep children from growing up in severe poverty *government program
1960s
*U.S. companies dominated global trade and commerce *huge manufacturing base in America; top of the line; best merchandise in the world *Millions of Americans are entering the Middle Class (and enjoying the benefits of middle class) *1965- productions at an all time high
Store Wars- Walmart (Second movie)
*Walmart has 90 million customers a week *Walmart is retaining expansion--> opening a new store every 2 days, one new country every year; keeping investors happy; higher revenue *opens new stores to drive out competition then closes Walmart's (390 empty stores) *employs some full time workers but mostly part time, 28 hours, 250$ a week, no benefits
Technological frame of reference ("techno-paradise")
*belief that technology will solve all of our problems *machines will do the work and humans will relax *started in the late 1800s with the harnessing of electricity--> resulted in other forms of technology advancements in the early 1900s such as the telegraph, telephone, movies, radios, etc *Americans adopted a technological frame of reference looking to technology to achieve a utopia
Manufacturing work place
*blue collar/factory work *on the verge of becoming obsolete in America *Proletariat will seize to exist *replaced by machines
1929- Great Depression
*credit--> unfulfilled massive credit bills *surplus inventories--> didn't get paid for what was produced; companies already created next wave of inventory; new inventory can't sell--> overcapacity *companies are crippled and going out of business
Opening price points
*displayed items, usually at end of aisle *price is based off of last years sales *lures people into the department based on "great prices", although it is the cheapest and lowest model advertised *luring people into department to find other products at higher prices *bait and switch
Outsourcing white collar jobs to India
*employees are earning 10% of what Americans would be paid to do the same work *no benefits *can work 20 hour weeks *most educated in the world (skilled jobs, design, engineering, high tech jobs)
Severely Poor
*fastest growing group of poor *making 50% or less than poverty threshold ($8,582 or less) *most impoverished group
National Labor Relations Board
*federal agency *sending the message of enforcement to the public *allows unions and companies to bargain wages
Amalgamated American Agriculture
*highly technological *little human labor *one device is doing the work of 100 people (tractors, plows, harvesters) *overproducing--> government is paying to not produce
Lean production
*increase efficiency by removing/eliminating middle management jobs (white collar) *work was shifted to other workers *demise of 40 hour work week *one person is doing the job of 2.5 people
Working Poor
*largest group of poor--> 50% of all poor *Have jobs but low end, menial jobs with no benefits (minimum wage or less) *Don't make enough to get out of poverty **technically worse off than New Poor
Artificial intelligence
*machines that think *hardware that replicate human thought processes
Era of Global Capitalism
*made possible by space shrinking technology *communicate instantly to anywhere in the world If one country that has outsourcing jobs wants to demand better working conditions, there are even poorer countries that will accept work (outsourced work will shift from one poor nation to another) **ready made global surplus labor
Service and Retail Sector
*middle management removed in lean production moved to retail/service sectors *making a decent living but not what once was made "unemployment sponge" *this sector also invests in labor replacing technology thus letting people go and no longer being unemployment sponge
Techno-unemployment; labor replacing technology
*people displaced by machines *22 years- 40 million jobs have been eliminated due to technological advancements *more work is accomplished with less people *more advanced, work faster, capabilities far beyond humans *corporations are being reengineered to be machine welcome
Gospel of Mass Consumption
*people have to want things *creation of commodity fetish *creating "needs"--> really wants
World War II and it's affect on the workplace
*re-emphasized technology *retain political and economic dominance on a global scale
Temporary Assistance to Needy Families (TANF)
*replaced AFDC *statewide program (not government program); state gets to pick thresholds--> can be stingy *regulations made by government 1) had to be looking for job or job training--> lead to increase of competition for existing jobs as government was not creating new jobs; surplus labor 2) 5 year limit placed on welfare (seeks to eliminate welfare dependency) 3) can't receive welfare over 24 months consecutively **decimated African American communities
Robodoc
*robot controlled by a doctor from home (or anywhere in world) *performs rounds and exams *perform surgeries around the world *reduces need for nurses and physicians
The demise of large Union labor lead to...
*underclass (working army to replace other workers; keeps unions in check) *displacement of white workers living in suburbs
China (factory town of the world)
*worlds most inexpensive workforce *outsourcing of blue collar jobs *high percent domestic products made in China *Demise of communism and space shrinking technologies allow for this outsourcing
New Deal (5 aspects)
1) government becomes employer of last resort- public work (building, roads, environmental work), millions of people, high wages (restore purchasing power, sell surplus inventories). DE-EMPHASIZED TECHNOLOGY 2) Unemployment Insurance- allows you to function as a consumer; checks from government for unemployment 3) Social Security- elderly/unable to work, checks from government. Also allows you to function as a consumer 4)Unions, Collective Bargaining- Now legal; employees can fight for higher wages 5) Supplemental Security Income- benefits for disabled or those unable to work
Tappahannah, Virginia
28-30 local stores closed because of Walmart (contradictory to what Walmart attorneys said) loss of specialty stores and people who specialize/are knowledgeable about products
Ashland Virginia 1999
Ashland, Virginia 1999 *small towns don't want Walmart--> feels it contradicts values (big box stores only benefit the rich) *don't want the development, traffic, trucks, job loss (local jobs) *Committee turned down first proposal *2nd Walmart proposal- brought traffic fixes, new direction of store, different colors and construction *ads for Walmart in Ashland- exploited study on Walmart (lied); Walmart does NOT help unemployment or stimulate other businesses *2nd proposal accepted- donated 500,000$ to program to help small businesses survive
1920s- Consumer Economy
Based On: 1)advertising- organized creation of dissatisfaction 2)credit- buy stuff even when you don't have the money 3)marketing- creation of sale opportunities (ex: BOGO) 4)planned obsolescence- products that have a limited lifespan; fashion industry would not survive without this *functionality and practicality don't matter--> just making sale
Any type of worker can be displaced
Blue collar--> robotics and hydraulics White collar--> artificial intelligence
How is the New Poor different from Conventional Poor?
Conventional poor has hopes of breaking out of poverty (either them or their kids); optimism. New Poor does not have hope or optimism; discouraged workers who have ceased looking for work
Herbert Hoover
Didn't do anything for poverty. took a nonintervention approach
Labor Replacing Technology is increasing the middle class. T or F?
False; drastically shrinking the middle class
Foreign competition
German and Japanese (automakers) opponents in global market
Franklin Roosevelt
New Deal Act (dramatic change in government functioning) *de-emphasize development and research of technology *need people working *putting good paychecks in as many hands as possible to reinstate the purchasing power of citizens
The New Poor
People who had been long time workers (full time job for 3 or more years) whose jobs were outsourced or replaced *getting government assistance
Agricultural Labor
Today, less than 3% of the work force is employed in farming. The farming industry is controlled by one company.
The New Poor and Severely Poor are the ________.
Underclass (reserve army for unemployed)
Pink Flamingos
advocate group to deny Walmart in Ashland
Overcapacity
building more than can be sold; excess inventory
If one factory wants to increase production, other companies (competitors and suppliers) need to _______ production.
increase
Push products
manufacturers deciding what to produce and trying to find retailers to sell it
More people have become poor due to...
outsourcing and technology replacement
"Unemployed" in America
people receiving unemployment
Multinational Corporations
physically based in America conducting business blobally
The New Deal was a way to....
redistribute wealth and power
Pull products
retailers figuring out what to sell and getting manufacturers to produce it
New Eden
technologically mediated paradise