Chapter 18 sociology introduction to work and economy
Agricultural Revolution
The first true economies arrived when people started raising crops and domesticating animals. Although there is still a great deal of disagreement among archeologists as to the exact timeline, research indicates that agriculture began independently and at different times in several places around the world
Capitalism vs. Socialism
The focus in socialism is on benefitting society, whereas capitalism seeks to benefit the individual. Socialists claim that a capitalistic economy leads to inequality, with unfair distribution of wealth and individuals who use their power at the expense of society. Socialism strives, ideally, to control the economy to avoid the problems inherent in capitalism.
Polarization in the Workforce
The mix of jobs available in the United States began changing many years before the recession struck, and, as mentioned above, the American Dream has not always been easy to achieve. Geography, race, gender, and other factors have always played a role in the reality of success. --outsourcing
Postindustrial Societies and the Information Age
also known as information societies, have evolved in modernized nations. One of the most valuable goods of the modern era is information. Those who have the means to produce, store, and disseminate information are leaders in this type of society.
capitalism
an economic system in which there is private ownership (as opposed to state ownership) and where there is an impetus to produce profit, and thereby wealth. This is the type of economy in place in the United States today.
Market socialism
describes a subtype of socialism that adopts certain traits of capitalism, like allowing limited private ownership or consulting market demands. This could involve situations like profits generated by a company going directly to the employees of the company or being used as public funds
Most developed countries such as the United States protect their citizens from absolute poverty by providing
different levels of social services such as unemployment insurance, welfare, food assistance, and so on. They may also provide job training and retraining so that people can reenter the job market.
Countries have switched systems as-->
their rulers and economic fortunes have changed. For example, Russia has been transitioning to a market-based economy since the fall of communism in that region of the world. Vietnam, where the economy was devastated by the Vietnam War, restructured to a state-run economy in response, and more recently has been moving toward a socialist-style market economy.
By this he meant that if an owner did not work to produce or earn the property,
then the owner was stealing it from those who did. Proudhon believed economies could work using a principle called mutualism, under which individuals and cooperative groups would exchange products with one another on the basis of mutually satisfactory contracts (Proudhon 1840).
Depression
A long-term economic state characterized by unemployment and low prices and low levels of trade and investment the U.S. government will often adjust interest rates to encourage more lending—and consequently more spending. In short, letting the natural cycle fluctuate is not a gamble most governments are willing to take.
Mercantilism
an economic policy based on accumulating silver and gold by controlling colonial and foreign markets through taxes and other charges. The resulting restrictive practices and exacting demands included monopolies, bans on certain goods, high tariffs, and exclusivity requirements. Mercantilistic governments also promoted manufacturing and, with the ability to fund technological improvements, they helped create the equipment that led to the Industrial Revolution.
The dominant economic systems of the modern era
are capitalism and socialism, and there have been many variations of each system across the globe
primary sector of economy
involves the extraction of raw materials & resources.
Other globalization efforts, however, are more complex.
nafta
The complex U.S. economy, and the economies of other industrialized nations, meet the definition of organic solidarity
organic solidarity
The first coins were minted in Lydia in what is now Turkey around
650-600 B.C.E. (Goldsborough 2010).
The people living in the highlands of New Guinea developed agriculture between
9,000 and 6,000 years ago,
There are benefits to globalization
Some of the benefits include the exponentially accelerated progress of development, the creation of international awareness and empowerment,
Conflict Perspective on economy
Structure of the economy is a reflection of class conflict *classically Marxist, with the bourgeoisie (ruling class) accumulating wealth and power by exploiting and perhaps oppressing the proletariat (workers), and regulating those who cannot work (the aged, the infirm) into the great mass of unemployed (Marx and Engels 1848). *From the symbolic (though probably made up) statement of Marie Antoinette, who purportedly said, "Let them eat cake" when told that the peasants were starving, to the Occupy Wall Street movement that began during the Great Recession, the sense of inequity is almost unchanged. Conflict theorists believe wealth is concentrated in the hands of those who do not deserve it.
organic solidarity
arises out of the mutual interdependence created by the specialization of work.
people moved to cities to fill factory jobs, factory production also changed. Workers did their jobs
assembly lines and were trained to complete only one or two steps in the manufacturing process. These advances meant that more finished goods could be manufactured with more efficiency and speed than ever before.
Poverty in the United States
disproportionately affects women and younger heads of households
Modern socialism really began as a r
eaction to the excesses of uncontrolled industrial capitalism in the 1800s and 1900s. The enormous wealth and lavish lifestyles enjoyed by owners contrasted sharply with the miserable conditions of the workers. Some of the first great sociological thinkers studied the rise of socialism. Max Weber admired some aspects of socialism, especially its rationalism and how it could help social reform, but he worried that letting the government have complete control could result in an "iron cage of future bondage" from which there is no escape (Greisman and Ritzer 1981).
secondary sector of the economy
economic activities that transform raw materials into manufactured goods
Agriculture began with the simplest of technologies
for example, a pointed stick to break up the soil—
Heidemarie Schwermer
founded a business called Gib und Nimm—in English, "give and take." It operated on a moneyless basis and strived to facilitate people swapping goods and services for other goods and services—no cash allowed (Schwermer 2007). What began as a short experiment has become a new way of life. Schwermer says the change has helped her focus on people's inner value instead of their outward wealth. She wrote two books that tell her story (she's donated all proceeds to charity) and, most importantly, a richness in her life she was unable to attain with money.
New technology introduced
gasoline-powered farm tools such as tractors, seed drills, threshers, and combine harvesters. Farmers were encouraged to plant large fields of a single crop to maximize profits. With improved transportation and the invention of refrigeration, produce could be shipped safely all over the world.
Many sociologists contend that hunter-gatherers did not have a true economy, because
groups did not typically trade with other groups due to the scarcity of goods.
Gib und Nimm
in English, "give and take." It operated on a moneyless basis and strived to facilitate people swapping goods and services for other goods and services—no cash allowed (Schwermer 2007).
The earliest agriculture was . while people were farming in Sub-Saharan Africa between 5,000 and 4,000 years ago. Agriculture developed later in the western hemisphere, arising in what would become the eastern United States, central Mexico, and northern South America between 5,000 and 3,000 years ago (Diamond 2003).
in the Fertile Crescent in the Middle East around 11,000-10,000 years ago.
To experience this rapid growth, the economies of developing countries must to be able to attract
inexpensive capital to invest in new businesses and to improve traditionally low productivity. They need access to new, international markets for buying the goods. If these characteristics are not in place, then their economies cannot catch up. This is why the economies of some countries are diverging rather than converging (Abramovitz 1986).
As of 2010, 20 percent of Americans
owned 90 percent of U.S. wealth (Domhoff 2014). While the inequality might not be as extreme as in pre-revolutionary France, it is enough to make many believe that the United States is not the meritocracy it seems to be
Quanternary sector
produces ideas research new technologies
tertiary structure of economy
provides services childcare, lawncare, healthcare, money management
money
refers to an object that a society agrees to assign a value to so it can be exchanged for payment. In early economies, money was often objects like cowry shells, rice, barley, or even rum. Precious metals quickly became the preferred means of exchange in many cultures because of their durability and portability.
In well-developed economies, such as those in the United States, Japan, and Western Europe, the majority of the workforce is employed in
service industries. In the United States, for example, almost 80 percent of the workforce is employed in the tertiary sector (U.S. Bureau of Labor Statistics 2011).
Neither Marx nor Engels thought socialism could be used to
set up small utopian communities. Rather, they believed a socialist society would be created after workers rebelled against capitalistic owners and seized the means of production. They felt industrial capitalism was a necessary step that raised the level of production in society to a point it could progress to a socialist and then communist state (Marx and Engels 1848). These ideas form the basis of the sociological perspective of social conflict theory.
Under socialism, everything that people produce, including services, is considered a
social product. Everyone who contributes to the production of a good or to providing a service is entitled to a share in any benefits that come from its sale or use. To make sure all members of society get their fair share, governments must be able to control property, production, and distribution.
In the past, other economic systems reflected the
societies that formed them. Many of these earlier systems lasted centuries.
G. William Domhoff
studied the people listed in the Social register. Found that the upper class represent less than 0.5%. Close knit group that holds the power
In underdeveloped countries,
the majority of the people work in the primary sector. r.
As economies develop, more and more people are employed in
the secondary sector
economy
the social institution that organizes a society's production, distribution, and consumption of goods and services
Melvin Kohn
was a sociologist who found that working-class parents are more concerned that their children stay out of trouble. While middle-class parents focus more on developing their children's curiosity, self-expression, and self-control.
Finally, a symbolic interactionist might study
what contributes to job satisfaction.
Industrial Revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods. A small number of innovations led to a large number of changes in the British economy. In the textile industries, the spinning of cotton, worsted yarn, and flax could be done more quickly and less expensively using new machines with names like the Spinning Jenny and the Spinning Mule (Bond 2003). Another important innovation was made in the production of iron: Coke from coal could now be used in all stages of smelting rather than charcoal from wood, which dramatically lowered the cost of iron production while increasing availability (Bond 2003). James Watt ushered in what many scholars recognize as the greatest change, revolutionizing transportation and thereby the entire production of goods with his improved steam engine.
recession
A slowdown in a nation's economy
mechanical solidarity
Exists in simpler societies where social cohesion comes from sharing similar work, education, and religion
Economy is one of human society's earliest
Our earliest forms of writing (such as Sumerian clay tablets) were developed to record transactions, payments, and debts between merchants. As societies grow and change, so do their economies. The economy of a small farming community is very different from the economy of a large nation with advanced technology
Karl Marx and Friedrich Engels
Wrote the Communist Manifesto
The rapid increase in computer use in all aspects of daily life is the main reason for the transition to an.
information economy people are needed to work in factories because computerized robots now handle many of the tasks. Other manufacturing jobs have been outsourced to less-developed countries as a result of the developing global economy. The growth of the Internet has created industries that exist almost entirely online. Within industries, technology continues to change
One way scholars understand the development of different types of societies (like agricultural, industrial, and postindustrial) is by examining their economies in terms of four sectors:
primary, secondary, tertiary, and quaternary. Each has a different focus. The primary sector extracts and produces raw materials (like metals and crops). The secondary sector turns those raw materials into finished goods. The tertiary sector provides services: child care, healthcare, and money management. Finally, the quaternary sector produces ideas; these include the research that leads to new technologies, the management of information, and a society's highest levels of education and the arts (Kenessey 1987).
Industrial Revolution also birthed many societal problems.
there were inequalities in the system. Owners amassed vast fortunes while laborers, including young children, toiled for long hours in unsafe conditions. Workers' rights, wage protection, and safe work environments are issues that arose during this period and remain concerns today
global commodity chains
where products are assembled over the course of several international transactions --not a new concept
Next were the valleys of the Indus, Yangtze, and Yellow rivers in India and China, between
10,000 and 9,000 years ago
NAFTA (North American Free Trade Agreement)
An agreement for free trade between the United States and Canada and Mexico
capitalism in practice
As capitalists began to dominate the economies of many countries during the Industrial Revolution, the rapid growth of businesses and their tremendous profitability gave some owners the capital they needed to create enormous corporations that could monopolize an entire industry. Many companies controlled all aspects of the production cycle for their industry, from the raw materials, to the production, to the stores in which they were sold. These companies were able to use their wealth to buy out or stifle any competition. In the United States, the predatory tactics used by these large monopolies caused the government to take action. Starting in the late 1800s, the government passed a series of laws that broke up monopolies and regulated how key industries—such as transportation, steel production, and oil and gas exploration and refining—could conduct business.
History of Socialism
As with capitalism, the basic ideas behind socialism go far back in history. Plato, in ancient Greece, suggested a republic in which people shared their material goods. Early Christian communities believed in common ownership, as did the systems of monasteries set up by various religious orders. Many of the leaders of the French Revolution called for the abolition of all private property, not just the estates of the aristocracy they had overthrown. Thomas More's Utopia, published in 1516, imagined a society with little private property and mandatory labor on a communal farm. A utopia has since come to mean an imagined place or situation in which everything is perfect. Most experimental utopian communities had the abolition of private property as a founding principle.
Bartering
Exchanging products or services with others by agreeing on their values without using money. *This system only works when one person happens to have something the other person needs at the same time. *To solve this problem, people developed the idea of a means of exchange that could be used at any time: that is, money.
Socialism in Practice
Government ownership of means of production. Central planning. Command economy
substinence farming
Growing enough food to feed one's self and its' family
Karl Marx and Socialism
Marx believed that capitlaism = feudal serfdom. @ Socialism: believed that workers should control the means of production and share in the profits of their labor. Socialism evolved into Communish
The Wage Gap in the United States
On average, full-time working women make just 77 cents for every dollar a man makes. This significant gap is more than a statistic—iit has real-life consequences. When women, who make up nearly half the workforce, bring home less money each day, it means they have less for the everyday needs of their families, and over a lifetime of work, far less savings for retirement." While the Pew Research Center contends that women make 84 cents for every dollar men make, countless studies that have controlled for work experience, education, and other factors unanimously demonstrate that disparity between wages paid to men and to women still exists (Pew Research Center 2014). As shocking as it is, the gap actually widens when we add race and ethnicity to the picture. For example, African American women make on average 64 cents for every dollar a Caucasian male makes. Latina women make 56 cents, or 44 percent less, for every dollar a Caucasian male makes. African American and Latino men also make notably less than Caucasian men. Asian Americans tend to be the only minority that earns as much as or more than Caucasian men.
The Woman Who Lives without Money
Or a homeless person who simply wants a meal to eat. This last example, homelessness, is what caused Heidemarie Schwermer to give up money. She was a divorced high school teacher in Germany, and her life took a turn when she relocated her children to a rural town with a significant homeless population. She began to question what serves as currency in a society and decided to try something new.
Recent Economic Conditions
Today, however, unemployment rates are down in many areas of the United States, the Gross Domestic Product increased 4.6 percent in the second quarter of 2014 (US Department of Commerce-Bureau of Economic Analysis), property owners have noted a slight increase in the valuation of housing, and the stock market appears to be reinvigorated. for many, pay has not increased - mostly increased 298% Economic Impact of the Recession on Different Segments of Population: Most U.S. citizens have struggled financially as a result of the nearly decade-long recession. As noted above, many workers lost their jobs as unemployment rates soared, housing prices—which represent the wealth of the average person—declined sharply, and the cost of living increased significantly. Meanwhile income for the average U.S. worker remains stagnant. One indicator of general economic conditions is the rate at which individuals are accessing the country's safety net or social welfare programs. Between 2000 and 2013, the number of people relying on the Supplemental Nutrition Assistance Program (SNAP, formerly known as the "food stamp" program), climbed from 17,194,000 to more than 47,636,000. delivered a significant blow to the once-vibrant U.S. automotive industry. While consumers found loans harder to get due to the subprime mortgage lending crisis and increasing fuel costs, they also grew weary of large, gas-guzzling sport utility vehicles (SUVs) to realign their businesses in the face of decreased sales and lower manufacturing outputs, many large automotive companies severed their ties with hundreds of dealerships, which affected the dealers' local economies around the country.
Pierre Joseph Proudhon
What is Property?-self-educated printer who wrote a pamphlet-answer was that it was nothing but theft-property was profit that was stolen from the worker (source of all wealth)-feared power of state and was an anarchist
Women in the workforce
Women have been entering the workforce in ever-increasing numbers for several decades. They have also been finishing college and going on to earn higher degrees at higher rate than men do. This has resulted in many women being better positioned to obtain high-paying, high-skill jobs (Autor 2010). While women are getting more and better jobs and their wages are rising more quickly than men's wages are, U.S. Census statistics show that they are still earning only 77 percent of what men are for the same positions (U.S. Census Bureau 2010).
global assembly lines
a practice where products are assembled over the course of several international transactions
outsourcing
contracting a job or set of jobs into an outside source diminished the number of high-paying, often unionized, blue-collar positions available. A similar problem has arisen in the white-collar sector, with many low-level clerical and support positions also being outsourced, as evidenced by the international technical-support call centers in Mumbai, India, and Newfoundland, Canada. The number of supervisory and managerial positions has been reduced as companies streamline their command structures and industries continue to consolidate through mergers. Even highly educated skilled workers such as computer programmers have seen their jobs vanish overseas.
Many Eastern European and some South American countries have mixed
economies. Key industries are nationalized and directly controlled by the government; however, most businesses are privately owned and regulated by the government.
Drawbacks of Globalization
growing influence of enormous international financial and industrial corporations that benefit the most from free trade and unrestricted markets. They fear these corporations can use their vast wealth and resources to control governments to act in their interest rather than that of the local population (Bakan 2004). Indeed, when looking at the countries at the bottom of the list above, we are looking at places where the primary benefactors of mineral exploitation are major corporations and a few key political figures. Other critics oppose globalization for what they see as negative impacts on the environment and local economies. Rapid industrialization, often a key component of globalization, can lead to widespread economic damage due to the lack of regulatory environment (Speth 2003). Further, as there are often no social institutions in place to protect workers in countries where jobs are scarce, some critics state that globalization leads to weak labor movements (Boswell and Stevis 1997). Finally, critics are concerned that wealthy countries can force economically weaker nations to open their markets while protecting their own local products from competition (Wallerstein 1974). This can be particularly true of agricultural products, which are often one of the main exports of poor and developing countries (Koroma 2007). outsourcing of manufacturing and service industry jobs into developing countries
but really took off when people --->
harnessed animals to pull an even more efficient tool for the same task: a plow. With this new technology, one family could grow enough crops not only to feed themselves but also to feed others. Knowing there would be abundant food each year as long as crops were tended led people to abandon the nomadic life of hunter-gatherers and settle down to farm.
Socialism
is an economic system in which there is government ownership (often referred to as "state run") of goods and their production, with an impetus to share work and wealth equally among the members of a society.
Immigration and the Workforce
people will move from where there are few or no jobs to places where there are jobs, unless something prevents them from doing so. The process of moving to a country is called immigration. Due to its reputation as the land of opportunity, the United States has long been the destination of all skill levels of workers. While the rate decreased somewhat during the economic slowdown of 2008, immigrants, both legal and illegal, continue to be a major part of the U.S. workforce. The answer is that as of June 2009, when the National Bureau of Economic Research (NEBR) declared the recession officially over, "foreign-born workers gained 656,000 jobs while native-born workers lost 1.2 million jobs" (Kochhar 2010). As these numbers suggest, the unemployment rate that year decreased for immigrant workers and increased for native workers. The reasons for this trend are not entirely clear. Some Pew research suggests immigrants tend to have greater flexibility to move from job to job and that the immigrant population may have been early victims of the recession, and thus were quicker to rebound (Kochhar 2010). Regardless of the reasons, the 2009 job gains are far from enough to keep them inured from the country's economic woes. Immigrant earnings are in decline, even as the number of jobs increases, and some theorize that increase in employment may come from a willingness to accept significantly lower wages and benefits.
Automation and work
production processes monitored and controlled by machines with only minimal supervision from people self check aisle
Another factor affects convergence concerning
social structure. Early in their development, countries such as Brazil and Cuba had economies based on cash crops (coffee or sugarcane, for instance) grown on large plantations by unskilled workers. The elite ran the plantations and the government, with little interest in training and educating the populace for other endeavors. This restricted economic growth until the power of the wealthy plantation owners was challenged (Sokoloff and Engerman 2000). Improved economies generally lead to wider social improvement. Society benefits from improved educational systems and allowed people more time to devote to learning and leisure.
A symbolic interactionist would note that bartering and money are
systems of symbolic exchange. Monetary objects took on a symbolic meaning, one that carries into our modern-day use of cash, checks, and debit cards.
Obama and Socialism: A Few Definitions
t may have been because the president was campaigning by telling workers it's good for everybody when wealth gets spread around. But whatever the reason, the label became a weapon of choice for Republicans during and after the campaign There is more than one definition of socialism, but it generally refers to an economic or political theory that advocates for shared or governmental ownership and administration of production and distribution of goods. Often held up in counterpoint to capitalism, which encourages private ownership and production, socialism is not typically an all-or-nothing plan. For example, both the United Kingdom and France, as well as other European countries, have socialized medicine, meaning that medical services are run nationally to reach as many people as possible. These nations are, of course, still essentially capitalist countries with free-market economies.
Another key characteristic of economic growth regards the implementation of technology. A developing country can bypass some steps of implementing technology that other nations faced earlier. Television and telephone systems are a good example. While developed countries spent significant time and money establishing elaborate system infrastructures based on metal wires or fiber-optic cables, developing countries today can go directly to cell phone and satellite transmission with much less investment.
technology. A developing country can bypass some steps of implementing technology that other nations faced earlier. Television and telephone systems are a good example. While developed countries spent significant time and money establishing elaborate system infrastructures based on metal wires or fiber-optic cables, developing countries today can go directly to cell phone and satellite transmission with much less investment.
The Davis-Moore thesis, for example, suggests
that some social stratification is a social necessity. The need for certain highly skilled positions combined with the relative difficulty of the occupation and the length of time it takes to qualify will result in a higher reward for that job and will provide a financial motivation to engage in more education and a more difficult profession (Davis and Moore 1945). This theory can be used to explain the prestige and salaries that go with careers only available to those with doctorates or medical degrees.
Globalization of economy
the economies of different nations are increasingly tied together by interdependent relationships the process of integrating governments, cultures, and financial markets through international trade into a single world market. Often, the process begins with a single motive, such as market expansion (on the part of a corporation) or increased access to healthcare (on the part of a nonprofit organization). But usually there is a snowball effect, and globalization becomes a mixed bag of economic, philanthropic, entrepreneurial, and cultural efforts. Sometimes the efforts have obvious benefits, even for those who worry about cultural colonialism, such as campaigns to bring clean-water technology to rural areas that do not have access to safe drinking water.
Symbolic Interactionist Perspective
the sociological approach that views society as the sum of the interactions of individuals and groups One important symbolic interactionist concept related to work and the economy is career inheritance. This concept means simply that children tend to enter the same or similar occupation as their parents, which is a correlation that has been demonstrated in research studies (Antony 1998). For example, the children of police officers learn the norms and values that will help them succeed in law enforcement, and since they have a model career path to follow, they may find law enforcement even more attractive. Related to career inheritance is career socialization—learning the norms and values of a particular job.
Early legal codes established
the value of money and the rates of exchange for various commodities. They also established the rules for inheritance, fines as penalties for crimes, and how property was to be divided and taxed (Horne 1915).
convergence theory
theory of collective action stating that collective action happens when people with similar ideas and tendencies gather in the same place explains that as a country's economy grows, its societal organization changes to become more like that of an industrialized society. Rather than staying in one job for a lifetime, people begin to move from job to job as conditions improve and opportunities arise. This means the workforce needs continual training and retraining. Workers move from rural areas to cities as they become centers of economic activity, and the government takes a larger role in providing expanded public services Supporters of the theory point to Germany, France, and Japan—countries that rapidly rebuilt their economies after World War II. They point out how, in the 1960s and 1970s, East Asian countries like Singapore, South Korea, and Taiwan converged with countries with developed economies. They are now considered developed countries themselves.
Functionalist Perspective on economy
view work and the economy as a well-oiled machine that is designed for maximum efficiency. The functionalist perspective would assume that the continued health of the economy is vital to the health of the nation, as it ensures the distribution of goods and services. For example, we need food to travel from farms (high-functioning and efficient agricultural systems) via roads (safe and effective trucking and rail routes) to urban centers (high-density areas where workers can gather). However, sometimes a dysfunction--a function with the potential to disrupt social institutions or organization (Merton 1968)--in the economy occurs, usually because some institutions fail to adapt quickly enough to changing social conditions.
As more people specialized in nonfarming jobs--->
villages grew into towns and then into cities. Urban areas created the need for administrators and public servants. Disputes over ownership, payments, debts, compensation for damages, and the like led to the need for laws and courts—and the judges, clerks, lawyers, and police who administered and enforced those laws.
underemployment,
workers are overqualified for their jobs or work fewer hours than they would prefer