Transcript Chapter 16 - Madison County Schools

Sociology, Eleventh Edition
Sociology, Eleventh Edition
 The
Economy - The
social institution
responsible for organizing
the production,
distribution, and
consumption of goods
and services.


Goods – commodities
ranging from necessities to
luxuries.
Services – activities that
benefit others.
Sociology, Eleventh Edition
First societies were
hunters and gatherers.
 The introduction of the
plow led to a new
agricultural economy.
 The surplus meant not
everyone had to
produce food 
specialized work.
 Towns soon developed.
 Linked by trading
networks.

Sociology, Eleventh Edition


Industrialization changed the
economy in 5 ways:
New sources of energy


Centralization of work in factories


Turning raw materials into a wide range of
products
Specialization


Moved away from farming and work based
out of homes
Manufacturing and mass production


Steam engine
Diverse division of labor and lower overall
skill requirements
Wage labor

Working for strangers with intense
supervision
Sociology, Eleventh Edition
Postindustrial economy –
a productive system
based on service work
and high-technology.
 The information revolution
has altered the
fundamental character of
work in 3 ways:
1. From tangible products
to intangible ideas
2. From mechanical skills
to literacy skills
3. From factories to almost
anywhere
•
Sociology, Eleventh Edition
 Primary

sector
Generation of raw materials
from the environment.
 Secondary

Transformation of raw
materials into manufactured
goods.

Ex. Refining petroleum into
gasoline or turning metals into
tools and automobiles.
 Tertiary

sector
sector
Economy generates
services rather than goods.

Ex. Office work
Sociology, Eleventh Edition
 According
to a study from the University
of Michigan, ¾ of high school seniors
work; 40% of seniors work more than 20
hours a week.
 How many of you work?


How many hours a week do you work?
What sector do you work in?

Primary, secondary or tertiary
Sociology, Eleventh Edition
Sociology, Eleventh Edition
 Global
Economy –
expanding economic
activity with little
regard to national
borders.
 Critics claim that the
US is losing jobs,
especially factory
jobs, to low income
nations.
Sociology, Eleventh Edition
 What
are the benefits of outsourcing jobs?
 Consequences?
 Is
it worth it?
Sociology, Eleventh Edition
Sociology, Eleventh Edition
Sociology, Eleventh Edition
Sociology, Eleventh Edition
Capitalism - An economic
system where the natural
resources and the means of
producing goods and
services is privately owned.
 Three distinct features:
 Private ownership of
property
 Pursuit of personal profit
 Competition and consumer
sovereignty


Adam Smith - The “invisible
hand” is at work so leave the
market alone (free market
economy).
Sociology, Eleventh Edition
Socialism - An economic
system where the natural
resources and the means of
producing goods and services
are collectively owned.
 Three distinct features:




Collective ownership of property
 Limits the right to private property
Pursuit of collective goals
 Pursuit of profits stands at odds
Government control of the economy
 Centrally controlled economy
 Consumers should not drive
economy
Sociology, Eleventh Edition
Communism – a hypothetical
economic and political system in
which all members of a society are
socially equal.
 North Korea, China or Cuba
 Welfare Capitalism – an economic and
political system that combines a
mostly market-based economy with
extensive social welfare programs.
 Sweden or Italy
 State Capitalism – an economic and
political system in which companies
are privately owned but cooperate
closely with the government.


Japan, South Korea and Singapore
Sociology, Eleventh Edition




Economic productivity
◦ Per capita GDP is
$13,500.00
Economic equality
◦ More income
disparity
Overall well-being
◦ A high quality of life,
but greater
disparities
Personal freedoms
◦ Are the heart of a
capitalistic system
Sociology, Eleventh Edition




Economic productivity
 Per capita GDP is
$5,000.00
Economic equality
 Less income disparity
Overall well-being
 Lower standards of
living, but less
disparity
Personal freedoms
 Stress is placed upon
freedom from basic
needs
Sociology, Eleventh Edition

The Dual Labor Market



Primary labor market
 White collar work
 Extensive benefits to workers
Secondary labor market
 Blue Collar work
 Minimal benefits to workers
Labor Unions


Organized labor seeking better wages and
benefits for members.
Decline of unions
 Loss of highly unionized jobs
 Many temporary workers these days
Sociology, Eleventh Edition


The U.S. government
requires individuals and
business to report their
economic activity,
especially earnings.
Unreported income makes
a transaction part of the
underground economy,
economic activity involving
income not reported to the
government as required by
law.
Sociology, Eleventh Edition
 Computers
are deskilling
labor.
 Computers are making
work more abstract.
 Computers are limiting
workplace interaction.
 Computers increase
employers’ control of
workers.
 Computers allow
companies to relocate
work.
Sociology, Eleventh Edition
Sociology, Eleventh Edition

Corporation - an organization with a
legal existence, including rights and
liabilities, apart from those of its
members

Economic concentration

In 2002, Wal-Mart was the largest
 $214 billion in revenue
 700,000 employees
Conglomerates – giant corporation
composed of several smaller
corporations
 Ex: Pepsico

Competition is a gray area
◦
◦
◦
“Let's be from
Vermont. And
let's have an
emerging
maple syrup
conglomerate.”
Monopoly: domination of a market by
one corporation
◦ Illegal
Oligopoly: domination of a market by a
few corporations
◦ Common
Sociology, Eleventh Edition
 Corporations
account for most of the
world’s economic output.
 They often look for low labor costs:


Mexico – average hourly wage $2.21
US – average hourly wage $17.12
Sociology, Eleventh Edition
Sociology, Eleventh Edition
Sociology, Eleventh Edition
 Politics

The social institution that distributes power, sets a
society’s agenda, and makes decisions.
 Power

The ability to achieve desired ends despite
resistance from others.
 Government

A formal organization that directs the political life
of a society.
Sociology, Eleventh Edition




Authority - Power people perceive as
legitimate, not coercive.
Traditional
 Power legitimized through respect
for long established cultural
patterns.
Rational-legal
 Power legitimized by legally
enacted rules and regulations.
Charismatic
 Power legitimized through
extraordinary personal abilities that
inspire devotion and obedience.

Examples: Mahatma Gandhi, Martin Luther
King, Jr., Adolf Hitler
Sociology, Eleventh Edition

MONARCHY
Rule by a single family over generations
typical of ancient agrarian societies.
 Monarchies are legitimized by tradition,
according to Weber.


ABSOLUTE MONARCHY



Rulers monopolizing power based on divine
right.
Modern Example: Saudi Arabia
CONSTITUTIONAL MONARCHIES





Modern-day monarchies
More figure head than ruler
Political principles rule
Elected official actually rules
Modern Example: Great Britain, Spain,
Denmark, etc.
Sociology, Eleventh Edition
– A political system
which gives power to the people as a
whole.
 Democracy
 Linked
to Rational-legal Authority
 High-income countries claim to be
democratic.
Democracy –
Authority in hands of elected leaders,
accountable to the people.
 Representative
Sociology, Eleventh Edition
Sociology, Eleventh Edition
Sociology, Eleventh Edition
 Welfare
state, government agencies and
programs that provide benefits to the
population.
 The U.S. welfare state is still smaller than
those of many other high-income nations.
Sociology, Eleventh Edition


The political spectrum helps us understand two types of issues:
Economic Issues


Economic Inequality - Poverty
Social Issues

Moral questions about how people ought to live.

Equal Rights, abortion, death penalty, etc.
Where
do you fall on the
political spectrum?
Why?
Sociology, Eleventh Edition
 Rich
people tend to be conservative on
economic issues but liberal on social issues.
 Low income people are economically liberal
yet socially conservative.
 African Americans, Latinos, Asian Americans,
Jews and women tend to be liberal.
Sociology, Eleventh Edition
Sociology, Eleventh Edition





Many people do not vote.
Women are more likely to vote than men.
65+ are more likely than college students to vote.
People making $75,000+ are more likely to vote than
people making less than $10,000.
Homeowners, parents with young kids, more schooling
and good jobs are more likely to vote.
Sociology, Eleventh Edition
 Kentucky
and Virginia are
the only states that don’t
automatically restore
voting rights to convicted
felons after serving their
sentence.
 Should
convicted felons
have a right to vote?
Sociology, Eleventh Edition
Sociology, Eleventh Edition
 Pluralist

Power is dispersed among many competing
interests groups.

All groups have some voice.
 The

power-elite model – based on S-C.
“Real” power is concentrated among the very
rich in America.

Concentrating wealth in the hands of the few makes
the US a mostly capitalist economy.
 Marxist

model – linked to S-F.
political-economy model – S-C.
Power is divided along the lines of a political
economy.


Bias is rooted within the nation’s social institutions.
Revolution is the only answer.
Sociology, Eleventh Edition
Sociology, Eleventh Edition

Political Revolution – The overthrow of a political
order in order to establish another.

Coup d’etat – one leader disposing another
Political Revolutions have common traits:
1. Rising expectations

Tend to happen when quality of life is improving.
Unresponsive government
2.

Government unwilling or unable to reform.
Radical leadership by intellectuals
3.

Revolution is often “university centered”. Students play
crucial role.
Establishing new legitimacy
4.

Guarding against the counterrevolution.
Sociology, Eleventh Edition
Sociology, Eleventh Edition
 Wars
occur often but
there is nothing natural
about humans engaging
in war.
 Warfare is a product of
society.
Sociology, Eleventh Edition
The world’s nations spend 1 trillion
annually.
 $160.00 for every person on earth
 Military spending went up for
decades due to the arms race
between the US and the Soviet
Union.
 Trying to increase military power.
 Militarism continues due to regional
conflict.
 Even small conflicts have the
potential to grow.

Sociology, Eleventh Edition

DETERRENCE

Balance of power (or terror) between societies.


HIGH-TECHNOLOGY DEFENSE


Strategic defense initiative.
DIPLOMACY AND DISARMAMENT


Ex. Cold War – 50+ years
Keep talking about reducing arms.
RESOLVING UNDERLYING CONFLICT

Increase spending on promoting peace rather than
building up military.
Sociology, Eleventh Edition