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School of Business Administration IU – VNU HCMC BA116IU Introduction to Social Sciences Semester 2, 2008-2009 Instructor: Dr. Truong Thi Kim Chuyen USSH – VNU HCMC Chapter 14 GOVERNMENT, THE ECONOMY, AND THE ENVIRONMENT Chapter Outline •Economic Systems: Case Study: Capitalism in China •Power and Authority •Political Behavior •Models of Power Structure in the United States •War and Peace •The Changing Economy •The Environment •Social Policy and the Economy: Affirmative Action Economic Systems Industrial Revolution – Brought about changes in social organization of the workplace – Industrial Society: depends on mechanization to produce its goods and services Economic Systems • Capitalism – Economic system in which the means of production are largely in private hands, and the main incentive for economic activity is the accumulation of profits • Laissez-faire: people could compete freely with minimal government intervention • Monopoly: exists when a single firm controls the market Economic Systems Capitalism – U.S. outlaws monopolies through antitrust legislation – Globalization and the rise of multinational corporations have spread capitalistic pursuit of profits around the world Economic Systems Socialism – Refined by Marx and Engels. – Attempts to eliminate economic exploitation – Under socialism, the means of production and distribution are collectively rather than privately owned • Communism: refers to economic system under which all property is communally owned and no social distinctions are made on the base of people’s ability to produce Economic Systems The Informal Economy – When transfer of money, goods, or services takes place but is not reported to the government – Difficult to measure – In developing nations, the informal economy represents significant part of total economic activity – It is in some respects dysfunctional for workers Case Study: Capitalism in China The Road to Capitalism – Communist party assumed leadership of China in 1949, outlawed profit-making – By the 1960s, China’s economy was dominated by state-controlled enterprises • Economy suffered and many of the businesses failed – From the late 1980s to the mid 90’s, China’s government slowly eased restrictions against private enterprise Case Study: Capitalism in China The Chinese Economy Today – By 2001, the number of state-run companies had been cut in half – Chinese capitalists must now compete with multinational corporations, which can now operate more freely in China. – In 2003, GM’s Chinese operation was producing 110,000 automobiles a year for Chinese consumers, with double the profit rate as the U.S. Case Study: Capitalism in China Chinese Workers in the New Economy – Loosening of state control over economy meant a rise in occupational mobility – Struggles include lag between urban and rural salaries, worker safety is not a priority in many small businesses, and the road to advancement is slower for women in China Power and Authority Power – Weber argued power is ability to exercise one’s will over others – Sources of power in political systems include: • Force: actual or threatened use of coercion to impose one’s political dissidents • Influence: exercise of power through a process of persuasion Power and Authority Types of Authority – Authority: power that has been institutionalized and is recognized by people over whom it is recognized • Traditional Authority: legitimate power is conferred by custom and accepted practice Power and Authority Types of Authority – Authority • Legal-Rational Authority: power is made legitimate by law • Charismatic Authority: power is made legitimate by leader’s exceptional personal or emotional appeal to his or her followers Political Behavior in the United States Participation and Apathy – Only a small minority actually participate in political organization on a local or national level – Voter turnout particularly low among members of racial and ethnic minorities – The segment of voting population that has shown the most voter apathy is the young Political Behavior in the United States Political Behavior in the United States Women in Politics – Women are significantly underrepresented in government in the United States – There is evidence that media cover women politicians differently from men – “Gender gap” exists in political preferences and activities of males and females Models of Power Structure in the United States Power Elite Models – Mills’s Model • Mills described a small ruling elite of military, industrial, and governmental leaders • Power rested in the hands of a few, inside and outside of government….the power elite • The power elite are mostly male, white, and upper class Models of Power Structure in the United States Power Elite Models – Domhoff’s Model • Stresses roles played by elites of corporate community and leaders of policy-formation organizations such as: – Chambers of commerce – Labor unions Models of Power Structure in the United States Figure 14-1: Power Elite Models Models of Power Structure in the United States Pluralist Model – Many conflicting groups within the community have access to government, and no single group is dominant • A variety of groups play significant role in decision making Models of Power Structure in the United States Figure 14-2: U.S. Public Opinion on the Necessity of War, 1971-2004 War and Peace War – Conflict between organizations that possess trained combat forces equipped with deadly weapons • Global view • Nation-state view • Micro view War and Peace Peace – Absence of war and as a proactive effort to develop cooperative relations among nations – Many analysts stress that nations cannot maintain their security by threatening violence War and Peace Terrorism – Use or threat of violence against random or symbolic targets in pursuit of political aims. – Essential aspect of contemporary terrorism involves use of the media The Changing Economy The Changing Face of the Workforce – Sociologists foresee a workforce increasingly composed of women and racial and ethnic minorities – A more diverse workforce means relationships between workers are more likely to cross gender, racial, and ethnic lines The Changing Economy Figure 14.3: Racial and Ethnic Composition of the U.S. Labor Force, 1980 and 2020 (projection) The Changing Economy Deindustrialization – Systematic, widespread withdrawal of investment in the basic aspects of productivity such as factories and plants – Downsizing: reduction in a company’s workforce The Environment Environmental Problems: An Overview – Air Pollution • In cities, air pollution is primarily caused by automobiles and emissions from electric power plants and heavy industries • World Health Organization estimates that up to 700,000 premature deaths per year could be prevented if pollutants were brought to safer levels The Environment Environmental Problems: An Overview – Water Pollution • Dumping of waste materials by industries and local governments has polluted streams, rivers, and lakes • Many bodies of water now unsafe for drinking, fishing, and swimming • Pollution of oceans now becoming major concern Functionalism and Human Ecology The natural environment perfroms three basic functions for humans, as it does for the many animal species: 1. Provides the resources essential for life: air, water, materials used to create shelter, transportation, and needed products. If human societies exhaust these resources – for example, by polluting the water supply or cutting down rain forests – the consequences can be dire. 2. Serves as a waste repository: more so than other living species, humans produce a huge quantity and variety of waste products – bottles, boxes, papers, sewage, garbage, and so on. Various types of pollution have become more common because human societies are generating more wastes than the environment can safely absorb. 3. “Houses” our species: it is our home, our living space, the place where we reside, work, and play. At times we take this truism for granted, but not when day – to – day living conditions become unpleasant and difficult. If our air is “heavy”, if our tap water turns brown, if toxic chemicals seep into our neighborhood, we remember why it is vital to live in a healthful environment. • “Everything is connected to everything else”. • Government policymakers and environmentalists must determine how they can fulfill human societies pressing needs (for example, for food, clothing, and shelter) while at the same time preserving the environment as a source of resources, a waste repository and our home. Conflict View of Environmental Issues - Less affluent nations are being forced to exploit their mineral deposits, forests, and fisheries to meet debt obligations - The poor turn to the only means of survival available to them: – Plow mountain slopes – Burn plots in rain forests – Overgraze grasslands • In his view, a capitalist system create a “treadmill of production” because of its inherent need to build ever-expanding profits. This treadmill necessitates creating an increasing demand for products, obtaining natural resources at minimal cost, and manufacturing products as quickly and cheaply as possible – no matter what the long-term environmental consequences. Environmental Justice – Legal strategy based on claims that racial minorities are subjected disproportionately to environmental hazards – President Bill Clinton issued an executive order in 1994 that requires all federal agencies to ensure that lowincome and minority communities have access to better information about their environment, and an opportunity to participate in shaping government policies that affect their health. – To date, most sociological studies of the problem of industrial waste have focused on the discriminatory nature of the siting process. Social Policy and the Economy Affirmative Action – The Issue • Affirmative action refers to positive efforts to recruit minority group members or women for jobs, promotions, and educational opportunities Social Policy and the Economy Affirmative Action – The Setting • Discriminatory actions currently outlawed include: – Discrimination based on race, sex, or both – Word-of-mouth recruitment among all-White or all-male workforces – Recruitment exclusively in schools or colleges that are limited to one sex or are predominantly White Social Policy and the Economy Affirmative Action – The Setting • Discriminatory actions currently outlawed include: – Discrimination against married and/or pregnant women – Advertising in male and female help wanted columns when gender is not an occupational qualification – Job qualifications and tests that are unrelated to the job Social Policy and the Economy Affirmative Action – Sociological Insights • Conflict theorists view affirmative action as a legislative attempt to reduce the inequality embedded in the social structure by increasing the opportunities of groups that have been deprived in the past • Interactionists focus on situations in which some women and minorities in underrepresented professions and schools are often mistakenly viewed as products of affirmative action Social Policy and the Economy Affirmative Action – Policy Initiatives • Opponents of affirmative action insist that its goals are quotas that lead to reverse discrimination • A 1996 California measure prohibited any program that gives preference to women and minorities in college admissions, hiring, promotion, or government contracts • The University of Michigan’s admissions practices spurred the 2003 Supreme Court ruling that one may consider race as one factor in the admissions process The Changing Economy Figure 14.4: U.S. Median Income by Race, Ethnicity, and Gender, 2002