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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