Class 3 – Economics For Everyone Part 1 Sociology 323 Economy & Society Class 3 – Economics For Everyone Part 1 1

Summary of Jim Stanford Economics for Everyone – Part 1 General impressions? Who is Jim Stanford? http://www.economicsforeveryone.ca/authors Canadian Auto Workers Union Columnist for the Globe and Mail Master’s degree in Economics from Cambridge University, and his Ph.D. from the New School for Social Research Founding chairperson of the Progressive Economics Forum http://www.progressive-economics.ca/ 2

Chapter 1 - What is the Economy? Factors that make up economic theories include: - Work - Consumption - Investment - Finance - Environment Work is highly stressed as an important factor. The purpose of work is to produce things for people to consume. An economy is fundamentally social activity 3

Chapter 1 - What is Economics? A social science not a physical science Economics is he study of human economic behaviour: the production and distribution of goods and services we need and want. Micro-economics & Marco-economics (see previous lecture) Dominant Model Neoclassical Model Rooted in Political Economy Measurements (like GDP) What makes up a good economy? 4

A Good Economy... According to Jim Stanford Prosperity Security Innovation Choice Equality Sustainability Democracy and Accountability 5

Chapter 2 - Capitalism What is capitalism? Two key features that make up capitalism 1 - Most production of goods and services is undertaken by privately owned companies, which produce and sell their output in hopes of making profit. (production for profit) 2 – Most work in the economy is performed by people who do not own their company or output, but are hired by someone else to work in return for a money wage or salary. (wage labour) Trends and patterns of a capitalist system - Competition - Innovation - Growth - Conflict - Cycles The presence of markets does not make an economy capitalist. Capitalism is a system which most production occurs for private profit, and most work is performed by wage labour. 6

Chapter 2 – Fads in Capitalism The Post-Industrial Society The Information Economy Shareholder Economy According to Jim Stanford “there's nothing much new about capitalism” 7

Discussion Tax Money To Banks 8 http://www.youtube.com/watch?v=R3c-aN6Y7OU http://www.youtube.com/watch?v=ixpr8guO0JA http://www.youtube.com/watch?v=9K_N0uOXkQA http://www.policyalternatives.ca/sites/default/files/uploads/publications/National%20Office/2012/04/Big%20Banks%20Big%20Se cret.pdf 8

Discussion The Canadian Housing Economy 9 http://www.youtube.com/watch?v=oKi37gy0X00 http://www.ctvnews.ca/business/household-debt-in-canada-hits-all-time-high-but-may-be-nearing-limit-1.1590905/ http://business.financialpost.com/2013/11/27/according-to-the-imf-canada-has-the-most-overvalued-housing-market-in-the-world/ http://www.rbc.com/economics/economic-reports/pdf/canadian-housing/house-november2013.pdf 9