Modernization The Impact of Modernity on Economy

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Presentation transcript:

Modernization The Impact of Modernity on Economy “That institution in society that arranges for the production and distribution of the goods needed for survival”

Three Great Revolutions Political Revolution destroyed the great monarchies and feudalism rise of democratic societies power resides in the people

Three Great Revolutions Scientific Revolution Rise of scientific method (reason) Two key consequences: Technological innovations ---> industrial revolution Declining significance of a religious world view

Three Great Revolutions Industrial Revolution specialized, machine-based production huge increase in productivity birth of the middle class

Sociological Consequences of Industrialization "the replacement of living energy sources with non-living energy sources" Social Differentiation: "The process by which different social categories emerge and by which people come to fill those categories"

Sociological Consequences of Industrialization Specialization One type of social differentiation "the transformation from single, multiple-purpose statuses/roles to multiple, single-purpose statuses/roles)”

Consequences of Specialization (3 Predictions) Optimistic (Adam Smith) The Wealth of Nations (1776) dramatically increases productivity creates new jobs mechanism for social organization economic interdependence: exchange relationships

Consequences of Specialization (3 Predictions) Cautiously Optimistic (Emile Durkheim) The Division of Labor in Society (1893) "Is specialization really a viable form of social organization?" Solidarity: "commonality of purpose and social identity” Necessary condition for society to exist

Consequences of Specialization (3 Predictions) Pre-industrial societies: "mechanical solidarity" simple division of labor (gender and age) how will we achieve solidarity in an age of specialization?

Consequences of Specialization (3 Predictions) Industrial societies could produce solidarity organic solidarity: economic interdependence (like Smith) BUT: specialization could produce anomie (a-nomos) "a condition of societal normlessness

Consequences of Specialization (3 Predictions) Pessimistic: Karl Marx (Capital, 1867, 1885, 1894) concerned about the types of work in an industrial economy Alienation: separation/estrangement from: production process itself finished products of our labor our fellow workers ourselves

Industrialization & Stratification "vertical ranking of members of a society, based upon their access to and control over scarce resources“ Another type of social differentiation

Industrialization & Stratification Max Weber wealth class stratification honor (prestige) status stratification power "party" stratification (politics)

From Household Economy to Industrial Capitalism Produced subsistence work was performed in and for the household money was used as a unit of account barter/trade for items they did not produce orientation away from the market

From Household Economy to Industrial Capitalism a set of social practices AND a way of thinking about and organizing economic activities 3 distinct features The Market impersonal buying and selling of commodities

From Household Economy to Industrial Capitalism Goods produced with the expressed intent of selling them For more than it cost to produce them Distinct Economic Institutions Organizations specializing in the manufacture, distribution and sale of specific products “Double Dependence” Profit Orientation (the “ism” of capitalism)

From Household Economy to Industrial Capitalism Marx: commodity production circuit: M-C-M' M = surplus value (profit) come to see all aspects of org. according to effects upon profit Marx: where does added value come from? AND where does it go? Conflict

Two Predictions About Stratification Marx: Two-Class Society Bourgeoisie and Proletariat Few wealthy, many poor Class Consciousness proletariat: a class for themselves Revolution Capitalism: last stage on the way to a just society (Communism)

Karl Marx’s Prediction of Stratification System of Industrial Capitalist Economies $$$$ Number of People

Two Predictions About Stratification “Adam Smith": Generally Higher Standard of Living for Most a few wealthy the majority will do quite well "middle class" a few poor

$$ $ $ Adam Smith’s Prediction of Stratification System of Industrial Capitalist Economies Number of People