Sociology, Tenth Edition The Economy and Work Sociology, Tenth Edition

Agricultural Revolution The Economy -- The social institution responsible for organizing the production, distribution, and consumption of goods and services Four factors that made the economy a distinct social institution Agricultural technology Job specialization Permanent settlements Trade Sociology, Tenth Edition

Industrialization Introduced Five Notable Changes To Western Societies New sources of energies Steam-fueled machine operation Centralization of work in factories Impersonal factories replaced cottage industries Manufacturing and mass production Turning raw materials into a wide range of products Specialization Diverse division of labor and lower overall skill requirements Wage labor Working for strangers with intense supervision Sociology, Tenth Edition

The Information Revolution Postindustrial economy– a productive system based on service work and high-technology The information revolution has altered work the fundamental character of work in three ways From tangible products to intangible ideas Creating and manipulating symbols in modern society From mechanical skills to literacy skills Speaking, writing, and computer knowledge From factories to almost anywhere Laptops, cell phones, virtual office Sociology, Tenth Edition

Figure 16-1 The Size of Economic Sectors by Income Level of Country Sociology, Tenth Edition

Sociology, Tenth Edition Sectors Of The Economy Primary sector Generation of raw materials from the environment Low income countries = 23% of economy High income countries = 2% of economy Secondary sector Transformation of raw materials into manufactured goods Growth rapid in all industrialized nations or those entering the phase Tertiary sector Economy generates services rather than goods Low income countries = 38% of economy High income countries = 68% of economy Sociology, Tenth Edition

Sociology, Tenth Edition The Global Economy Global Economy – expanding economic activity with little regard to national borders This activity has four major consequences Global division of labor Products pass through many countries National governments n longer control the economic activity within their borders A small number of businesses now control a vast share of the world’s wealth Sociology, Tenth Edition

Sociology, Tenth 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 Key concept of capitalism Pursuit of personal profit Simply a “matter of doing business” Competition and consumer sovereignty The “invisible hand” is at work so leave the market alone Sociology, Tenth Edition

Sociology, Tenth 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, Tenth Edition

Sociology, Tenth Edition Alternative Systems Communism – a hypothetical economic ad political system in which all members of a society are socially equal Welfare Capitalism – an economic and political system that combines a mostly market-based economy with extensive social welfare programs State Capitalism – an economic and political system in which companies are privately owned but cooperate closely with the government Sociology, Tenth Edition

CAPITALSIM VS. SOCIALSIM Economic productivity GDP is $5,000.00 Economic equality Less income disparity Overall well-being Lower standards of living, but less disparity Personal freedom Stress is placed upon freedom from basic needs Economic productivity 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; Need creative forces Sociology, Tenth Edition

Sociology, Tenth Edition THE WORKFORCE THE DUAL LABOR MARKET PRIMARY LABOR MARKET EXTENSIVE BENEFITS TO WORKERS SECONDARY LABOR MARKET MINIMAL BENEFITS TO WORKERS LABOR UNIONS ORGANIZED LABOR SEEKING BETTER WAGES AND BENEFITS FOR MEMBERS DECLINE OF UNIONS LOSS OF HIGHLY UNIONIZED JOBS CONCESSIONS HAVE INCLUDED DISSOLUTION OF UNIONS MANY TEMPORARY WORKERS THESE DAYS Sociology, Tenth Edition

National Map 16-1 Labor Force Participation across the United States Sociology, Tenth Edition

TRAITS OF PROFESSIONALS Profession – a prestigious white color occupation that requires extensive formal education Theoretical knowledge Extensive schooling Self-regulated practice Participation in associations Authority over clients Follow my suggestions Orientation to community rather than self-interest Not the pay, but the help Sociology, Tenth Edition

TRAITS OF PROFESSIONALS PARAPROFESSIONALS NOT ABLE TO CLAIM FULL PROFESSIONAL STATUS Includes paralegals & medical technicians SELF-EMPLOYMENT EARNING A LIVING WITHOUT WORKING FOR A LARGE CORPORATION WOMEN FIND FREEDOM AND OPPORTUNITY Sociology, Tenth Edition

Effects of Computers on Work “De-skilling” labor Machines make decision-makers obsolete Making work more abstract Understanding rather than “doing” Limiting workspace interaction Isolates workers Enhance employer’s control of workers Electronic monitors Sociology, Tenth Edition

Sociology, Tenth 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 - SEVERAL SMALLER CORPORATIONS STRATEGY FOR DIVERSIFYING INTERLOCKING DIRECTORATES COMPETITION IS A GREY AREA MONOPOLY: DOMINATION OF A MARKET BY ONE CORPORATION OLIGOPOLY: DOMINATION OF A MARKET BY A FEW CORPORATIONS Sociology, Tenth Edition

Figure 16.5 Average Hourly Wages for Workers in Manufacturing, 2002 Sociology, Tenth Edition