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

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

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

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

5. 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"

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

7. 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

8. 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

9. 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?

10. 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

11. 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

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

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

14. 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

15. 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

16. 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)

17. 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

18. 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)

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

20. 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

21. $$ $ $
Adam Smith’s Prediction of Stratification System of Industrial Capitalist Economies
Number of People