1. The Economy and Work
Sociology, Eleventh Edition

2. The Economy: Historical overview
Sociology, Eleventh Edition

3. The Economy
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

4. The Agricultural Revolution
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

5. Industrial Revolution
Industrialization changed the economy in 5 ways:
New sources of energy
Steam engine
Centralization of work in factories
Moved away from farming and work based out of homes
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, Eleventh Edition

6. The Information Revolution
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:
From tangible products to intangible ideas
From mechanical skills to literacy skills
From factories to almost anywhere
Sociology, Eleventh Edition

7. Sectors Of The Economy Primary sector Secondary sector Tertiary sector
Generation of raw materials from the environment.
Secondary sector
Transformation of raw materials into manufactured goods.
Ex. Refining petroleum into gasoline or turning metals into tools and automobiles.
Tertiary sector
Economy generates services rather than goods.
Ex. Office work
Sociology, Eleventh Edition

8. DISCUSSION QUESTION
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

9. Figure (p. 421) The Size of Economic Sectors by Income Level of Country As countries become richer, the primary sector of the economy becomes smaller and the tertiary or services sector becomes larger. Sources: Estimates based on United Nations Development Programme (2000) and World Bank (2000).
Sociology, Eleventh Edition

10. The Global Economy
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

11. DISCUSSION QUESTION What are the benefits of outsourcing jobs?
Consequences?
Is it worth it?
Sociology, Eleventh Edition

12. Global Map (p. 423) Agricultural Employment in Global Perspective The primary sector of the economy is largest in the nations that are least developed. Thus in the poor countries of Africa and Asia, up to half of all workers are farmers. This picture is altogether different in the world’s most economically developed countries – including the U.S., Canada, Great Britain, and Australia – which have 2 percent of their labor force in agriculture.
Sociology, Eleventh Edition

13. Global Map (p. 423) Service-Sector Employment in Global Perspective The tertiary sector of the economy becomes ever larger as a nation’s income level rises. In the U.S., Canada, the countries of Western Europe, Australia, and Japan, about two-thirds of the labor force performs service work. Sources: Data from U.N. Development Programme (2000) and World Bank (2000, 2001); map projection from Peters Atlas of the World (1990).
Sociology, Eleventh Edition

14. Economic systems: paths to justice
Sociology, Eleventh Edition

15. CAPITALISM
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

16. SOCIALISM
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

17. Alternative Systems
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

18. CAPITALISM VS. SOCIALISM
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
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

19. Work in postindustrial economy
Sociology, Eleventh Edition

20. THE WORKFORCE The Dual Labor Market Labor Unions 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

21. Figure (p. 428) The Changing Pattern of Work in the United States, Compared to a century ago, work in the U.S. now involves mostly white-collar service jobs. Source: Estimates based on U.S. Department of Labor (2005).

22. The Underground Economy
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

23. Effects of Computers on Work
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

24. CORPORATIONS
Sociology, Eleventh Edition

25. CORPORATION “Let's be from Vermont. And let's have an emerging
maple syrup conglomerate.”
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
Monopoly: domination of a market by one corporation
Illegal
Oligopoly: domination of a market by a few corporations
Common
Sociology, Eleventh Edition

26. Corporations and the Global Economy
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

27. Politics and Government
Sociology, Eleventh Edition

28. Power and Authority
Sociology, Eleventh Edition

29. Politics & Government Politics Power Government
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

30. Weber’s Types of Authority
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

31. Politics in global perspective
Sociology, Eleventh Edition

32. THE MONARCHY MONARCHY ABSOLUTE MONARCHY CONSTITUTIONAL MONARCHIES
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

33. Democracy
Democracy – A political system which gives power to the people as a whole.
Linked to Rational-legal Authority
High-income countries claim to be democratic.
Representative Democracy – Authority in hands of elected leaders, accountable to the people.
Sociology, Eleventh Edition

34. Global Map (p. 447) Political Freedom in Global Perspective In 2005, a total of 89 of the world’s 192 nations, containing 44 percent of all people, were politically “free”; that is, they offered their citizens extensive political rights and civil liberties. Another 54 countries, which included 19 percent of the world’s people, were “partly free,” with more limited rights and liberties. The remaining 49 nations, home to 37 percent of humanity, fall into the category of “not free.” In these countries, government sharply restricts individual initiative. Between 1980 and 2005, democracy made significant gains, largely in Latin America and Eastern Europe. In Asia, India (containing 1 billion people) returned to the “free” category in In 2000, Mexico joined the ranks of nations considered “free” for the first time. Source: Freedom House (2005).
Sociology, Eleventh Edition

35. Politics in the united states
Sociology, Eleventh Edition

36. The Rise of the Welfare State
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

37. The Political Spectrum
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.

38. Where do you fall on the political spectrum? Why?
Discussion question
Where do you fall on the political spectrum?
Why?
Sociology, Eleventh Edition

39. Class, Race, and Gender
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

40. Figure (p. 452) Left-Right Political Identification of College Students, Student attitudes moved to the right after 1970 and shifted left in the mid-1990s. College women tend to be a bit more liberal than college men. Source: Astin et al. (2002) and Sax et al. (2003).
Sociology, Eleventh Edition

41. Voter apathy 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

42. DISCUSSION QUESTION
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

43. Theoretical analysis of power in society
Sociology, Eleventh Edition

44. Theoretical Analysis Pluralist model – linked to S-F.
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 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

45. Power beyond the rules
Sociology, Eleventh Edition

46. Political Revolution
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:
Rising expectations
Tend to happen when quality of life is improving.
Unresponsive government
Government unwilling or unable to reform.
Radical leadership by intellectuals
Revolution is often “university centered”. Students play crucial role.
Establishing new legitimacy
Guarding against the counterrevolution.
Sociology, Eleventh Edition

47. War and peace
Sociology, Eleventh Edition

48. A Sociological approach to war
Wars occur often but there is nothing natural about humans engaging in war.
Warfare is a product of society.
Sociology, Eleventh Edition

49. Militarism The world’s nations spend 1 trillion annually.
$ 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

50. Reducing Chances For War And Increasing Chances Of Peace
DETERRENCE
Balance of power (or terror) between societies.
Ex. Cold War – 50+ years
HIGH-TECHNOLOGY DEFENSE
Strategic defense initiative.
DIPLOMACY AND DISARMAMENT
Keep talking about reducing arms.
RESOLVING UNDERLYING CONFLICT
Increase spending on promoting peace rather than building up military.
Sociology, Eleventh Edition