Social Problems, 13eD. Stanley Eitzen

Maxine Baca Zinn

Kelly Eitzen Smith

Chapter 14The Economy and Work

The Economy and Work

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Learning Objectives

14.1 Explain the major differences and critiques

of capitalism and socialism.

14.2 Describe the transformation of the U.S.

economy from industrialized to an

information/service economy.

14.3 Understand how the structure of work is a

major source of social problems.

14.1 - Capitalism and Socialism

• Capitalism

• Socialism

LO 14.1 - Capitalism

• Four conditions must be present for

pure capitalism:– Private ownership of property

– Personal profit

– Competition

– Laissez-faire government

LO 14.1 - Socialism

• Five principles:– Democratism

– Egalitarianism

– Community

– Public ownership of production

– Planning for common purposes

LO 14.1

For socialism to operate in its ideal form, the

government needs to be __________.

A. laissez-faire

B. totalitarian

C. democratic

D. authoritarian

LO 14.1

For socialism to operate in its ideal form, the

government needs to be __________.

A. laissez-faire

B. totalitarian

C. democratic

D. authoritarian

LO 14.1

The United States is purely capitalistic.

A. True

B. False

LO 14.1

The United States is purely capitalistic.

A. True

B. False

14.2 - Mega Economic Trends

• Globalization

• The Transformation of the Economy:

From Manufacturing to Services

• The Changing Nature of Jobs

• The Great Recession (2007–2010 and

Beyond)

LO 14.2 - Globalization

• The processes by which people are increasingly

interconnected economically, politically,

culturally, and environmentally

• Global Trade

• Capital Flight

Container ships enter U.S. ports with goodsproduced elsewhere to be sold here. Themerchandise is relatively cheap, but there isa high cost in fewer jobs for U.S. workers.

LO 14.2

LO 14.2 -The Transformation of the Economy:

From Manufacturing to Services

• Structural transformation of the economy

– From agricultural to manufacturing

– From manufacturing to a service and

information

• Offshoring

• Outsourcing

LO 14.2 - The Changing Nature of Jobs

• Rapid adjustment

• “Creative destruction”

• Sunset Industries

• Contingent work

• Homeshoring/homesourcing

• Sunrise industries

LO 14.2 - Explorer Activity: Work and the

Economy: Stanford and the Silicon Valley

http://www.socialexplorer.com/pearson/plink.

aspx?dest=http%3a%2f%2fwww.socialexp

lorer.com%2fSpiceMap%2f%3fv%3d6fe42

0b8f0144079

Please log into MySocLab with your

username and password before accessing

this link.

LO 14.2 - Video: ABC 20/20: The Ultimate

Rags to Riches Story

http://abavtooldev.pearsoncmg.com/sbx_vid

eoplayer_v2/simpleviewer.php?projectID=M

SocL_ABC2008&clipID=The_Ultimate_Rags

_To_Riches_Story.flv&ui=2

LO 14.2

LO 14.2 - The Great Recession (2007-2010

and Beyond)

• Prelude to the Economic Crisis

• The Ensuing Economic Crisis

– Unemployment

– Housing woes

– Financial decline

– Personal bankruptcies

– Downward social mobility

– Poverty

– Hunger

– The new homeless

LO 14.2

Some areas of the U.S.experienced seriousdeclines in housingvalues during the GreatRecession, resultingin distress sales, foreclosures, and owners walking away from their mortgages.

LO 14.2

LO 14.2

In any economic shift, there will be

__________, but the most recent shift was

rapid and did not allow people to adjust to

the new economy.

A. displaced workers

B. decreased unemployment

C. housing changes

D. job security

LO 14.2

In any economic shift, there will be

__________, but the most recent shift was

rapid and did not allow people to adjust to

the new economy.

A. displaced workers

B. decreased unemployment

C. housing changes

D. job security

LO 14.2

The unemployment rate underestimates the

problems of a changing economy.

A. True

B. False

LO 14.2

The unemployment rate underestimates the

problems of a changing economy.

A. True

B. False

14.3 - Work and Social Problems

• Control of Workers

• Alienation

• Dangerous Working Conditions

• Sweatshops

• Unions and Their Decline

• Discrimination in the Workplace: Perpetuation of Inequality

• Job Insecurity

• Benefits Insecurity

• Increased Workload

• Worker Compensation

• The Problem: Workers or Jobs?

LO 14.3 - Control of Workers

• Adverse working conditions

• Scientific management

• Bureaucratic control

• Monitoring

• Extortion

LO 14.3 - Alienation

• Separation of human beings from each

other, from themselves, and from the

products they create

• Karl Marx

– Worker alienation = unfulfilled personal

satisfaction

LO 14.3 - Dangerous Working Conditions

• Occupational Safety and Health

Administration (OSHA)

• Occupational dangers

LO 14.3 - Sweatshops

• Substandard work environment

• Most likely in the garment industry

– Modern-day slavery

• Use of children

LO 14.3 - Unions and Their Decline

• In the past, labor unions have been

extremely important in changing

management–labor relations.

• 1950s membership: 35 percent

• 2010 membership: 11.9 percent

LO 14.3 - Discrimination in the Workplace:

Perpetuation of Inequality

• Equal Employment Opportunity

Commission

– Handles charges of discrimination

– 50,000 complaints filed annually

• Segmented Labor Market

• Male Dominance at Work

LO 14.3 - Job Insecurity

• Official unemployment rate is misleading

– Discouraged workers

• Reserve army of the unemployed

LO 14.3

LO 14.3

LO 14.3 - Benefits Insecurity

• U.S. corporations have been reducing

benefits to workers

– Bankruptcy

– Two-tiered system

LO 14.3 - Increased Workload

• Three reasons for increased workload:

– Wage gap creates incentive to work more

– Lower wages and increased expense of

housing, transportation

– Businesses require more hours to offset costs

of hiring new employees

LO 14.3 - Worker Compensation

• Median income fell 9.8 percent from the

beginning of the Great Recession

– Healthcare costs rose

– College tuition increased

– Worker productivity rose

LO 14.3

LO 14.3 - The Problem: Workers or Jobs?

• Jobs have been replaced by machines

• Available jobs pay minimum wage or

slightly above with few if any benefits

• The problem is structural

LO 14.3

As corporations move overseas and

machines replace workers, wages are

__________.

A. increasing

B. depressed

C. equalizing

D. unionize

As corporations move overseas and

machines replace workers, wages are

__________.

A. increasing

B. depressed

C. equalizing

D. unionize

LO 14.3

The wage gap creates incentive to work

more.

A. True

B. False

LO 14.3

The wage gap creates incentive to work

more.

A. True

B. False

LO 14.3

Discuss the changing economic structure of

the United States and how it will impact

workers over the next couple generations.

LO 14.3

Question for Discussion