JLF Chapter 2

7/31/2019 JLF Chapter 2

1/40


2/40

n P. 30: The thesis of this book is that the problems of U.S. societyresult from the distribution of power and the form of the economy.

Eitzen et al argue that to understand social problems one must

examinethe political and economic realities of interest groups andalso power, powerlessness, and domination.the state is not a

neutral agent of the people but its biases in favor of those with

wealththe upper social classes and the largest corporations.

n Contrary to popular belief, the authors claim that theU.S. systemdoes not produce a society that is democratic, just , and equal inopportunity. Rather, we find that the United States is an upside-down

society, with the few benefitting at the expense of the many.

n Our society itself is the source of social problems.n Part of the problem is our mode of economic production


3/40

Capitalism: a mode of economic production whosebasis is the private ownership of capital. An

economic system in which capitalists own the meansof production (land, machines, factories, commercial

enterprises,) and distribution, and are able to

purchase the labor of others, i.e., workers/proletariat.

Economic development is proportionate to theaccumulation and reinvestment of profits gained in afree market. (True modern capitalism occurred in

19th century USA and Europe)


4/40

n Capitalism depends on threeconditions:

1. The private ownership of property

2. The pursuit of maximum profit

3. Competition based on the economic

principles of supply and demandThese principles come from.


5/40

n A Scottish political economist philosopher,considered to be the father of modern capitalism

n Smith argued that the laws of the marketplaceregulate prices and product-quality and that theconcept of competition summarizes the basis of the

laws of the marketplace.


6/40

n Smith also argued for what has cometo be known as laissez-faire, a

government policy of allowing the

marketplace to operate unhindered

In his view, a government policy oflaissez-faire is needed for the threeconditions of capitalism to work effectively


7/40

Welfare capitalism is a system of private, employer-basedsocial welfare provisions that first gained prominence in the

United States from the 1880s through the 1920s.

Promoted by business leaders during a period marked bywidespread economic insecurity, social reform activism, and

labor unrest, it was based on the idea that Americans should

look not to the government or to labor unions but to the

workplace benefits provided by private-sector employers forprotection against the fluctuations of the market economy.

According to its proponents ,welfare capitalism was a new,more enlightened kind of capitalism, based on the ideals of

corporate social responsibility and business-labor cooperation

rather than unfettered individualism and class conflict.


8/40

It was also a way to resist government regulation ofmarkets, independent labor union organizing, and the

emergence of a welfare state. For all its promise ofindustrial harmony, welfare capitalism was a way tokeep private employers firmly in control of labor

relations.

Read more:http://www.answers.com/topic/welfare-capitalism


9/40

n there are many These include:

Exploitation, greed, corruption, undue influence overpeoples livelihoods and over community, social

institutions such as the government, media, education

systems, health care, legal system. In short, the

conditions that lead to the creation and perpetuation of

many social problems.


10/40

n Karl Marx is the mostfamous critic of capitalism,

outlining his objections in

the Communist Manifesto of1848 (at the same time

Dickens was writing about

exploitation of the poor and

working class in England).


11/40

1. Origins of the present conflict model of society

2. The insight that power originates in economic production andthe basis of social order is the production of economic goods

3. The theory that social change is based on antagonism

between the social classes and is evolutionary as human

societies develop and move from one mode of economic

system to another. Just as feudalism gave way to capitalism,In Marxs model, capitalism would give way to socialism,

which would eventually give way to communisma utopia of

communal living and ownership of the means of production

with no state. So far, there has never been a communist

state.


12/40

Ultimately many workersdevelop

In other words,

they may not be aware of their exploited position

and their common plight.


13/40

n 5. Superstructure: Marx is also responsible for theinsight that the social class that owns the means of

economic of production molds societal values andnon-economic institutions, such as education,

religion, family, media, and government to maintain

its control over the means of production.


14/40

n Marx claimed that the economicbase of a society is manifested in

this superstructure of society.

For example, individualism and

competition are highly cherishedAmerican values because they

help to preserve the status quo

and are used to justify the huge

economic chasm between the rich

and the poor in the USA; they are

reflected in the tendency to blame

the poor for being poor; in suchaxioms as pull yourself up by

your boot straps, when the going

gets tough the tough get going,

winner take all mentality, and

glorification of rags to riches

stories and the self-made person.


15/40

n Marx was concerned about thesocial origins of worker

alienation, i.e., being alienated

from one

s work, alienatedfrom the product created byone's labor (whatever the

product is, from a thing to a

service), alienated fromhumanity, and alienated from

the human species. Marxargued that human beings arecreative beings and that when

they are denied their creativity,they become alienated an

unhealthy, undesirable

condition that prevents the

exercise and fulfillment of


16/40

n Marx was interested in developingworker class interests by helping them develop what he called

. Class Consciousness is a state where

the working-class would become a class of themselves and themselves.

To be a class themselves, members of the working-class would haveto realize that they are being exploited and to organize politically to

change the laws of society.

To be themselves, the working-class would be conscious of theirposition and therefore, the working class would naturally do something to

stop the exploitation.


17/40

n The union movement is anexample of workers working

for their class interests.

Marx would argue thatworkers demanding

universal health care as a

right of citizenship is

working for ones class

interests and would argue

that for a worker to believeotherwise is false

consciousness, as is the

demonization of unions by

non-union workers, state

and federal governments,

etc.


18/40

n Socialism: state ownership of capitaln Any of various theories or systems of social

organization in which the means of producing anddistributing goods is owned collectively or by acentralized government that often plans and

controls the economy.

n The stage in Marxist-Leninist theory intermediatebetween capitalism and communism, in whichcollective ownership of the economy under the rule

of the proletariat has not yet been successfully

achieved.


19/40

n Socialism depends on five basic principles: : an unyielding and uncompromising

reliance upon the wishes of the public todetermine the policies and practices of thestate, the workplace, the schools, and the

community

: a commitment to equality ofopportunity, equality in decision-making, andequality in sharing the benefits of society. The

key is when all citizens receive the necessities

of life


20/40

3. : the means of cooperation

and a sense of belonging

4. of the means ofproduction

5. to assure

society that chaos, institutional

coordination, and undue favoritism will notoccur


21/40

n There are very few socialist states:the Peoples Republic of China, Cuba,

Laos, and Vietnam; past socialist

states, include: Soviet Union,

Czechoslovakia, East Germany, and

other former eastern block states.

6


22/40

n It minimizes individual freedom andchoice

n Government monopoly is inefficientn Taxes are too highn Motivation to succeed is stifledn These conditions create economic

mediocrity


23/40

n Mixture of capitalism and socialism (often wronglycalled socialist or even communist)

n These follow the principles and policies of a socialdemocratic party.

n States with prominent social democratic policiesand parties: Sweden, Norway, Iceland, Denmark,

Finland, Netherlands, Canada, Germany, Ireland,

Israel, Japan, Italy, Switzerland, UK, and SouthAfrica. (see Ch 1, p. 13)

n The USA is the only post-industrial society without astrong social democratic party.


24/40

n Features: Social subsidiesinclude: extensive support

for the arts, public spaces,

universal preschooleducation, housing,

subsidies, healthcare,

childcare facilities, and

extended unemployment

benefits

n Progressive taxation fundsthe state, as do sales and

payroll taxes.


25/40

n While the USA can be definedas a welfare capitalist

economic system, make no

mistake that there is a

concentration of private and

corporate wealth. Corporatewealth is seen in (p. 31-34)

Monopolistic Capitalism Megamergers Interlocking Directorates


26/40

n Direct Interlock: the linkage betweencorporations that results when an

individual serves on the board ofdirectors of two companies

n Indirect Interlock: when two companieseach have a director on the board of athird company


27/40

nAmerican companies are expanding inoverseas markets because profits tend

to be higher

n Semi-skilled and skilled jobs shift fromU.S. to other countries

n Wield power over worlds economy.


28/40

n Real wealth is concentrated among a fewindividuals and corporations: examples inthe book.p. 37)


29/40

n Examples in the book..(p. 37-38)


30/40

n Exacerbate the unequal division of wealth inthe United States, which is already the most

unequal in the Western worldn Increase the national debtn Reduce government spending for programs

for the less fortunate

n Weaken public institutions that benefitsociety


31/40

n Special interest groups violate the principleof democracy

n Special interest groups deflect the politicalprocess for their own benefit

n Lobbyists speak only for the interests of thegroup they represent, not for the American

people. Over time they have become moreinfluential in federal governance.


32/40

n Campaign financing is one of the mostundemocratic features of U.S. political

systemn Campaigns are funded by candidates

and special interest groups

n Contributors gain access to, andinfluence over, politicians and thevotes they cast in the legislature


33/40

n Being wealthy or having access to wealth isessential

n The two-party system limits choices amongcandidates and creates a winner take all

political system


34/40

1. Systemic imperatives: the economicand social constraints on political

decision makers that promote thestatus quo: recent examples.

1. Bailouts, etc. and the awarding of recordbonuses in US banking.


35/40

2. The ability to get

what one wants

from someoneelse, by force,

authority,

manipulation, orpersuasion


36/40

3. To the poor: only when the poor constitute a threat

4. To businesses: corporate welfare, subsidies andtrickle-down economics (also known as voodoo

economics as the rich have become increasingly

richer since 1980 and the rest of the USA, less well

off). See Table 2.1, p. 39.


37/40

n During wartime, the military draft affects the poordisproportionately and also recruits

disproportionately from working and poor classes.

n The poor absorb the costs of societal changesn Unemployment is maintained as government policy

and in times of economic prosperity can be called

healthy, as it keeps wages down, workers

competing for jobs, etc.


38/40

n Military goods are sold to foreign governments,which benefits U.S. defense contractors

n U.S. supports foreign governments that supportAmerican corporations, even if the foreigngovernment is tyrannical

n U.S. intervenes in foreign countries if U.S. businessinterests are threatened.

n USA gives billions of dollars in foreign aid tocountries that then loan the money back to us,increasing national debt.


39/40

n It makes it harder for the governmentto solve social problems

n The have-nots of society are notrepresented among the decisionmakers

n The money chase creates part-timeelected officials (on two or four yearterms) and full-time, permanent fundraisers.


40/40

n Money diminishes the gap between the two major politicalparties; contrary to political and media rhetoric, the USA two-party system creates political parties that are fundamentallynot that different.

n The money chase in politics discourages voting and civicparticipation

n Special interest groups get special access to decision-makersand receive special treatment from them

JLF Chapter 2

Documents

Transcript of JLF Chapter 2