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Social Problems, 13e D. Stanley Eitzen Maxine Baca Zinn Kelly Eitzen Smith Chapter 14 The Economy and Work
Social Problems, 13eD. Stanley Eitzen
Maxine Baca Zinn
Kelly Eitzen Smith
Chapter 14The Economy and Work
The Economy and Work
CH
AP
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4
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
