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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
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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)
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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.
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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.
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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
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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.
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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
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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.
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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).
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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.
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Ultimately many workersdevelop
In other words,
they may not be aware of their exploited position
and their common plight.
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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.
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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.
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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
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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.
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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.
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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.
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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
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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
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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
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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
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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.
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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.
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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
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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
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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.
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n Real wealth is concentrated among a fewindividuals and corporations: examples inthe book.p. 37)
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n Examples in the book..(p. 37-38)
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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
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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.
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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
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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
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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.
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2. The ability to get
what one wants
from someoneelse, by force,
authority,
manipulation, orpersuasion
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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.
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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.
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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.
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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.
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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