ModernizationThe Impact of Modernity on Economy “That institution in society that arranges for the production and distribution of the goods needed for survival”

Three Great Revolutions

•Political Revolution▫destroyed the great monarchies and

feudalism▫rise of democratic societies▫power resides in the people

Three Great Revolutions•Scientific Revolution

▫Rise of scientific method (reason)▫Two key consequences:

Technological innovations ---> industrial revolution

Declining significance of a religious world view

Three Great Revolutions•Industrial Revolution

▫specialized, machine-based production▫huge increase in productivity▫birth of the middle class

Sociological Consequences of Industrialization•Industrialization:

▫"the replacement of living energy sources with non-living energy sources"

•Social Differentiation:▫"The process by which different social

categories emerge and by which people come to fill those categories"

Sociological Consequences of Industrialization•Specialization

▫One type of social differentiation▫"the transformation from single,

multiple-purpose statuses/roles to multiple, single-purpose statuses/roles)”

Consequences of Specialization (3 Predictions)•Optimistic (Adam Smith)

▫The Wealth of Nations (1776)▫dramatically increases productivity ▫creates new jobs ▫mechanism for social organization

economic interdependence: exchange relationships

Consequences of Specialization (3 Predictions)•Cautiously Optimistic (Emile Durkheim)

▫The Division of Labor in Society (1893) ▫"Is specialization really a viable form of

social organization?"▫Solidarity: "commonality of purpose

and social identity” Necessary condition for society to exist

Consequences of Specialization (3 Predictions)•Pre-industrial societies: "mechanical

solidarity"▫simple division of labor

(gender and age)▫how will we achieve solidarity in an age of

specialization?

Consequences of Specialization (3 Predictions)•Industrial societies could produce

solidarity▫organic solidarity:

economic interdependence (like Smith) ▫BUT: specialization could produce

anomie (a-nomos) "a condition of societal

normlessness

Consequences of Specialization (3 Predictions)•Pessimistic: Karl Marx

▫(Capital, 1867, 1885, 1894)•concerned about the types of work in

an industrial economy •Alienation: separation/estrangement

from:▫production process itself ▫finished products of our labor ▫our fellow workers ▫ourselves

Industrialization & Stratification•Stratification:

▫"vertical ranking of members of a society, based upon their access to and control over scarce resources“

▫Another type of social differentiation

Industrialization & Stratification•Max Weber

▫wealth class stratification

▫honor (prestige) status stratification

▫power "party" stratification (politics)

From Household Economy to Industrial Capitalism•Household Economy

▫Produced subsistence ▫work was performed in and for the

household▫money was used as a unit of account▫barter/trade for items they did not

produce▫orientation away from the market

From Household Economy to Industrial Capitalism•Capitalism

▫a set of social practices AND a way of thinking about and organizing economic activities

•3 distinct features ▫The Market

impersonal buying and selling of commodities

From Household Economy to Industrial Capitalism

Goods produced with the expressed intent of selling them For more than it cost to produce them

▫Distinct Economic Institutions Organizations specializing in the

manufacture, distribution and sale of specific products

“Double Dependence”▫Profit Orientation (the “ism” of capitalism)

From Household Economy to Industrial Capitalism

Marx: commodity production circuit: M-C-M'

M = surplus value (profit) come to see all aspects of org. according to

effects upon profit Marx: where does added value come

from? AND where does it go? Conflict

Two Predictions About Stratification

•Marx: Two-Class Society▫Bourgeoisie and Proletariat▫Few wealthy, many poor

•Class Consciousness▫proletariat: a class for themselves

•Revolution▫Capitalism: last stage on the way to a just

society (Communism)

Karl Marx’s Prediction of Stratification System of Industrial Capitalist Economies

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Number of People

Two Predictions About Stratification•“Adam Smith": Generally Higher

Standard of Living for Most▫a few wealthy▫the majority will do quite well

"middle class"▫a few poor

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Adam Smith’s Prediction of Stratification System of Industrial Capitalist Economies

Number of People