The Economy: Money & Work

Chapter 11

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The Transformation of Economic Systems

The “Market”The mechanism by which we

establish value in order to exchange goods and services

The “Economy”The particular dynamics of the

market

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Pre-Industrial & Industrial Societies

Preindustrial SocietiesSubsistence EconomyGathering resources; following the

available food supply Industrial Societies

Machine-powered by fuelsEmergence of a surplus“Conspicuous Consumption”

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Postindustrial Societies

Service Sector Growth Huge Surplus of Goods Extensive Trade Between Nations Wider Variety of Goods Available Information “Explosion” Global “Village” (Communication

Technologies)

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The Transformation of the Medium of Exchange

Mediums of ExchangeBarter MoneyCurrency

• Stored value & The gold standardFiat Money

• Gross National Product (GNP) & InflationCredit CardDebit Card

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World Economic Systems

CapitalismPrivate ownership of the means

of productionThe pursuit of profitMarket competition

Welfare (State) Capitalism vs. Laissez-Faire CapitalismMarket Restraints

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World Economic Systems

SocialismPublic ownership of the means of

productionCentral planningDistribution of goods without a profit

motive

Democratic Socialism“Underemployment”

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Changes to Capitalism and Socialism

CapitalismIncreased “socialist” policies

SocialismIncreased “market” (capitalist)

policies Convergence Theory

Adopting policies of each type of economy

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Neoliberalism & Social Conservatism

Neoliberalism Social Conservatism

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Capitalism in a Global Economy

Corporate Capitalism Corporation: a business that is treated in law

as a person• Separation of ownership and management

Oligopolies• Several large corporations that dominate a

single industry• Interlocking Directorates

Interlocking Directorates Multinational Corporations

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Applying Sociological Theories Symbolic Interactionism

Work as a status symbol Functionalist Perspective

Mechanical SolidarityOrganic SolidarityThe Global Division of Work

Conflict PerspectiveTechnology: Who Benefits?Inner “Circle of Power”

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Applying Sociological Theories (cont.)

Feminist Perspectives First-wave: voting Second-wave: employment equity

but job ghettos and glass ceilings remain in force

Third-wave: irrelevant to inequality in the work place

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Work in Canadian Society

Primary SectorExtract natural resources

Secondary SectorTurn raw materials into

manufactured goods Tertiary Sector

Provide services

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Work in Canadian Society

Women and Work: Quiet Revolution The Underground Economy:

Informal and “off-the-books” economic activities

Shrinking Paycheques

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Work in Canadian Society (cont.)

Patterns of Work and LeisureTrends in LeisureWork in the Post-Industrial

Society

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Leisure and the Life Course

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The Future: Facing the Consequences of Global Capitalism

“Leisure revolution” Knowledge/information/service

economy