Government and Economy Fair trade: Consumers in industrialized countries voluntarily pay above-market prices for certain foods so farm workers can receive higher wages Cultural relativism: Comparing farm work in developing countries to other jobs available to those workers

Government and Economy Economic system: social institution through which goods and services are produced, distributed, and consumed Political system: social institution founded on a recognized set of procedures for implementing and achieving society’s goals

Economic Systems Industrial society: Society that depends on mechanization to produce its goods and services Capitalism Socialism

Capitalism Capitalism: Economic system in which means of production are held largely in private hands Main incentive for economic activity is accumulation of profits Laissez-faire: Businesses compete with minimal government intervention Monopoly: Exists when a single firm controls the market

Socialism Socialism: Means of production and distribution owned collectively rather than privately owned Communism: Economic system under which all property is communally owned and no social distinctions are made on the basis of people’s ability to produce

The Informal Economy Informal economy: Transfer of money, goods, or services is not reported to the government Difficult to measure In developing nations, informal economy represents 40% to 60% and often unmeasured part of total economic activity

Table 14-1: Characteristics of the Three Major Economic Systems

Case Study: Capitalism in China China expected to become world’s largest economy by 2020 Chinese more interested in acquiring latest consumer goods Communist Party officials’ decision to open China’s economy to capitalism reduced omnipotent institution’s influence

Case Study: Capitalism in China The Road to Capitalism Communist party assumed control of China in 1949, outlawing profit-making By 1960s, China’s economy dominated by state-controlled enterprises In 1980s government eased restrictions on private enterprise By mid-1990s party officials began to give businesses to private entrepreneurs

The Chinese Economy Today Growing free-market economy brought significant inequality to Chinese workers Chinese capitalists now have to compete with multinational corporations By 2009, the Chinese were buying more automobiles than people were buying in U.S.

Chinese Workers in the New Economy Loosening state control led to rise in job mobility, increased opportunity, and prosperity for family-owned businesses Struggles include a lag between urban and rural salaries and worker safety, and pollution Many middle-aged urban workers lost jobs to rural migrants seeking higher wages With growth of a middle class, many Chinese seek same opportunities as Western workers

Power and Authority Political system: social institution responsible for implementing and achieving society’s goals Interacts closely with economic system: social institution thorough which goods and services are produced, distributed, and consumed Politics: “who gets what, when, and how” (Lasswell)

Power and Authority One cultural universal is the exercise of power and authority Politics: “who gets what, when, and how” (Lasswell) Sociologists concerned with social interactions among individuals and groups and their impact on the larger political and economic order

Power Power: ability to exercise one’s will over others (Weber) Sources of power in political systems Force: actual or threatened use of coercion to impose one’s political dissidents Influence: exercise of power through process of persuasion Authority: institutionalized power recognized by the people over who it is exercised

Types of Authority Three ideal types of authority (Weber) Traditional authority: legitimate power conferred by custom and accepted practice Rational-legal authority: power made legitimate by law Charismatic authority: power made legitimate by leader’s exceptional personal or emotional appeal to his or her followers Charismatic leaders often become well known by breaking with established institutions

Types of Government Monarchy: Form of government headed by a single member of a royal family Oligarchy: Form of government in which a few individuals rule

Types of Government Dictatorship and Totalitarianism Dictatorship: Government in which one person has nearly total power to make and enforce laws Totalitarianism: Involves virtually complete government control and surveillance over all aspects of a society’s social and political life

Types of Government Democracy: Government by the people Representative democracy: Elected members of legislatures make laws U.S. is representative democracy, but critics have questioned whether our democracy is representative

Political Behavior in the United States Participation and Apathy In U.S., only small minority of citizens, often from higher social classes, participate in political organizations on local or national level By 2008 election voter turnout was only 62% of eligible voters In 2010 general election, turnout fell below 42 percent Political participation makes government accountable to voters

Race and Gender in Politics In U.S., political strength is lacking in such marginalized groups as women and racial and ethnic minorities Progress toward inclusion of minority groups in government has been slow Female politicians enjoying more electoral success but evidence that media cover them differently

Research Today 14-1: Sovereignty in the Aloha State From a mainstream point of view, what might be the advantages and disadvantages of extending sovereignty to an indigenous group? Discuss using sociological concepts. Do some research on the legal basis for tribal sovereignty. How did American Indian tribes gain the status of separate nations?

Research Today 14-2: Why Don’t More Young People Vote? How often do you vote? If you do not vote, what accounts for your apathy? Are you too busy to register? Are community issues uninteresting to you? Do you think voter apathy is a serious social problem? What might be done to increase voter participation in your age group and community?

Power Elite Models Elite model: society ruled by small group of individuals who share common set of political and economic interests Mills’ Model Power elite: Small ruling elite of military, industrial, and governmental leaders Power elite includes relatively few members and operates as a self-conscious, cohesive unit Current research on global power elite on-going

War 3 sociological approaches Global view studies how and why nations become engaged in military conflict Nation-state view stresses interaction of internal political, socioeconomic, and cultural forces Micro point of view focuses on social impact on individuals and their group

Peace Peace: Absence of war and proactive effort to develop cooperative relations among nations Global Peace Index: U.S. ranked 97 on list of 121 nations Since 1990s, 90% of armed conflicts occurred within states Nations cannot maintain security through threatening violence

Terrorism Terrorism: Use or threat of violence against random or symbolic targets in pursuit of political aims Hope to intimidate society and bring about a new political order Essential aspect of contemporary terrorism involves use of the media Governments becoming concerned about malicious cyberattacks

The Changing Face of the Workforce U.S. workforce is constantly changing Sociologists and labor specialists foresee workforce increasingly composed of women and racial and ethnic minorities 52% of new workers expected to be women from 1988 to 2018 More diverse workforce means relationships between workers more likely to cross gender, racial, and ethnic lines

Deindustrialization Deindustrialization: systematic, widespread withdrawal of investment in basic aspects of productivity Can take the form of corporate restructuring Downsizing: reductions in a company’s workforce as part of deindustrialization Social costs cannot be overemphasized

Offshoring Offshoring: transferring work to foreign contractors Latest tactic in raising profits by reducing costs Conflict theorists: this aspect of globalization furthers social inequality

Research Today 14-3: Affirmative Action Is affirmative action part of the admissions policy at the college or university you attend? If so, do you think the policy has helped to level the playing field? What percentage of the class supports affirmative action in hiring and college admissions? How does that group break down in terms of gender, race, and ethnicity?

Microfinancing Looking at the Issue Microfinancing: lending small sums of money to poor so they can work their way out of poverty Developed by Muhammad Yunus in Bangladesh Idea has been underwritten by over a thousand for-profit banks and multinational organizations Some lenders are taking advantage of the poor

Microfinancing Applying Sociology Poor people can significantly improve their circumstances through mutual support (Collins) 90% of microcredit recipients are women Women’s economic status critical to well-being of children and a healthy household environment Critics: creation of small home-based industries reduces the demand for formal employment opportunities

Microfinancing Initiating Policy Need to reduce overlending and monitor the success of small loans in helping borrowers to escape poverty Lenders need to work with political leaders to ensure that they do not regard one another as competitors for political support from the poor Development of this type of government policy a major undertaking