1. The Economy and Work

2. The Economy The economy operates in a predictable manner.
The social institution that organizes a society’s production, distribution, and consumption of goods and services
The economy operates in a predictable manner.
Goods: Commodities ranging from necessities to luxury items
Services: Activities that benefit others
The economies of modern high-income nations are the result of centuries of social change.

3. Agricultural Revolution
The earliest societies were hunters and gatherers with no distinct economy.
Four factors that made the economy a distinct social institution:
Agricultural technology
Job specialization
Permanent settlements
Trade

4. The Industrial Revolution
New sources of energies
Steam-fueled machine operation
Centralization of work in factories
Impersonal factories replaced cottage industries.
Manufacturing and mass production
Turning raw materials into a wide range of products

5. The Industrial Revolution
Specialization
Diverse division of labor and lower overall skill requirements
Wage labor
Working for strangers with intense supervision

6. The Information Revolution and Postindustrial Society
Postindustrial economy–A productive system based on service work and high-technology
The information revolution has altered the fundamental character of work in three ways:
From tangible products to intangible ideas
From mechanical skills to literacy skills
From factories to almost anywhere

7. Figure 16.1 The Size of Economic Sectors by Income Level of Country

8. Sectors of the Economy Primary sector Secondary sector Tertiary sector
Generates raw materials from the environment
Secondary sector
Transforms raw materials into manufactured goods
Tertiary sector
Generates services rather than goods

9. The Global Economy
Global economy–Expanding economic activity with little regard to national borders
This activity has four major consequences:
Global division of labor
Products pass through many nations
National governments no longer control the economic activity within their borders.
Few businesses control a vast share of the world’s wealth.

10. GLOBAL MAP 16.1 AGRICULTURAL EMPLOYMENT IN GLOBAL PERSPECTIVE

11. GLOBAL MAP 16.2 SERVICE-SECTOR EMPLOYMENT IN GLOBAL PERSPECTIVE

12. Capitalism
An economic system in which natural resources and the means of producing goods and services are privately owned
“Justice” in a capitalist system amounts to marketplace freedom.
Three distinct features:
Private ownership of property
Pursuit of personal profit
Competition and consumer choice

13. Socialism
An economic system in which natural resources and the means of producing goods and services are collectively owned
“Justice” in a socialist context means meeting everyone’s basic needs in a roughly equal manner.
Three distinct features:
Collective ownership of property
Pursuit of collective goals
Government control of the economy

14. Alternative Systems
Communism–A hypothetical economic and political system in which all members of a society are socially equal
Welfare capitalism–An economic and political system that combines a mostly market-based economy with extensive social welfare programs
State capitalism–An economic and political system in which companies are privately owned but cooperate closely with the government

15. Capitalism vs. Socialism
No system has yet been able to offer both political freedom and economic equality
Economic productivity
GDP is $13,500
Economic equality
More income disparity
Personal freedom
Emphasizes freedom to pursue personal self-interest
Economic productivity
GDP is $5,000
Economic equality
Less income disparity
Personal freedom
Emphasizes freedom from basic want

16. FIGURE 16.2 THE CHANGING PATTERN OF WORK IN THE UNITED STATES

17. Work in the Postindustrial Economy
The dual labor market
Primary labor market–Jobs that provide extensive benefits to workers
Secondary labor market–Jobs that provide minimal benefits to workers
Labor unions–Organizations of workers that seek to improve wages and working conditions through various strategies
Decline of unions
Shrinking industrial sector
Service jobs are unlikely to be unionized.

18. Figure 16.3 The Careers Most Commonly Named as Probable by First-Year College Students, 2006

19. Professions Theoretical knowledge Self-regulated practice
Prestigious white-collar occupations that require extensive formal education
Theoretical knowledge
Self-regulated practice
Authority over clients
Orientation to community rather than self-interest

20. Self-Employment, Unemployment, and Underemployment
Self-employment–Earning a living without being on the payroll of a large organization
Every society has some unemployment.
Jobs disappear as:
occupations become obsolete.
businesses change the way they do business.
companies downsize or close.

21. Self-Employment, Unemployment, and Underemployment
Underemployment: Lower salaries, fewer benefits, and reduced/no pensions
Many workers agree to cuts in pay and/or benefits.

22. Figure 16.4 Official U.S. Unemployment Rates for Various Categories of Adults, 2006

23. The Underground Economy
Economic activity involving income not reported to the government as required by law
Most of us occasionally participate in the underground economy in small ways.
Much of the underground economy is due to criminal activity.
The largest segment is people who fail to report legally earned income on their tax returns.

24. Race and Gender in the Workplace
In the past, white men have been the mainstay of the US labor force.
In the future, more workers will be women and minorities.
The workplace must develop programs and policies that meet the needs of a socially diverse workforce and encourage everyone to work together effectively and respectfully.

25. New Information Technology and Work
Computers are de-skilling labor.
Computers are making work more abstract.
Computers limit workplace interaction.
Computers increase employers' control of workers.
Computers allow companies to relocate work.

26. Corporations A few large corporations dominate the US economy.
Organizations with a legal existence, including rights and liabilities, apart from those of its members
A few large corporations dominate the US economy.
Economic concentration has created the conglomerate, a giant corporation comprising many smaller corporations.
Federal law forbids monopoly, the domination of a market by a single producer.
Oligopoly, the domination of a market by a few producers, is legal and common.

27. Politics and Government

28. The ability to achieve desired ends despite resistance from others
Power
The ability to achieve desired ends despite resistance from others
Government–A formal organization that directs the political life of a society
Governments demand compliance from the population.
Weber: Most governments don’t openly threaten their people.
Every government tries to make itself seem legitimate.

29. Power that people perceive as legitimate rather than coercive.
Authority
Power that people perceive as legitimate rather than coercive.
Traditional–Power legitimized through respect for long established cultural patterns
Rational-legal–Power legitimized by legally enacted rules and regulations

30. Power that people perceive as legitimate rather than coercive.
Authority
Power that people perceive as legitimate rather than coercive.
Charismatic–Power legitimized through extraordinary personal abilities that inspire devotion and obedience
Routinization of charisma–The transformation of charismatic authority into some combination of traditional and bureaucratic authority

31. Monarchy Absolute monarchy Constitutional monarchy
A political system in which a single family rules from generation to generation
Absolute monarchy
Rulers claiming power based on divine right
Modern examples: Saudi Arabia, Kuwait, Bahrain
Constitutional monarchy
Symbolic heads of state
Political principles rule
Elected official actually rules
Modern examples: Great Britain, Spain, Denmark

32. A political system that gives power to the people as a whole
Democracy
A political system that gives power to the people as a whole
Representative democracy–Authority in hands of elected leaders, accountable to the people
The US isn’t truly democratic .
Extensive use of unelected bureaucratic officials
Wealthy have more political clout than the impoverished.
Political economy
The interplay of politics and economics
Capitalist societies claim freedom while socialist societies claim security.

33. GLOBAL MAP 17.1 POLITICAL FREEDOM IN GLOBAL PERSPECTIVE

34. Other Political Systems
Authoritarianism–A political system that denies popular participation in government
Authoritarian government is indifferent to people’s needs.
Examples: Saudi Arabia, Bahrain, Ethiopia
Totalitarianism–A highly centralized political system that extensively regulates people’s lives
Seeks to bend people to the will of the government
Vietnam, North Korea

35. Figure 17.1 The Size of Government, 2005

36. The Rise of the Welfare State
Individualism
Welfare state–Government agencies and programs that provide benefits to the population
One in six US workers is a government employee.
The US welfare state is still smaller than those of many other high-income nations.

37. The Political Spectrum
Ranges from extremely liberal on the left to extremely conservative on the right
Economic issues
Social issues
Class, race, and gender
Party identification

38. Special-Interest Groups
People organized to address some economic or social issue
Special-interest groups
Strong in nations where political parties tend to be weak
Employ lobbyists to work on their behalf
Political action committee (PAC)–An organization formed by a special-interest group, independent of political parties, to raise and spend money in support of political goals

39. Voter Apathy
Americans are less likely to vote today than a century ago.
Only half of all registered voters participated in the presidential election. Participation rose to 60% in 2004.
Women slightly more likely than men to vote
Over 65 much more likely to vote than college-age
Non-Hispanic whites more likely to vote than African Americans
Hispanics least likely to vote
People with a bigger stake in US society are more likely to vote

40. Voter Apathy Conservatives: Apathy is political indifference.
Liberals: Apathy is alienation.

41. Theoretical Analysis of Power in Society
Pluralist model–An analysis of politics that sees power as spread among many competing interest groups
Power-elite model–An analysis of politics that sees power as concentrated among the rich
Marxist political-economy model–An analysis that explains politics in terms of the operation of a society’s economic system

42. Applying Theory Politics

43. The overthrow of one political system in order to establish another
Political Revolution
The overthrow of one political system in order to establish another
Political revolutions have common traits:
Rising expectations
Tend to happen when quality of life is improving
Unresponsive government
Government unwilling or unable to reform
Radical leadership by intellectuals
Thomas Hobbes: Intellectuals provide the justification for revolution.
Establishing new legitimacy
Guarding against the counterrevolution

44. Terrorism Characteristics:
Acts of violence or the threat of violence used as a political strategy by an individual or a group
Characteristics:
Define violence as a legitimate political tactic; bypasses established channels of negotiation
Used by governments as well as individuals
Democratic countries are especially vulnerable to terrorism because of broad civil liberties.
One person’s terrorist is another's freedom fighter.

45. War and Peace Wright’s five factors that promote war:
Perceived threats
Threats to people and territory
Social problems
Internal problems and frustration
Political objectives
Show of force and protecting one’s own property
Moral objectives
Rallying people around morality
Absence of alternatives
Limited options

46. War and Peace Social class and the military
"America's military seems to resemble the makeup of a two-year commuter or trade school outside Birmingham or Biloxi far more than that of a ghetto or barrio or four-year university in Boston."
Is terrorism a new kind of war?
Conventional warfare is symmetrical.
Terrorism is asymmetrical.

47. War and Peace The costs and causes of militarism Nuclear weapons
Military-industrial complex–The close association of the federal government, the military, and the defense industry
Regional conflict as a reason for continuing militarism
Nuclear weapons
Nuclear proliferation–The acquisition of nuclear weapons technology by more and more nations

48. War and Peace Mass media and war
The power of the mass media to provide selective information to a worldwide audience means that television and other media are almost as important to the outcome of a conflict as the military that is doing the actual fighting.

49. Pursuing Peace Deterrence High-technology defense
Balance of power between societies
High-technology defense
Strategic defense initiative
Diplomacy and disarmament
Keep talking about reducing arms
Resolving underlying conflict
Increase spending on promoting peace rather than building up military