1. Sociology, Tenth Edition
The Economy and Work
Sociology, Tenth Edition

2. Agricultural Revolution
The Economy -- The social institution responsible for organizing the production, distribution, and consumption of goods and services
Four factors that made the economy a distinct social institution
Agricultural technology
Job specialization
Permanent settlements
Trade
Sociology, Tenth Edition

3. Industrialization Introduced Five Notable Changes To Western Societies
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
Specialization
Diverse division of labor and lower overall skill requirements
Wage labor
Working for strangers with intense supervision
Sociology, Tenth Edition

4. The Information Revolution
Postindustrial economy– a productive system based on service work and high-technology
The information revolution has altered work the fundamental character of work in three ways
From tangible products to intangible ideas
Creating and manipulating symbols in modern society
From mechanical skills to literacy skills
Speaking, writing, and computer knowledge
From factories to almost anywhere
Laptops, cell phones, virtual office
Sociology, Tenth Edition

5. Figure 16-1 The Size of Economic Sectors by Income Level of Country
Sociology, Tenth Edition

6. Sociology, Tenth Edition
Sectors Of The Economy
Primary sector
Generation of raw materials from the environment
Low income countries = 23% of economy
High income countries = 2% of economy
Secondary sector
Transformation of raw materials into manufactured goods
Growth rapid in all industrialized nations or those entering the phase
Tertiary sector
Economy generates services rather than goods
Low income countries = 38% of economy
High income countries = 68% of economy
Sociology, Tenth Edition

7. Sociology, Tenth Edition
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 countries
National governments n longer control the economic activity within their borders
A small number of businesses now control a vast share of the world’s wealth
Sociology, Tenth Edition

8. Sociology, Tenth Edition
CAPITALISM
An economic system where the natural resources and the means of producing goods and services is privately owned
Three distinct features:
Private ownership of property
Key concept of capitalism
Pursuit of personal profit
Simply a “matter of doing business”
Competition and consumer sovereignty
The “invisible hand” is at work so leave the market alone
Sociology, Tenth Edition

9. Sociology, Tenth Edition
SOCIALISM
An economic system where the natural resources and the means of producing goods and services are collectively owned
Three distinct features:
Collective ownership of property
Limits the right to private property
Pursuit of collective goals
Pursuit of profits stands at odds
Government control of the economy
Centrally controlled economy
Consumers should not drive economy
Sociology, Tenth Edition

10. Sociology, Tenth Edition
Alternative Systems
Communism – a hypothetical economic ad 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
Sociology, Tenth Edition

11. CAPITALSIM VS. SOCIALSIM
Economic productivity
GDP is $5,000.00
Economic equality
Less income disparity
Overall well-being
Lower standards of living, but less disparity
Personal freedom
Stress is placed upon freedom from basic needs
Economic productivity
GDP is $13,500.00
Economic equality
More income disparity
Overall well-being
A high quality of life, but greater disparities
Personal freedoms
Are the heart of a capitalistic system; Need creative forces
Sociology, Tenth Edition

12. Sociology, Tenth Edition
THE WORKFORCE
THE DUAL LABOR MARKET
PRIMARY LABOR MARKET
EXTENSIVE BENEFITS TO WORKERS
SECONDARY LABOR MARKET
MINIMAL BENEFITS TO WORKERS
LABOR UNIONS
ORGANIZED LABOR SEEKING BETTER WAGES AND BENEFITS FOR MEMBERS
DECLINE OF UNIONS
LOSS OF HIGHLY UNIONIZED JOBS
CONCESSIONS HAVE INCLUDED DISSOLUTION OF UNIONS
MANY TEMPORARY WORKERS THESE DAYS
Sociology, Tenth Edition

13. National Map 16-1 Labor Force Participation across the United States
Sociology, Tenth Edition

14. TRAITS OF PROFESSIONALS
Profession – a prestigious white color occupation that requires extensive formal education
Theoretical knowledge
Extensive schooling
Self-regulated practice
Participation in associations
Authority over clients
Follow my suggestions
Orientation to community rather than self-interest
Not the pay, but the help
Sociology, Tenth Edition

15. TRAITS OF PROFESSIONALS
PARAPROFESSIONALS
NOT ABLE TO CLAIM FULL PROFESSIONAL STATUS
Includes paralegals & medical technicians
SELF-EMPLOYMENT
EARNING A LIVING WITHOUT WORKING FOR A LARGE CORPORATION
WOMEN FIND FREEDOM AND OPPORTUNITY
Sociology, Tenth Edition

16. Effects of Computers on Work
“De-skilling” labor
Machines make decision-makers obsolete
Making work more abstract
Understanding rather than “doing”
Limiting workspace interaction
Isolates workers
Enhance employer’s control of workers
Electronic monitors
Sociology, Tenth Edition

17. Sociology, Tenth Edition
CORPORATION AN ORGANIZATION WITH A LEGAL EXISTENCE, INCLUDING RIGHTS AND LIABILITIES, APART FROM THOSE OF ITS MEMBERS
ECONOMIC CONCENTRATION
IN 2002, WAL-MART WAS THE LARGEST
$214 BILLION IN REVENUE
700,000 EMPLOYEES
CONGLOMERATES - SEVERAL SMALLER CORPORATIONS
STRATEGY FOR DIVERSIFYING
INTERLOCKING DIRECTORATES
COMPETITION IS A GREY AREA
MONOPOLY: DOMINATION OF A MARKET BY ONE CORPORATION
OLIGOPOLY: DOMINATION OF A MARKET BY A FEW CORPORATIONS
Sociology, Tenth Edition

18. Figure 16.5 Average Hourly Wages for Workers in Manufacturing, 2002
Sociology, Tenth Edition