CH 14 Capitalism

The more one earns , the more one can
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The more one earns , the more one can
Enjoy leisure
Capitalism
Economic system in which resources are privately owned, investments are determined by private decisions, and prices, production, and the distribution of goods are determined by competition.
18th century new farming technologies led to an agricultural revolution that:
-helped increase output of goods which helped population to grow and caused value of land to increase. (Able to support more ppl so increase in population)
-innovated manufacturing and transportation technology (we now have robots which are more efficient)
-led to mass migration to cities, rise of wage labor
By the end of 18th century ,the Industrial Revolution had begun and the economy transitioned to one dominated by ;
Manufacturing, machinery, and unskilled factory work (learned one task and got really good at it)
With this wage labor came :
Monetization, the formation of the corporation, and limited liability ownership (lim liability separated personal life from business life)
Adam Smith was an economist that believed that
-competition is good,helps maintain a cohesive society (be the best bc you have competition)
-specialization increases productivity & innovation (division of labor, learn your part and make more efficient)
- using money rather then barter makes trading more efficient.
George Simmel believed that:
- changing from piecework payment to wage labor to a salary would depersonalize exchange. (Cobbler makes entire shoe which is personal, wage = makes standard shoes and you pick one , on salary you can make 1 shoe day or 10 still getting paid )
-great way to separate public and private spheres and give workers more freedom to enjoy the private, or leisure, sphere.(not held to responsibilities as much, like deadline for shoes)
Karl Marx believed that
- capitalism (bad) alienation in workers-including alienation from the products they produced,f rom the production process, from other workers, and from themselves and their creative tendencies. (you are producing one part of car so you're not seeing the whole thing. separates from creativeness)
- predicted both that capitalism would ultimately destroy itself and the the working class would rise against the capitalist class, leading to a period first of socialism and then of communism.
Max Weber
- linked rise of capitalism to technology, ideas, and beliefs, as well as the Protestant Reformation.
- Expressed concerns about capitalism because he thought people became obsessed with working and making money so they wold never enjoy life.
- weber felt modern industry and its associated bureaucracy and rationalism created an 'iron cage'
In society today, people actually earn less money compared to 1900s because;
- only men were supposed to work
-men were paid enough to provide for whole family. family wage= enough to support wife and kids
- unfortunately, the higher wage was at the cost of womens freedom and autonomy (made women dependent on men and marriage)
Compared to other industrialized countries, and some developing areas, American work longer hours and have ______ vacations benefits and ________generous family leave policies.fewer, lessEven when generous benefits available, worker often __________ take advantage of them, which suggests that work is central in the lives of AmericansdontThe Service SectorThe american economy now revolves around the strive sector, providing intangible services rather than the creation of a tangible product. (providing services to you that you pay for ex. valet parking, hospitals, hotels, restaraunts, professors, legal/finical advice. Connected to rise of employment in women)Globalizationrefers to the process that create and intensify worldwide social exchange and interdependencies it (2) - creates an increase in trade and economic exchanges. magnifies the division between the worlds rich and poor.The champagne-glass distribution illustrateshow the richest 20 percent hold 82.7 percent of the worlds income, whereas the poorest 60 percent hold just 4.6 percent.A corporation is a juristic person-an entity that has all the legal rights, duties, and responsibilities of a person, although their primary goal is generally pursuit of profit. ( Can buy/sell property and be sold in court, but aren't considered people but has some rights ppl have)A monopoly occurs whenthere is only one seller of a good or service in the market.(no competition, can charge whatever, so not good for consumer)An oligopoly is a handful of sellers who haveenough power to set prices through collusion or coordination. (gas stationsOffshoring-labor sent to developing nations with lenient labor laws in common (China, Mexico, no min wage, pay little for work)To fight for workers rights, workers sometimes form a union-a collective organization that formally unites for the purpose of collective bargaining.( teachers, nurses, etc. Easier to fight for what you need)