chp. 11 the economy

Example of class conflict

Billionaires are taking money from everyone else

Eduardo Galeano (writer)

Capitalism needs facism when workers push back with demands

• a few being rich is done by making others poor

• wrote The System

Capitalism

Private ownership of means of production: economic activity controlled by owners, corporations

• Rich get richer

• Pursuit of personal profit

• Competition

• Government policy of laissez-faire (marketplace unhindered)

• Employees don’t get paid as much as they are making

Laissez-faire

A government policy that allows the marketplace to operate without governmental interference

Neoliberalism

Created by Pinochet (dictator of Chile)

• Damages communities

Privatism

Hand over control to companies, hurts people

Socialism

• Alternative to capitalism

• Democracy throughout social structure

• Public ownership of the means of production

• Common planning

ex. public libraries/wikipedia

Egalitarianism

A belief in the equality of opportunity for

• the self-fulfillment of all

• equality rather than hierarchy in decision making

• equality in sharing the decisions/benefits of society

Shared monopoly

When four or fewer firms supply 50% or more of a particular market

Oligopoly

When a small number of large firms dominate a particular industry

• power of huge corporations over workers

Corporate globalization

Large companies control world economy, reduce jobs

Megamergers

Giant corporations merge together (ex. CVS health acquired Aetna and Verizon acquired yahoo)

• Lots of power

• Diminish jobs

Interlocking directorates

Direct Lock: the linkage between corporations that results when an individual serves on the board of directors of 2 companies

Indirect Lock: when 2 companies each have a director on the board of a 3rd company

Worker alienation

Separate from each other, themselves, and the products they create

Dangerous work

Sweatshops, labor laws violated, paid less

Problems of workers

Structural, not due to unmotivation

Unions

Support workers - business and government assault unions

Scientific management

Work is repetitive, divided into very specialized tasks using standardized tools and procedures, in order to maximize speed and efficiency

The Great Recession

Financial decline, hunger, homelessness in 2008

Economy/capitalism relation to the environment

If our economy was based on a different system → less environmental issues