Lecture Notes Flashcards

Overview of Economic Sectors

• Primary Sector:

  • Involves the extraction of raw materials from nature (e.g., agriculture, mining).
  • Historically significant, with about 80% of labor in agriculture 125 years ago.
  • Current decline to around 2% in the U.S. workforce due to industrialization and mechanization.

• Secondary Sector:

  • Involves manufacturing and construction, taking raw materials and turning them into products.
  • Peaked in the mid-20th century in the U.S., symbolizing the rise of the middle class through factory jobs.
  • Decline since the 1960s due to globalization (shifting manufacturing to countries with lower wages) and technological advancements (automation).

• Tertiary Sector:

  • Encompasses services rather than goods (e.g., healthcare, education, retail).
  • Represents a mix of low-paying, low-benefit jobs (like fast food) and high-skilled, high-benefit jobs (such as professional positions).
  • Includes aspirations of graduates entering the workforce.

Economic Systems

• Capitalism:

  • Characterized by private ownership of property and businesses.
  • Focuses on individual profit, competition, and consumer choice.
  • Emphasizes individual freedom to produce, sell, and pursue economic opportunities.
  • Derives wealth through personal achievement and market efficiency.

• Socialism:

  • Features collective ownership of resources, aiming for shared economic goals.
  • Government controls or regulates industries for the community's benefit.
  • Emphasizes a safety net (e.g., welfare, healthcare) for all citizens, aiming to reduce inequality.
  • Believes in a different notion of freedom: freedom from poverty and lack of opportunity.

• Convergence of Systems:

  • The U.S. incorporates some socialist elements (e.g., Social Security, welfare programs, Affordable Care Act) while retaining a capitalist structure.
  • Modern economies blend elements of both to address inequality and promote growth.

Bureaucracies

• Defined as formal organizations structured to achieve specific goals efficiently.

Characteristics of Bureaucracies:

1. Specialization of Duties:

   • Enhanced efficiency through specialized roles (e.g., teachers for specific subjects).
   • Expertise leads to better outcomes in specific fields.

2. Hierarchical Structure:

   • Clear levels of authority and responsibility (e.g., Board of Trustees at top, followed by the president, provost, deans, professors).
   • Each level has designated duties and powers.

3. Technical Competence:

   • Hired individuals possess the necessary skills or qualifications for their specific roles.
   • Emphasis on merit-based hiring practices.

4. Rules and Regulations:

   • Formal guidelines govern operations and ensure compliance across all levels.
   • Ensures fairness but can lead to impersonality.

5. Impersonality:

   • Adherence to rules can create a feeling of alienation; members may feel treated as numbers rather than individuals.

6. Goals and Documentation:

   • Focus on maintaining accurate records of performance and processes.
   • Required to justify decisions (e.g., firing or expelling individuals).

Critiques of Bureaucracy:

• Bureaucratic Alienation:

  • Employees may feel disconnected from their contributions due to strict hierarchies and protocols.

• Inefficiency:

  • Following procedures without questioning their relevance can reduce overall organizational effectiveness.

• Bureaucratic Inertia & Goal Displacement:

  • Organizations often shift focus from their original mission to self-preservation, continuing their existence rather than fulfilling their foundational goals.
  • Examples include shifts in mission statements and functions (e.g., YMCA, March of Dimes).