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This 3 page Class Notes was uploaded by Asif Khan on Wednesday November 11, 2015. The Class Notes belongs to SOC 201S at Old Dominion University taught by JONATHAN W LOPEZ in Fall 2015. Since its upload, it has received 12 views. For similar materials see AN INTRODUCTION TO SOCIOLOGY in Sociology at Old Dominion University.
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Date Created: 11/11/15
Economy Notes Economic Change gt EconomyA social institution dedicated to the production distribution and consumption of goods and services gt Industrialization 0 US economy continues to be shaped by changes brought about during the Industrial Revolution 0 Sociology developed as a discipline in part to come to terms with economic transition from a preindustrial to an industrial society gt DeindustrializationSystematic widespread withdrawal of investment in basic aspects of productivity such as factories 0 Can take form of corporate restructuring known as downsizing o DownsizingReductions in a company s workforce as part of deindustrialization gt Outsourcing 0 US firms have been outsourcing for generations 0 OffshoringTransfer of work to foreign contractors I Began with manufacturing jobs then office and professional jobs 0 Social costs of deindustrialization and downsizing cannot be overemphasized gt The Great Recession o A global financial collapse began in 2007 triggering an economic crisis o Unemployment became a widespread problem 0 More and more difficult for collegeeducated people to find and secure work 0 In the wake of the crisis economic stratification grew and corporations profited gt The Changing Face of the Workforce 0 During World War II when men were mobilized to fight abroad women entered the workforce in large numbers 0 With the coming of the civil rights movement in the 1960s minorities found numerous job opportunities opening to them 0 Number of Black Latino and AsianAmerican workers continues to increase at a faster rate than the number of White workers 0 As workforce has become more diverse companies have sought ways to adapt including workplace diversity programs Economic Systems gt CapitalismEconomic system in which owners of private property compete in the marketplace in pursuit of profit 0 Smith s The Wealth of Nations 1776 describes four basic principles I Pursuit of profit I Competition in the market I Law of supply and demand I LaissezfairePeople should be able to compete freely with minimal government intervention in the marketplace o In practice capitalism seldom meets Smith s ideals as monopolies form and the government intervenes to stop them or to otherwise interfere with the marketplace in what is perceived as the public interest I MonopolyControl of a market by a single business firm gt SocialismEconomic system under which the means of production and distribution are collectively owned 0 More govt control of businesses 0 Govtsanctioned products 0 Less choice in the marketplace 0 Less focus on personal profit gt Mixed EconomyEconomic system that combines elements of both capitalism and socialism o Capitalist nations regulate economic relations to protect consumers 0 US government took more active role during and after Great Recession I Government bailouts American Recovery and Reinvestment Act 2009 I Despite criticism claiming that these actions and others were moving the nation toward socialism most people hoped that their efforts would minimize negative effects of economic downturn gt Informal EconomyTransfers of money goods or services that are not reported to the government 0 Dysfunctional for a country s overall political and economic wellbeing 0 Also can be dysfunctional for workers