CHAPTER 12 SUMMARYWork is a physical or mental activity that accomplishes or produces something, either goods or services. Work is essential to a society’s survival. Many find satisfaction from work relationships and expand socialwork relations to private relationships. The economy is a social institution that determines how a society produces, distributes, and consumes goods and services. Capitalism is an economic system where wealth is in private hands and is invested and reinvested to produce profits. Ideally, capitalism has four essential characteristics. Capitalism is characterized by private ownership of property, competition, profit, and investment. However, capitalism is often characterized by impediments to the free market. A monopoly is a situation where one person or company controls a particular market or industry. With no competition, a corporation can set any price it wants and does so. An oligopoly is a market dominated by a few large suppliers. For example, six U.S. companies—including CBS, Time Warner, and the Walt Disney Corporation—now own 90 percent of the U.S. media market. Socialism is an economic and political system based on the principle of the public ownership of the production of goods and services. Socialism is characterized by collective ownership of property, cooperation, no profit motives, and collective goals. There are few socialist systems with China, Cuba, and the Soviet Union as primary examples.Most economies are mixed economies. European countries are a combination of capitalism and socialism.Socialist programs for healthcare, education and other services co-exist with profit market-based economic sectors. Communism is a political and economic system where all members of a society are equal. For Marx, exploited workers would eventually revolt and change the system. Today, China is becoming market-based with a government still teaching communist principles. Globalization is the growth and spread of investment, trade, production, communication, and new technology. Globalization has led to changes in political systems, culture, language, migration, the environment, and many other aspects of life. Critics contend that globalization exploits poor workers, spreads pollution, and destroys indigenous cultures, natural habitats, and animal species. A corporation isa social entity that has legal rights, privileges, and liabilities apart from those of its members. Corporations make up only 20 percent of all U.S. businesses, but account for 85 percent of all annual business income, and a mere 0.5 percent holds 90 percent of all corporate income. The profits of corporations are larger than many of the world’s largest nations.A conglomerate is a giant corporation that owns a collection of companies in different industries. In an interlocking directorate, the same people serve on the boards of directors of several companies or corporations. A transnational corporation (sometimes called a multinational corporation or an international corporation) is a large business that is based in one country but operates across international boundaries. The most powerful corporations are transnational conglomerates, companies that own a collection of different industries in a number of countries. Economic insecurity is a growing concern for Americans. Declining standards of living during the Bush administration has meant declining confidence in the economy. Debt has become a main concern for many. Deindustrialization is the process of social and economic change due to the reduction of industrialactivity, especially manufacturing. Between 2000 and 2006, 20 percent of U.S. manufacturing jobs disappeared. Globalization has led to offshoring or the movement of operations overseas and to offshore countries for tax holidays. 1Labor unions are organizations representing workers in collective bargaining. Unions have been instrumental in gaining benefits, improving working conditions, and other benefits. Times have changed. About 38 percent of government employees are unionized, but the rates of other workers have been decreasing steadily—from a high of 27 percent in 1953 to 12 percent in 2007. Unions have declined due to the rise of the service industry, antiunion tactics, and the decline of union power. Work has changed due to globalization and deindustrialization. 25 percent of workers (30 million people) are employed in jobs that pay poverty level wages. Minimum wage is only 33 percent of the average hourwage in the U.S., down from 50 percent in 1960. Downsizing, contingent workers, and part-time workers are a response to global competition. Contingent workers make up 4 percent of the population. Self-employed workers make up seven percent of the workforce. That is, they work for themselves. Others, including over eight percent of Americans, are underemployed which are people who working in jobs they are overqualified for. Many Americans are not satisfied with their jobs. The least satisfying jobs are usually low-skill, manual and service occupations, especially involving customer service and food/beverage preparation and serving. Job satisfaction tends to be highest in high social prestige occupations. Satisfaction is also related to appreciation and respect. Americans receive little vacation (no legally backed vacation time) and ultimately live to work. Americans are stressed at work on average. Jobstress costs American employers $300 billion.As a group, however, women have lower earnings than men in both the highest and lowest paying occupations, and the wage gaps are greater in the high-income jobs. Women are in fields associated with lower earnings, and experience reduced salaries due to child birth and care. Minorities also experience wage gaps with dominant groups. Functionalists see work as important for society’s survival. Work defines roles. Work provides social networks and social meaning. It can provide a sense of accomplishment, usefulness, and feeling valued; having a sense of stability, order, a daily rhythm, and developing interesting social contacts. Critics of functionalism point out that work can leave little room for creativity and be repetitive and routine. They also minimize corporate control of workers, including the lack of vacation and paid sick days. Conflict theorists see work as exploitative, and with globalization there is a growing sense of job insecurity. With the power of transnationals and technology, workers can be stifled
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