ISS 215: Social Differentiation and InequalityLecture 5: Economic Institutions and InequalityIn-Class Notes (part 2)Globalization of economy- Interdependent nations- Ex. oil prices go down in Saudi Arabia, gas prices go down in America- Powerful nations go after weak nations to benefit themselves- Production (WWII)- Split in 12 Cold War- American block (Capitalism)- Western European nations- Soviet block (Socialism)- East European nations; India, Iraq, Egypt- 1980’s- Socialism broke down- Countries opened doors to capitalism- International trade- There’s no country that doesn’t buy/sell stuff to other countries- International finance- World Bank/IMF banks of nations; US put in billions of dollars to help reconstruct Europe; Germany & Japan- Now give out loans to poor countries to reconstruct- Negative Annual meetings are done in secrecy because people will protest- They say they are financial tools used by rich nations to manipulate poor countries- Doesn’t give money based on need- World Trade Organization/NAFTA governs international trade- North American Free Trade Agreement- Canada, US, MexicoSocioeconomic Consequences of Capitalism- Environment degradation- Replacement of nature with what you see today- Goes against nature- Economic insecurity- Can be hired/fired for anything- Social inequality- Ascribed inequality- Wealth can just be passed on- No more America dream- Rich give birth to rich, poor give birth to poorFlat tax on everybody; no social stratification; (Ex. sales tax)Progressive tax changes along with your
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