SOA 106 1st Edition Lecture 19Outline of Last Lecture I. The University as a Sorting MachineII. Attending a Prestigious School MattersIII. The Myth of MeritOutline of Current Lecture II. Economy as a Social InstitutionIII. Sociology of CapitalismCurrent LectureEconomy as a Social Institution- Economy—a social institution that governs the production, distribution, and consumption of goods, services, and raw materialso Not natural- Types of economic systems—feudalism, slavery, subsistence economies, simple market economies, state bureaucratic socialism, market socialism- Capitalism – economic system in which property and goods are owned privately and prices, production, and distribution of goods is determined by competition in free market.- Key Principles:o Private ownership of resources and the means of production Things of value can be owned Companies own their resourceso Goods and services are produced for markets People want cars so we produce them, they are not a need Determined by supply and demando Labor is bought and sold via markets- Socialism – an economic system in which most or all of the needs of the population are provided through non-market methods of distribution.- Key aspects:o Productive property and resources are collectively owned Resources are socially owned, determined based on social needThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.o Distribution is governed by non-market forceso Belief that all members of society should share in the prosperity of economic distribution- Mixed economies—economies that combine features of capatilist and socialist systems, including both the public and private ownership of property and limits on free market competition.o Most economies are mixedo EX: Sweden. Netherlands, Chinao We are a mixed economyo EX: social security, national parksSociology of Capitalism- Capitalism a constructed realityo Product of social interactiono Economic rules are understood as “the way it is”o We do not challenge the ruleso Myths are reinforced as reality (Ex. “free”markets) Subsides give companies a greater advantage Government is not supposed to be involved in the free market If it was a free market there would be no prohibitions (all drugs would be legal to sell, organs could be sold) There are rules established for modes of exchange, which takes away the free market- Reifies “the economy” as something we need to satisfy rather than the other way aroundo The economy is there to serve peopleo But we are convinced we need to serve the economy- Market values trump human values- Leads to viewing wealth is evidence of success and high character while poverty is a sign of failure (tautological)- Implications of capitalist reality—market values trump human values (e.g. mining accidents, health care, coke
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