C14 Henslin9e

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A Down-to-Earth Approach 9/eA Down-to-Earth Approach 9/e

Chapter 14:Chapter 14:

The EconomyThe Economy

Chapter 14: The EconomyCopyright © Allyn & Bacon 2008 2

Preindustrial Societies: Birth of Preindustrial Societies: Birth of

InequalityInequality Hunting and Gathering SocietiesHunting and Gathering Societies

Pastoral and Horticultural SocietiesPastoral and Horticultural Societies

Agricultural SocietiesAgricultural Societies

Increasing Social and Economic Increasing Social and Economic

InequalitiesInequalities

The Transformation of Economic Systems



Industrial Societies: Birth of the MachineIndustrial Societies: Birth of the Machine

Brought Previously Unseen SurplusesBrought Previously Unseen Surpluses

More Efficient Machines Led to More Efficient Machines Led to

Conspicuous ConsumptionConspicuous Consumption




Service SectorService Sector Vast Surplus of GoodsVast Surplus of Goods Extensive Trade Among NationsExtensive Trade Among Nations Wider Variety and Quantity of GoodsWider Variety and Quantity of Goods Information ExplosionInformation Explosion Global VillageGlobal Village



Postindustrial Societies: Birth Postindustrial Societies: Birth of Information Ageof Information Age


Bioeconomic Societies: Merger of Bioeconomic Societies: Merger of

Biology and EconomicsBiology and Economics

We May Be On the Verge of New Type We May Be On the Verge of New Type

of Societyof Society

Likely to Lead to Even Greater Likely to Lead to Even Greater

InequalitiesInequalities

Implications for Your LifeImplications for Your Life




Earliest Mediums of ExchangeEarliest Mediums of Exchange

Medium of Exchange in Medium of Exchange in



Industrial SocietiesIndustrial Societies Gold Standard and Paper MoneyGold Standard and Paper Money

Fiat MoneyFiat Money

Gross Domestic ProductGross Domestic Product

The Transformation of the Medium of Exchange



Earliest Mediums of ExchangeEarliest Mediums of Exchange




Industrial SocietiesIndustrial Societies


Postindustrial SocietiesPostindustrial Societies




CapitalismCapitalism Private Ownership of Means of ProductionPrivate Ownership of Means of Production

Market CompetitionMarket Competition

Pursuit of ProfitPursuit of Profit

Laissez-Faire CapitalismLaissez-Faire Capitalism

Welfare or State CapitalismWelfare or State Capitalism

World Economic SystemsWorld Economic Systems


SocialismSocialism

Public Ownership of Means of ProductionPublic Ownership of Means of Production

Central PlanningCentral Planning

Distribution of Goods Without Profit MotiveDistribution of Goods Without Profit Motive

Democratic SocialismDemocratic Socialism

World Economic SystemsWorld Economic Systems


Capitalists Capitalists

Market Prices Should Determine Market Prices Should Determine

Products and PricesProducts and Prices

Profit is GoodProfit is Good

Ideologies of Capitalism and Socialism



SocialistsSocialists

Profit is ImmoralProfit is Immoral

Item’s Value Based on the Item’s Value Based on the

Work that Went Into ItWork that Went Into It

Government Protects Government Protects

Workers from ExploitationWorkers from Exploitation




CapitalismCapitalism

Leads to Social InequalityLeads to Social Inequality

Tiny Top Layer Exploits Vast Tiny Top Layer Exploits Vast

Bottom LayerBottom Layer

Few Who Own the Means of Few Who Own the Means of

Production Reap Huge ProfitsProduction Reap Huge Profits

Criticisms of Capitalism and Socialism



SocialismSocialism

Does Not Respect Individual RightsDoes Not Respect Individual Rights

Others Control People’s LivesOthers Control People’s Lives

Give Everyone an Equal Chance to Give Everyone an Equal Chance to

be Poorbe Poor




Convergence TheoryConvergence Theory

Hybrid or Mixed EconomyHybrid or Mixed Economy

Changes in China and RussiaChanges in China and Russia

Changes in AmericaChanges in America

Convergence of Capitalism and Socialism

Convergence of Capitalism and Socialism


New Global Division of LaborNew Global Division of Labor

Mechanical SolidarityMechanical Solidarity

Organic SolidarityOrganic Solidarity

Now We Depend on Workers Around the GlobeNow We Depend on Workers Around the Globe

Functionalist View of the Globalization of Capitalism

Functionalist View of the Globalization of Capitalism


Corporate CapitalismCorporate Capitalism

Separation of Ownership Separation of Ownership

and Managementand Management

Stockholders’ RevoltStockholders’ Revolt

Ownership and Management of Corporations

Ownership and Management of Corporations


Three Major Trading BlocksThree Major Trading Blocks

North and South AmericaNorth and South America

EuropeEurope

AsiaAsia

Greater Productivity and Greater Productivity and

Standard of LivingStandard of Living

Functions on a Global Scale

Functions on a Global Scale


Loss of Jobs in Loss of Jobs in

Industrialized NationsIndustrialized Nations

Rust Belts in U.S.Rust Belts in U.S.

Challenges to Small TownsChallenges to Small Towns

Dysfunctions on a Global Scale

Dysfunctions on a Global Scale


Inner Circle of Corporate CapitalismInner Circle of Corporate Capitalism

Multinational CorporationsMultinational Corporations

OligopolyOligopoly

Interlocking DirectoratesInterlocking Directorates

Global InvestingGlobal Investing

Conflict View of Globalization of Capitalism

Conflict View of Globalization of Capitalism


Transition to Postindustrial SocietyTransition to Postindustrial Society

Work in U.S. SocietyWork in U.S. Society



Women and WorkWomen and Work



Stagnant and Shrinking PaychecksStagnant and Shrinking Paychecks



Women and WorkWomen and Work

Underground EconomyUnderground Economy


Patterns of Work and LeisurePatterns of Work and Leisure

Effects of IndustrializationEffects of Industrialization

Trends in LeisureTrends in Leisure



Patterns of Work and LeisurePatterns of Work and Leisure

Effects of IndustrializationEffects of Industrialization

Trends in LeisureTrends in Leisure

TeleworkingTeleworking



Global Trade: Inequalities and ConflictGlobal Trade: Inequalities and Conflict

New Technologies and DownsizingNew Technologies and Downsizing

Facing the FutureFacing the Future

A Down-to-Earth Approach 9/eA Down-to-Earth Approach 9/e

Chapter 14:Chapter 14:

The EconomyThe Economy

C14 Henslin9e

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