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95 Cards in this Set

  • Front
  • Back
World Economy
-the system of international economic relationships in which all countries participate
-complex international network of trade, production and finance
-nations are tied together through the world economy
Globalization
-the growth of a worldwide economic, political, and cultural system
-responsible for alarge range of problems to include domesctic unemployment and global pollution
-although it is not globalization itself but the way in which globalization is being undertaken
-increasing globalization is allowing corporations to circumvent domestic regulation
2 Major Facts about Globalization
1. been going on for centuries
2. gained momentum in the last 30 years and is unlikely to be reversed
World Economy
-the system of international economic relationships in which all countries participate
-complex international network of trade, production and finance
-nations are tied together through the world economy
Third world, lesser developed countries
-nonindustrial nations poor nations of the world
-agriculture and export of raw materials is generally how they sustain themselves
-80% of the world live in poor nations
-many less developed countries with industries are owned b y foreigners
Globalization
-the growth of a worldwide economic, political, and cultural system
-responsible for alarge range of problems to include domesctic unemployment and global pollution
-although it is not globalization itself but the way in which globalization is being undertaken
Communism
- an economic in which the government owns and controls all economic insititutions
-Inspired by Marx andLenin
-keep out capitalist influence
-planned economies with little competition
-1990's most communist governments were gone
-China and Vietnam have made radical shifts towards capitalism
-few isolated nations practice communism
2 Major Facts about Globalization
1. been going on for centuries
2. gained momentum in the last 30 years and is unlikely to be reversed
Capitalism
- Adam Smith Wealth of Nations
-hard to define but three enduring qualitites
1. private property
2. market controls production and distribution f valuable commodities
3. privately owned business compete in teh market for profit
Third world, lesser developed countries
-nonindustrial nations poor nations of the world
-agriculture and export of raw materials is generally how they sustain themselves
-80% of the world live in poor nations
-many less developed countries with industries are owned b y foreigners
Communism
- an economic in which the government owns and controls all economic insititutions
-Inspired by Marx andLenin
-keep out capitalist influence
-planned economies with little competition
-1990's most communist governments were gone
-China and Vietnam have made radical shifts towards capitalism
-few isolated nations practice communism
Adam Smith Weath of Nations
-Classic principles of capitalism
-individuals work harder for personal profit
-Private Greed (workings of free market)=> Public good
-market regulated only by supply and demand
-Compeition = price regulation
-"invisible hand"
potential conspiracy against people...?
-restrict compeition and fix prices
-size of modern corporations have the ability to artificially control the marketplace
Capitalism
- Adam Smith Wealth of Nations
-hard to define but three enduring qualitites
1. private property
2. market controls production and distribution f valuable commodities
3. privately owned business compete in teh market for profit
Two ways in which we do not have pure capitalism...
-corporations artificially control market
-Government regulations and restrictions
Adam Smith Weath of Nations
-Classic principles of capitalism
-individuals work harder for personal profit
-Private Greed (workings of free market)=> Public good
-market regulated only by supply and demand
-Compeition = price regulation
-"invisible hand"
Government Regulations and Restrictions
-enacted to benefit special interest, public and itself
potential conspiracy against people...?
-restrict compeition and fix prices
-size of modern corporations have the ability to artificially control the marketplace
Two ways in which we do not have pure capitalism...
-corporations artificially control market
-Government regulations and restrictions
Government Regulations and Restrictions
-enacted to benefit special interest, public and itself
World Economy
-the system of international economic relationships in which all countries participate
-complex international network of trade, production and finance
-nations are tied together through the world economy
Globalization
-the growth of a worldwide economic, political, and cultural system
-responsible for alarge range of problems to include domesctic unemployment and global pollution
-although it is not globalization itself but the way in which globalization is being undertaken
2 Major Facts about Globalization
1. been going on for centuries
2. gained momentum in the last 30 years and is unlikely to be reversed
Third world, lesser developed countries
-nonindustrial nations poor nations of the world
-agriculture and export of raw materials is generally how they sustain themselves
-80% of the world live in poor nations
-many less developed countries with industries are owned b y foreigners
Communism
- an economic in which the government owns and controls all economic insititutions
-Inspired by Marx andLenin
-keep out capitalist influence
-planned economies with little competition
-1990's most communist governments were gone
-China and Vietnam have made radical shifts towards capitalism
-few isolated nations practice communism
Capitalism
- Adam Smith Wealth of Nations
-hard to define but three enduring qualitites
1. private property
2. market controls production and distribution f valuable commodities
3. privately owned business compete in teh market for profit
Adam Smith Weath of Nations
-Classic principles of capitalism
-individuals work harder for personal profit
-Private Greed (workings of free market)=> Public good
-market regulated only by supply and demand
-Compeition = price regulation
-"invisible hand"
potential conspiracy against people...?
-restrict compeition and fix prices
-size of modern corporations have the ability to artificially control the marketplace
Two ways in which we do not have pure capitalism...
-corporations artificially control market
-Government regulations and restrictions
Government Regulations and Restrictions
-enacted to benefit special interest, public and itself
Corporate Capitalism
Countries:
1. United States
2. Canada
3. United Kingdom

Characteristic:
1. small sate (government influence)
2. little regulation
3. weak unions
4. low labor costs

Outcomes
1. Cheap Produciton Costs
2. High Inequlity
3. Low Benefits to workers
4. low unemployemt
5. High Poverty
6. low taxes
7. less job security

- weak working class with less power in government
Cooperative Capitalism
Countries:
1. European Nations

Characteristics:
1. Large Welfare state
2. state regulation of the economy
3. economic planning
4. strong unions

Outcomes:
1. High production costs
2. low inequality
3. high worker benefits
4. high unemployment
5. high poverty
6. high taxes

working class and elite have power sharing agreement in alliance with government
-organized economy to protect interest of both parties

-labor unions and labor laws restrict what corporations can do in the economy
State Capitalism
Countries:
1.Japan
2. Developing countries in the East and Southeast Asia

Characteristics:
1. Strong state intervention
2. extensive regulation and planning
3. weak unions

Outcomes:
1.Medium production costs
2.low ineaquality
3.Medium worker benefits
4. Medium job security
5. low unemployment
6. low poverty
7. low taxes

-state has more independent politaical power and conover the economy

-government ministries hove power to plan the economy without considering short term and narrow working class or coporate interst
-could lead in the wrong direction
Neoliberal system or Free Market Economy
- in which government stays relatively uninvolved
-almost no government ownership in industry
-little economic planning
-reflects United States
Anti Trust Laws
-laws designed to protect free competition in the marketplace
Monoploy
- the control of a market or an entire industry by a single firm
Oligopoly
- the control of a market place on an entire industry by a few large companies
Effectiveness of antitrust regulation...
these laws have never been effectively enforced and likely collusion still continues
Who Runs the Corporations
The biggest blocks of stock in major corporations today are owned either by a small group wealthy individuals or institutional stockholders such as banks, insurance companies, and pension and investment funds
- 1% of the wealthiest/powerful Americans control 50% of famly held stock in US corporations
-Average stockholder's voice is insignificant due to share
-Banks/financial institutions have major share in power because they control loans
Corporate Class
-small gorup of people that run U.S. economy
-High level corportate manegers are a distinct social class that promote tehir interest
CEO
Chief Executive Officer

-419 to 1 agaisnt average worker
Multinational Corporation
A corporation that has manfacturing, service, and sales operations in many countries around the world
-linking economies of the world will lerad to greater overall prosperity
-critics argue it will increase exploitation
Multinational Forces in Poor Countries
-multinational corporations have expanded into lesser developed countries in Latin America, Asia and Africa
-corporate powers have tremendous influence in poor countries and make decisions that effect a poor country's economy with little care of locals
-poor nations only recieve short term rewards and end upworse off
-however some economies like Thailand and China have greatly improved because of multinationalism
Outsourcing Jobs
-laborers of foreign countries are taking over domestic jobs
-primary reason why salaries have remained low during econmoic expansion
Corporate Class
-small gorup of people that run U.S. economy
-High level corportate manegers are a distinct social class that promote tehir interest
Fraud
-deceit or trickery used to gain some unfair economic advantage
-not always about money sometimes teh damage health or life of consumer
-large political contributions
-false claims
-stock manipulations
-ex. Enron moving out of Californaia
CEO
Chief Executive Officer

-419 to 1 agaisnt average worker
Price fixing
Collusion by several companies to cut competition and st uniformly high prices
Multinational Corporation
A corporation that has manfacturing, service, and sales operations in many countries around the world
-linking economies of the world will lerad to greater overall prosperity
-critics argue it will increase exploitation
Ways to eliminate competion
-larger businesss will take a loss to get rid of competiton and then raise the price when the comeption has been eliminated
-cut off raw materials
Multinational Forces in Poor Countries
-multinational corporations have expanded into lesser developed countries in Latin America, Asia and Africa
-corporate powers have tremendous influence in poor countries and make decisions that effect a poor country's economy with little care of locals
-poor nations only recieve short term rewards and end upworse off
-however some economies like Thailand and China have greatly improved because of multinationalism
Role of Government
1. Provide jobs to millions of Americans
2. regulate private sector
Outsourcing Jobs
-laborers of foreign countries are taking over domestic jobs
-primary reason why salaries have remained low during econmoic expansion
Public Complaints of Governement Regulation
-regulations and regulatory branches of the government serve special interest of business
-revolving door between government and business
-regulators are future chairmen
Fraud
-deceit or trickery used to gain some unfair economic advantage
-not always about money sometimes teh damage health or life of consumer
-large political contributions
-false claims
-stock manipulations
-ex. Enron moving out of Californaia
Price fixing
Collusion by several companies to cut competition and st uniformly high prices
Ways to eliminate competion
-larger businesss will take a loss to get rid of competiton and then raise the price when the comeption has been eliminated
-cut off raw materials
Role of Government
1. Provide jobs to millions of Americans
2. regulate private sector
Public Complaints of Governement Regulation
-regulations and regulatory branches of the government serve special interest of business
-revolving door between government and business
-regulators are future chairmen
Deregulation
-The termination of government economic regulations and controls
-businesses in the 1980's argued that regulation slowed down economy
-ultimately benefited large corporations and damaged the public
Budget Deficit
-the amount of money the government spends in excess of the amount it recieves in taxes and other revenues
-indirect means to stimulate economy
Inflation
-an increase of prices
-result of overstimulated economy
Unemployment
-inability to find a job when you want one
-understimulated economy
3 Major Trends in the Workforce
1. the agriculture industry has steadily declined over the years
2. Manfacturing is being outsourced and jobs in the production field are being replaced with low paying service jobs
3. Women have made a permanent place for themselves in the workforce
Underemployment
part time worker who is seeking full time employment
Discouraged Workers
workers who have given up looking for work and are not counted in unemployment figures
How Wal Mart is destroying the working class...
-shuting down small business with price cuts
-not offering many benefits; or overvaluing benefits
-poor working conditions
-seeting the trend in the market
-union busters
-
Alienation
-A feeling of estrangement from society and social groups. A feeling of the loss of control over one's activitie's, especially one's labor
How to fix worker alienation...
-workers recieve greater share of profits
-allowing workers to participate in managerial decisions
Blue Collar
-manual worker
-decline in manual workers leadig tothe decline of the union
White collar
non manual
Business Cycle
-The ups and downs that characterize all captialistic economies
-Booms and busts
Business Cycle UP
-profit increase
-wage increase
-productivity increase

-unemployment decrease
-poverty decrease
-inflation increase
Business Cycle DOWN
-real wages decrease
-unemployment increase
-poverty increase
Real Wages
the actual value of wages after a correction for inflation
Business Cycle of the 1990's
-unemployment and inflation both stayed low
-wages of average workes stagnanted
-middle worked to keep up with economy
-upper got richer
-lower/poorer classes got poorer
-Americans spent moe and saved less
Minor History of American Economy post WWII
-due to isolation from battlezones of WWII American industries were undamaged by the toll of war
-Became dominant world economic force
-1970 Europe and Japan begin regaining financial standing on world stage
-US organizatons begin to globalize abandoned domestic interst/concerns for profit motive
-high paying jobs begin to be outsourced by foregin worker competition
-wage down/ unemployment up/ corporate business up
Developing capitalist systems in Japan and Germany vs American capitalism
American = corporate capitalism = profit motive/ individualistic preception of business seeking highest profits for shareholders

Cooperative and State Capitalism that place more imortance on domestic concerns and public welfare

-Japans taken aback about the greed of US CEO's

-491 to 1
How did inequality intensify in economic recovery of 1980's?
-Coportaions becamoe more politically involved
-deregulation
-lower personal and corporate taxes
-politics against unions
-welfare down
Modern factors in have and have not American economy...
1. Drops in profits for corporation intiated a striving for more political involement

2. HIgh tech industries and revolutionary innovation... double benefit more efficiency out of smaller work force
3. Increased consumer spending
How do corporations view the gloalization?
-Have no concern over the damage inflicted on domestic working class
-see it as a way to increase business productivity and efficiency
Conservative Approach to Economy
-Decrease social welfare programs to limit free riders
-limit government regulation to allow a unretricted free market
- tax cuts for the well to d
-lowering minimum wage
-support for the corporation
-taxation and regulation strain corporatons and solutions for conomic problems should be individuistic and let sompanies go under if they are weak and allow strong companies to continue profit absorbtion unimpeded by regulation
My belief on public support for differing economic systems...
depending on your social class and syle of life you will naturally adovcate public policy utilizing a conservative or liberal approach. It's relaible to say that values of an individual determine their outlook on American social life, however the factors that need to be addressed but are often for hard to describe nonetheles change are the elements of one's precept of reality that distributes importance and meaning to the external world. Social problems should not be simpified as obssesion over the profit motive or the unequal distribution of scarce resources; the the human complex that needs control over a material world.
Critcisms of Conservative Approach
-decreases competition
-tax breaks for wealthy are not reinvested bolster teh public
-safety net of average americans are stripped
Individualistic Approach
-contrast with conservative approach
-seek to reunite the public, state and corporations in cooperation
-economic social planning
-damage to made by government can lead to negative side effects... ex communism and opression of its people
Economic Planning
-the active involvement of governent in directing the economy
-Japan and Germany involve multiple elements of economy to idenitfy weakness to improve econmoic enviroment
-
American Economic Reality
-it is evident by our spending that the average American does not consider the long term
- we need to lower debt and increase investment
-only way to get to money is to reduce consumer spending which = reducing standard of living
-reduce standard of living
-Relentless materialism of our consumer culture is more likely an overall source of suffering than satisfaction
-A better education of the complexities of our economic world is mandatory for the improvement in individual empowerment to reform the economy
What needs to change to have a more long term perspective...?
-reduce federal budget deficiet by encouraging savings
-increase tax burden on corporation
-reduce productive investment tax rate
-increase tax rate on speculative investment
-more money spent on education
- reconstruct the workplace
Lean Production
-attempt to manufacturing that attempt to use the smallest possible amount of labor
-smaller flexible workforce
Economic Democracy
-overlapping management
--increased worker involvement both in ownership, work conditions and management
- increased number of shareholders
Sustainable Soiety
A stable socety that does not exceed the carrying capacity of the enviroment

-Our modern economic enviroment is structured to reward individuals who seek short term profits and ignore long term harm to society
The Functionalist Perspective on Economic Problems
-rapid changes have thrown the traditional economic system out of balance
-favor specific limited cures for specific limited problems
The Conflict Perspective on Economic Problems
- beleive that ever since businesspeople and indusrialist seized power from landed nobility, the have enlarged their power and their affluence at teh expense of everyone else
-one group seizes power and seeks profit regaurless of the rest of society
-exploitation of workers by their employers
-decline in power of union = lack of governement support for the everyday man and women
-Outsourcing exploits domestic working class and poorer nations
The Feminist Perspective on Economic Problems
- women are second class workers and more effort needs to be shown in all of our institutions to empower women to equal an equal status of their male counter parts
The Interactionist Perspective on Economic Problems
-Psyhological aspects of the work enviroment lead to greater depression in workforce
-System support creativity but also increases insecurity, fear, and aggression
-downward mobile classes tendency to be hostile, withdrawn and have a low self esteem
-the fear that reducing competiveness will destroy initiative and creativity => more emphasis isplace on psychological treatment of disorders rather than social and economic conditions that produce them