The Hajvery University

Department of Allied Health and Sciences

Name: Nabiha
Roll no.:324-T-552
Subject: Sociology
Incharge: Dr. Anum Afzal
Semester 2nd
Batch X
Department: DPT
 The Economy And Work

The Economy: Historical Overview

Summarize historical changes to the economy

In technologically simple societies, economic activity is Simply part of family life.The

agricultural revolution (5,000 years ago) made the

Economy a distinct social institution based on

• Agricultural technology
• Specialized work
• Permanent settlements
• Trade
The Industrial Revolution (beginning around 1750) Expanded the economy based on
• New sources of energy
• Centralization of work in factories
• Specialization and mass production
• Wage labor

The postindustrial economy, propelled by the Information Revolution, which began around
1950, is based on
 • A shift from industrial work to service work
• Computer technology

The primary sector of the economy

• Draws raw materials from the natural environment

• Is of greatest importance (26% of the economy) in

Low-income nations

Examples: agriculture, fishing, mining The secondary sector of the economy

• Transforms raw materials into manufactured goods

• Is a significant share (24%–35%) of the economy in Low-, middle-, and high-income
nations

Examples: automobile and clothing manufacturing

The tertiary sector of the economy

• Produces services rather than goods

• Is the largest sector (50%–74%) in low-, middle-, and High-income countries

Examples: secretarial work, sales, teaching

Economy the social institution that organizes a society’s production, distribution, and
consumption of goods and services

Postindustrial economy: a productive system based on service Work and high technology

Primary sector: the part of the economy that draws raw materials From the natural
environment

Secondary sector :the part of the economy that transforms raw Materials into manufactured
goods

tertiary sector: the part of the economy that involves services Rather than goods
Global economy :economic activity that crosses national borders
Economic Systems: Paths to Justice

Assess the operation of capitalist and socialist Economies Capitalism is based on private
ownership of property And the pursuit of profit in a competitive marketplace.

Capitalism results in

• Greater productivity
• Higher overall standard of living
• Greater income inequality
• Freedom to act according to self-interest

Example: The United States has a mostly capitalist economy.

Socialism is grounded in collective ownership of productive property through government
control of the economy.

Socialism results in

• Less productivity
• Lower overall standard of living
• Less income inequality
• Freedom from basic want

Examples: The People’s Republic of China and Venezuela Have mostly socialist economies.
Under welfare capitalism,
• Government may own some large industries such as Transportation and the mass media
• Most industry is privately owned but highly regulated By government
• High taxation of the rich helps pay for extensive government services for all

Examples: Sweden and Italy have welfare capitalist Economies.

Under state capitalism, government works in partnership With large companies by

• Supplying financial assistance

• Controlling foreign imports

Examples: Japan and Singapore have state capitalist economies.

Capitalism an economic system in which natural resources and The means of producing goods
and services are privately owned

Socialism an economic system in which natural resources and the Means of producing goods
and services are collectively owned

communism a hypothetical economic and political system in Which all members of a society
are socially equal

Welfare capitalism an economic and political system that Combines a mostly market-based
economy with extensive social Welfare programs

State capitalism an economic and political system in which Companies are privately owned
but cooperate closely with the Government

Work in the Postindustrial U.S. Economy

Analyze patterns of employment and unemployment in the United States. (pages 412–19)

• Agricultural work represents only 1.5% of jobs.

• Blue-collar, industrial work has declined to 18% of jobs.
• White-collar, service work has increased to 81% of jobs
 • Jobs in the primary labor market involve interesting work That provides high income,
benefits, and job security.
• Jobs in the secondary labor market have lower pay, Less job security, and fewer
benefits and provide less Personal satisfaction.
• 6.8% of U.S. workers are self-employed.
• Many professionals fall into this category, but most selfemployed people have blue-
collar jobs.
• Unemployment has many causes, including the operation of the economy itself.
• In 2014, 6.2% of the country’s labor force was Unemployed.
• At highest risk for unemployment are young people And African Americans.

Information technology is changing the workplace and How people work. Computers are

• Deskilling labor
• Making work more abstract
• Limiting interaction among workers
• Increasing employers’ control over workers
• Allowing companies to relocate work

Corporations

Discuss the importance of corporations to the U.S. Economy

Corporations form the core of the U.S. economy.

Incorporation

• Makes an organization a legal entity

• Shields owners’ wealth from lawsuits brought against The company
• Can result in a lower tax rate on the company’s profits
The largest corporations, which are conglomerates,Account for most corporate assets and
profits (examples: PepsiCo, General Motors).

• Corporations are linked through interlocking directorates.

• Recognizing that corporate linkages and the domination of certain markets by large
corporations reduce Competition, federal laws forbid monopoly and price Fixing.

Many large corporations operate as multinationals, producing and distributing products nations
around the World.

• Modernization theorists claim that multinationals raise Living standards in poor

countries by offering them More jobs and advanced technology.
• Dependency theorists claim that multinationals make Global inequality worse by
pushing poor countries To produce goods for export and making them more Dependent
on rich nations.

Primary labor market jobs that provide extensive benefits to Workers

Secondary labor market jobs that provide minimal benefits to Workers

Labor unions organizations of workers that seek to improve Wages and working conditions
through various strategies, includeing negotiations and strikes profession a prestigious white-
collar occupation that requires Extensive formal education

Underground economy economic activity involving income not Reported to the government
as required by law

corporation an organization with a legal existence, including Rights and liabilities, separate
from that of its members

Conglomerate a giant corporation composed of many smaller Corporations

Monopoly the domination of a market by a single producer
Oligopoly the domination of a market by a few producers