Economics Chapter 14 Henslin’s Sociology: A Down to Earth Approach Some background: As societies evolved from Hunting and Gathering Groups who did not produce more than.

Chapter 14
Henslin’s Sociology: A Down to Earth
Some background:
As societies evolved from Hunting and
Gathering Groups who did not produce
more than was needed, to organized
Pastoral Societies where surplus foods
and goods were able to be produced, a
division of labor and social inequity
began to develop, steadily increasing in
the Agricultural Era and Post-Industrial
Organic Solidarity- The term used for the
interdependence that develops between
people due to the division of labor; people
needing others to fulfill their jobs.
Mechanical Solidarity- The unity that people feel
as a result of performing the same or similar
tasks, a shared consci4ncesness.
Money as currency…
Evolution of money.
Surplus lead to barter and trade…eventually
leading to the use of precious metals (gold
and silver) in the form of coins being used in
exchange for goods and services.
Gold standard (till 1937 in US).
Fiat money- not backed by gold held by government.
Deposit receipts.
Credit cards.
Debit cards.
Since Post Industrial Age…
Increased trade globally
resulted in the
development of a “global
Forms of Economies:
Not profit Motivated
For Profit
Central Committee
plans and directs
Owners determine
plans and direction
Public ownership of Individual Ownership
the means of
of the means of
A global division of labor is coming:
Corporations – Separating owners from the
management team within businesses, with
bonuses and stock options as the incentives
for high quality performance by
They strive to form monopolies, but more
commonly form oligopolies to control the
marketplace and limit competition.
Does the US have a true
capitalistic economy?
True capitalism, or laissez-faire capitalism, is
where supply and demand control the
economic direction of the economy without
This is not the form of capitalism that exists in
the US today.
The US has a ‘welfare’ or ‘state capitalism’ is
where our government controls the free
market with market restraints (rules, laws and
regulations ).
Gender and the Marketplace:
There as been a major influx of woman into the
work force globally.
Today 1 out of 2 workers are woman.
The increase of female workers has been so
gradual, but has has such profound social
and economic effects, that it has been termed
the “Quiet Revolution”.
Underground Economy:
 It
is extremely lucrative to perform
untaxed economic activities.
 The sale of drugs, prostitution and other
legal and illegal activities are
considered part of an underground
The Convergence Theory
It is believed that the world is moving
towards a blending of Capitalism and
Socialism, towards a converged
economy where qualities of both
economic philosophies are combined to
form a more workable market place.
With the advancements of
telecommunication and the desire by
corporations to reduce overhead and
expenses, more and more people are
working from their homes via the
Leisure Time:
While US workers are the most
productive in the world, they do not
have the same leisure time benefits of
many other industrialized countries,
such as Germany.

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