Psychology SOC ASSIGNMENT 7

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Chapter7 Outline - Mooney-2 LECTURE OUTLINE I. THE GLOBAL CONTEXT: THE NEW GLOBAL ECONOMY A. Introduction 1. Innovations in communication and information technology have spawned the emergence of a global economy—an interconnected network of economic activity that transcends national borders and spans the world. a. The global financial crisis of 2007-2009, which originated in the U.S. and spread throughout the world, illustrates the globalization of the economic institution. b. The economic institution refers to the structure and means by which a society produces, distributes, and consumes goods and services. c. The global financial crisis resulted from predatory and subprime lending, that resulted in a dramatic increase in foreclosures, from which banks lost revenue. d. The U.S. financial crisis triggered a huge drop in world trade. e. The global economic crisis re-ignited debate between those who view U.S. capitalism as the cause of economic problems in the world, and those who hail capitalism as “the greatest engine of economic progress and prosperity known to mankind.” B. Capitalism and Socialism 1. Under capitalism, private individuals or groups invest capital (money, technology, machines) to produce goods and services to sell for a profit in a competitive market. a. Capitalism is characterized by economic motivation through profit, the determination of prices and wages primarily through supply and demand, and the absence of government intervention in the economy. b. Critics of capitalism argue that it creates too many social evils, including alienated workers, poor working conditions, near-poverty wages, unemployment, a polluted and depleted environment, and world conflict over resources. 2. Socialism is an economic system characterized by state ownership of the means of production and distribution of goods and services.

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a. Theoretically, goods and services are distributed based on the needs of citizens. b. Socialist economies emphasize collective well-being rather than individualistic pursuit of profit. 3. Under capitalism private individuals or groups invest capital (money, technology, machines) to produce goods and services to sell for a profit in a competitive market. a. Capitalism emphasizes individual freedom. b. Capitalism is characterized by economic motivation through profit, the determination of prices and wages primarily through supply and demand, and the absence of government intervention in the economy. c. Critics of capitalism argue that it creates too many social evils, including alienated workers, poor working conditions, near-poverty wages, unemployment, a polluted and depleted environment, and world conflict over resources. 4. In reality, there are no pure socialist or capitalistic economies; most countries, including the U.S., have mixed economies that incorporate elements of capitalism and socialism. C. The Globalization of Trade and Free Trade Agreements 1. The globalization of trade—the expansion of trade of raw materials, manufactured goods, and agricultural products across national and hemispheric borders—has also changed the nature of economic life. 2. The first set of global trade rules were adopted through the General Agreement on Tariffs and Trade (GATT) in 1947. a. In 1995, the World Trade Organization (WTO) replaced GATT to oversee trade. 3. In the 1980s and early 1990s, U.S. officials began negotiating regional free trade agreements that would open doors to U.S. goods in neighboring countries and reduce the massive U.S. trade deficit. a. Free trade agreements are pacts between two or more countries that make trade easier. 4. Free trade agreements also undermine the ability of national, state, and local governments to implement environmental and food or product safety policies. 5. Free trade agreements have also made it easier for U. S. companies to move jobs offshore, usually to countries with lower wages and few environmental, health or safety regulations. D. Transnational Corporations

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1. Free trade agreements have opened markets to monopolies (and higher prices) by facilitating development of large-scale transnational corporations. 2. Transnational corporations (multinational corporations) have a home base in one country and branches, or affiliates, in other countries. 3. Transnational corporations provide jobs for U.S. managers, secure profits for U.S. investors, and help the U.S. compete in the global economy; benefit from increased access to raw materials, cheap foreign labor, and avoidance of government regulations (e.g., labor laws, working conditions, environmental regulations, etc.) 4. Transnational companies can also avoid or reduce tax liabilities by moving their headquarters to a “tax haven.” 5. The savings that transnational corporations reap from cheap labor abroad are used to increase profits rather than lower prices of products. a. Transnational corporations contribute to the trade deficit (more goods are produced and exported from outside the U.S.); contribute to the budget deficit by not paying taxes yet pressuring government to protect their interests through military spending; contribute to U.S. unemployment; and are implicated in other social problems, such as poverty resulting from fewer jobs, urban decline resulting from factories moving away, and racial and ethnic tensions resulting from competition for jobs.

II. SOCIOLOGICAL THEORIES OF WORK AND THE ECONOMY A. Structural-Functionalist Perspective 1. The economic institution is one of the most important social institutions. a. It provides basic necessities, including food, clothing, and shelter; by providing basic survival needs it contributes to social stability 2. The economic institution may be dysfunctional when it fails to provide members with needed goods and services, when distribution is grossly unequal, and when production, distribution and consumption of goods and services depletes and pollutes the environment. 3. The structural-functionalist perspective is also concerned with how changes in one aspect of society affect other aspects. a. For example, when unemployment rises, college enrollment increases, crime increases, and tax revenues decrease, which hurts the government’s ability to pay for services (e.g.,

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education, police, etc.). B. Conflict Perspective 1. The ruling class controls the economic system for its own benefit and exploits and oppresses the working masses. 2. The conflict perspective is critical of ways government caters to the interests of big business at the expense of workers, consumers, and the public interest. a. This system of government that serves the interests of corporations—known as corporatocracy—involves ties between government and business. b. Corporate interests find their way into politics through lobbying and donations. c. The pervasive influence of corporate power in government exists not only in the United States but also throughout the world. C. Symbolic-Interactionist Perspective 1. The work role is a central part of a person’s identity. a. One of the first questions we usually ask new acquaintances is “What do you do?” The answer largely defines for us who that person is. b. For many, occupation represents a “master status”—the most significant status in a person’s social identity. 2. Symbolic interactionism emphasizes that attitudes and behavior are influenced by interaction with others. a. Employers and managers use interaction techniques that elicit attitudes and behaviors they want from their employees. b. Union organizers are concerned with using interpersonal interaction techniques that persuade workers to unionize. c. Parents teach children important lessons about work and unemployment.

III. PROBLEMS OF WORK AND UNEMPLOYMENT A. Unemployment 1. In 2012, an estimated 97 million people worldwide—6% of the labor force—were unemployed. 2. Measures of unemployment in the U.S. consider an individual unemployed if s/he is currently without employment, actively seeking employment, and available for employment.

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a. In 2000, the U.S. unemployment rate dipped to a 31-year low of 4%; it rose to 10% in 2009. 3. Causes of unemployment are varied and complex. a. A primary cause is lack of available jobs; in May 2009 there were nearly 6 unemployed U.S. workers for every available job. b. Another cause is job exportation, the relocation of jobs to other countries where products can be produced more cheaply. c. Outsourcing, which involves a business subcontracting with a third party to provide business services, saves companies money as they pay lower salaries and no benefits to those who provide outsourced services. d. Automation, or the replacement of human labor with machinery and equipment, also contributes to unemployment. e. Other causes of unemployment are increased global and domestic competition and companies downsizing or going out of business. 4. Effects of Unemployment on Individuals, Families, and Societies. a. Unemployment is linked to depression, low-self esteem, and increased mortality, along with other health risks. i. Losing a job due to business closure increases the risk of a new health problem by 85%; common problems are hypertension, heart disease and arthritis. b. Unemployment is a risk factor for homelessness, substance abuse and crime. c. Long-term unemployment can have lasting effects, such as increased debt, diminished retirement and savings accounts, and/or relocation from secure housing and communities to unfamiliar places to find a job. d. In families, unemployment is a risk factor for child and spousal abuse and marital instability. e. Plant closings and large-scale layoffs affect communities by lowering property values and depressing community living standards. B. Employment Concerns of Recent College Grads 1. Having a college degree is no guarantee of employment in a struggling economy. a. The unemployment rate for young recent college graduates was 8.8 % in 2013.

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2. Many college graduates are moving back in with their parents. a. 45% of college grads are living with parents b. Many graduates cannot find work in their field or that even requires a college degree. C. Slavery 1. Forced labor (slavery) is work performed under of punishment and is undertaken involuntarily. 2. Worldwide at least 27 million people are victims of forced labor. 3. Forms of slavery and forced labor a. The form of slavery most are familiar with is chattel slavery, in which slaves are considered property that can be bought and sold. b. The most common form of forced labor today is called bonded labor. i. Bonded laborers are usually illiterate landless rural poor who take out a loan simply to survive or to pay for a wedding, funeral, medicines, fertilizer, or other necessities. ii. Debtors must work for the creditor to pay back the loan, but often they are unable to repay it. c. Another common form of forced labor involves sex slavery. d. Migrant workers are particularly vulnerable because if they try to escape and report their abuse, they risk deportation. 4. Forced labor in the United States a. Each year, 14,000 to 17,000 people are trafficked into the United States and forced into slavery, mostly because of human trafficking for domestic work, migrant farm labor, or work in the sex industry. D. Sweatshop Labor 1. Millions of people worldwide work in sweatshops—work environments that are characterized by less-than-minimum-wage pay, excessively long hours of work (often without overtime pay), unsafe or inhumane working conditions, abusive treatment of workers by employers, and/or the lack of worker organizations aimed at negotiating better working conditions. a. Sweatshop labor conditions occur in a wide variety of industries, including garment production, manufacturing, mining, and agriculture.

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b. More than 97% of all clothing purchased in the United States is imported, often made under sweatshop conditions. 2. Sweatshop labor in the United States a. The Department of Labor estimates that more than half of the country’s 22,000 sewing shops violate minimum wage and overtime laws and that 75% violate safety and health laws. b. Immigrant farm workers, who process 85% of the fruits and vegetables grown in the United States, also work under sweatshop conditions. E. Child Labor 1. Child labor involves a child performing work that is hazardous, that interferes with a child’s education, or that harms a child’s health or physical, mental, social, or moral development. a. Child labor persists throughout the world even though virtually every country has laws that prohibit or limit the extent to which children can be employed. b. An estimated 215 million school-age child laborers exist throughout the world. 2. Child laborers work in factories, workshops, construction sites, mines, quarries, and fields, and on fishing boat. 3. Illegal and oppressive employment of children also occurs in the U.S. in restaurants, grocery stores, meat-packing plants, garment factories and agriculture. F. Health and Safety in the U.S. Workplace 1. In 2013, 4,585 U.S. workers—most of whom were men—died of fatal work-related injuries. 2. Incidence of job-related illness and injury is probably much higher than statistics show: longterm latent illnesses are difficult to relate to the workplace and are not recognized and reported; employees don’t report injuries for fear of losing their job or being deported; companies don’t always maintain accurate records to avoid scrutiny and fines for possible violations. G. Job Stress 1. 1/3 of Americans are dissatisfied with the amount of stress in their jobs. 2. Prolonged job stress, also known as job burnout, can cause or contribute to physical and mental health problems, such as high blood pressure, ulcers, headaches, anxiety, and depression. 3. U.S. is the only advanced nation with no minimum number of vacation days.

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H. Work/Life Conflict 1. 56% of female and 50% of male workers report some interference between work and nonwork responsibilities. 2. Employed parents with young children must find and manage child care arrangements, and negotiate time off to care for a sick child or attend school events. 3. Employees with elderly and/or ill parents worry about how they will provide care: 2 in 10 workers are caregivers for someone over 50. 4. Women tend to experience their jobs as interfering with family more than men; however the level of work-family conflict experienced by women has remained stable over the past 3 decades while men’s work-family conflict has increased, probably due to increased male involvement in childcare. I. Alienation 1. One form of job dissatisfaction is a feeling of alienation. a. Work in industrialized societies is characterized by a high degree of division of labor and specialization of work roles, creating repetitive and monotonous tasks that involve little or no creativity; workers are unable to express and utilize their full potential— intellectual, emotional, and physical. b. According to Marx, when workers are merely cogs in a machine, they become alienated, or estranged from their work, the product they create, other human beings, and themselves. c. Alienation usually has four components: powerlessness, meaninglessness, normlessness, and self-estrangement. 2. McDonaldization of the workplace a. Sociologist George Ritzer coined the term McDonaldization to refer to the process by which the principles of the fast food industry are being applied to more and more sectors of society, particularly the workplace. b. McDonaldization involves four principles: i. Efficiency. Tasks are completed in the most efficient way possible by following prescribed steps in a process overseen by managers. ii. Calculability. Quantitative aspects of products and services (such as portion size,

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cost, and the time it takes to serve the product) are emphasized over quality. iii. Predictability. Products and services are uniform and standardized. iv. Control through technology. Automation and mechanization are used in the workplace to replace human labor. J. Labor Unions and the Struggle for Workers’ Rights 1. Labor unions are worker advocacy organizations developed to protect workers and represent them at negotiations between management and labor. 2. Benefits and disadvantages of labor unions to workers a. Labor unions have played an important role in fighting for fair wages and benefits, healthy and safe work environments, and other forms of worker advocacy. b. A disadvantage of unions is that members must pay dues and other fees, and these dues have been rising in recent years. c. Another disadvantage for unionized workers is the loss of individuality; unionized workers are members of an overall bargaining unit in which the majority rules. 3. Declining union density a. The strength and membership of unions in the United States have declined over the last several decades. i. Union density—the percentage of workers who belong to unions—grew in the 1930s and peaked in the 1940s and 1950s, when 35% of U.S. workers were unionized. ii. In 2012 the percentage of American workers belonging to unions had fallen to under 11.3%. b. Reasons for the decline in union representation include loss of manufacturing jobs, which tend to have higher rates of unionization than other industries; globalization has led to layoffs and plant closings at many unionized work sites; corporations take active measures to keep workers from unionizing; and weak U.S. labor laws fail to support and protect unionization. 4. Corporate anti-union activities a. At least 23,000 workers each year are fired or discriminated against at their workplace because involvement in union-related activity. b. The following are anti-union strategies used by employers: fire pro-union workers;

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threaten to close a worksite when workers try to form a union; coerce workers into opposing unions with bribery or favoritism; hire high-priced unionbusting consultants to fight union organizing drives; force employees to attend one-on-one anti-union meetings with their supervisors. 5. Weak U.S. labor laws a. The 1935 National Labor Relations Act (NLRA), the primary federal labor law in the United States, guarantees the right to unionize, bargain collectively, and to strike, to private sector employees. i. In addition to excluding public sector workers, the law excludes agricultural and domestic workers, supervisors, railroad and airline employees, and independent contractors. ii. As a result, millions of workers do not have the right under U.S. law to negotiate their wages, hours, or employment terms. b. Changes in U.S. labor law over the years have eroded workers’ right to freedom of association. c. Although it is illegal to fire workers for engaging in union activities, there are few consequences for employers that do so. i. There is a backlog of thousands of cases of unfair labor practices by employers and workers often wait about 2 years from the filing of a charge until the National Labor Relations Board resolves a case, discouraging many workers from filing charges. 6. Antiunion Legislation a. In March 2011Wisconsin governor signed legislation weakening unions representing state and local government employees. i. prohibited collective bargaining ii. annual votes iii. increased workers contributions for pensions and health care 7. Labor union struggles around the world a. In 1949, the International Labor Office established the convention on the right to organize and collective bargaining i. About half of the world’s workplace lives in countries that have not ratifies this

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convention b. In many less-developed countries and in countries undergoing economic transition, workers and labor unions struggle to have a voice in matters of wages and working conditions. c. Guatemala is the most dangerous place in the world to be a trade unionist. d. Trade union rights are violated by both employers and governments.

IV. STRATEGIES FOR ACTION: RESPONSES TO PROBLEMS OF WORK AND UNEMPLOYMENT A. Strategies for Reducing Unemployment 1. Workforce development a. Efforts to prepare high school students for work include the establishment of technical and vocational high schools and high school programs and school-to-work programs. b. The 1998 Workforce Investment Act provides an array of programs and services designed to assist individuals prepare for and find employment. c. Services include assessment of skills and abilities, access to job vacancy listings, job search and placement assistance, career planning and counseling, resume preparation, and more. 2. Job creation and preservation a. Some strategies on job creation and preservation are: keep manufacturing jobs in the U.S., reduce taxes, limit government involvement, and government involvement thorough infrastructure projects. 3. The global jobs pact a. In 2009, the International Labour Organization adopted a Global Jobs Pact to guide national and international policies i. goal is to retain workers, create jobs, sustain businesses, and provide social ii. protections ii. stringent supervision and regulation of financial industry. b. Recommendations i. shift to a low-carbon, environmentally friendly economy ii. investments in public infrastructure

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iii. increases in social protection and minimum wage B. Worker Cooperatives: An Alternative to Capitalism 1. One alternative is the cooperative workplace model that uses democratic methods in its business organization. C. Efforts to End Slavery, Child Labor, and Sweatshop Labor 1. More than 50 years ago, the United Nations stated in Article 4 of its Universal Declaration of Human Rights that “no one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.” a. Yet slavery persists throughout the world. b. The international community has drafted treaties on slavery, but many countries have yet to ratify and implement the different treaties. 2. One strategy to fight slavery is punishment. a. In at least 25 countries, slave trafficking is actively prosecuted and treated as a serious crime. b. In the United States the Victims of Trafficking and Violence Protection Act, passed by Congress in 2000, protects slaves against deportation if they testify against their former owners. 3. Efforts to end child labor include international agreements and education. 4. The Fair Labor Association (FLA), established in 1996, is a coalition of companies, universities, and nongovernmental organizations that works to promote adherence to international labor standards and improve working conditions worldwide. a. The FLA continues to be criticized for having low standards in allowing below-poverty wages and excessive overtime and for requiring that only a small percentage of a manufacturer’s supplier factories be inspected each year. 5. Student Activism. a. United Students Against Sweatshops is a student activism group that is affiliated with The Worker Rights Consortium (WRC)— a non-profit organization working to ensure that factories that produce clothing and other goods bearing school logos respect basic rights of workers, such as the right to unionize, living wages, and overtime pay. 6. Legislation

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a. Perhaps the most effective strategy against sweatshop work conditions is legislation. D. Responses to Workplace Health and Safety Concerns 1. There have been federal legislative measures passed to strengthen worker health related policies a. Through OSHA the government develops, monitors, and enforces health and safety regulations in the workplace. b. Legislation to strengthen OSHA and worker safety is frequently introduced but often fails to pass. 2. Behavior-based safety programs a. A controversial health and safety strategy used by business management is behaviorbased safety programs. b. Instead of examining how work processes and conditions compromise health and safety on the job, behavior-based safety programs direct attention to workers as the problem. i. Behavior-based programs claim that most job injuries and illnesses are caused by workers’ carelessness and unsafe acts. c. Critics contend that behavior-based safety programs divert attention away from the employer’s failure to provide safe working conditions. i. Workers whose employers have implemented behavior-based safety programs describe an atmosphere of fear in the workplace, such that workers are reluctant to report injuries and illnesses for fear of being labeled an “unsafe worker.” E. Work-Life Policies and Programs 1. Federal and state Family and Medical Leave Initiatives a. In 1993, President Clinton signed into law the Family and Medical Leave Act (FMLA), which requires all companies with 50 or more employees to provide eligible workers with up to 12 weeks of job-protected, unpaid leave so they can care for a seriously ill child, spouse, or parent; stay home to care for their newborn, newly adopted, or newly placed child; or take time off when they are seriously ill. i. Nearly 41% of the workforce is not covered by the FMLA. ii. Some employers do not comply with FMLA. iii. Some eligible employees do not take advantage of FMLA due to lack of awareness.

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iv. Many eligible workers do not use FMLA benefits because they cannot afford to take unpaid leave and/or they fear losing their jobs. b. 2 states—California and New Jersey—offer paid leave programs that provide eligible workers a family leave benefit with a portion of their salary for up to 6 weeks. c. The Healthy Families Act proposes to establish a federally mandated paid sick day policy. 2. Employer-based work-family policies a. Some employers have “family-friendly” work policies and programs, including unpaid or paid family and medical leave, child-care assistance, assistance with elderly parent care, and flexible work options such as flextime, compressed workweek, and telework. i. Flextime is a work arrangement that allows employees to begin and end the workday at different times so long as 40 hours per week are maintained. ii. Compressed workweek is a work arrangement that allows employees to condense their work into fewer days. iii. Telecommuting involves the use of technology that allows employees to work partor full-time at home or at a satellite office. F. Efforts to Strengthen Labor 1. About 2/3’s of U. S. adults agree that labor unions are necessary to protect working people. 2. In an effort to strengthen their power, some labor unions have merged with one another. 3. Strengthening labor unions requires combating the threats and violence against workers who attempt to organize or who join unions. 4. Proposed legislation called the Employee Free Choice Act would allow workers to sign a card stating that they want to be represented by a union; if a majority sign such a card, the company would have to recognize the union and bargain over terms and conditions of employment.

V. UNDERSTANDING WORK AND UNEMPLOYMENT A. The Universal Declaration of Human Rights, passed in 1948, Declares that everyone has the right to work for equal pay, but workers around the globe are still fighting for these basic rights. 1. United States has moved away from producing goods to producing services in a more globalized economy.

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2. Advocates of capitalism typically advocates for less government intervention…unless its institutions need to be bailed out. 3. The profit motive makes for complex solutions to problems of work and unemployment.