Sociology 323

Economy & Society

Jim Stanford Part 2

The Story of Stuff

Discussion

What do you want to be when you grow up?

Which of the following statements do you favour?

a) I would rather work less hours at my job even if it means that I have to consume less.

b) I would rather work more hours at my job in order to be able to buy more things.

Which of the following statements do you favour?

a) I would rather work in something that I enjoy even if I am not compensated all that well.

b) I would work in a job I hate if they pay me a lot of money.

Economics for Everyone:Work, Tools & Profit

Types of work in a Capitalist Economy

• Employment (wage labour)• Top Management and Owners• Proprietors of Small Business and Farms• Unpaid Work

Economics for Everyone:Work, Tools & Profit

Labour and Value

• Labour Theory of Value = The prices of producible commodities reflect the total amount of labour required to produce them (indirect and direct labour)

• Marx criticized the simplified labour theory of value by taking into account profit.

Human labour is a necessary component for the production of all goods and services.

With highly productive work, surpluses can be created.

Economics for Everyone:Work, Tools & Profit

Tools

People use tools in order to increase productivity and perform functions that defy our natural abilities.

Tools are intermediary products that are used to produce final products.

Tools depreciate in value over time.

Tools are idle without labour power.

Economics for Everyone:Work, Tools & Profit

Capital

Physical Capital = Tools used in work.Capital Investment = Money

What kind of capital does Concordia have?

Concordia's Budget for 2013

Economics for Everyone:Work, Tools & Profit

Types of Companies

- Corporation- Government Owned- Public Agency- Sole Proprietorship- Publicly Traded Companies

All companies have two things in common:1 – Somebody (or group of people) own them, therefore they are

entitled to the profits. 2 – Owners ensure that the company is governed in accordance

with their wishes; mainly to increase profits for the owners.

Economics for Everyone:Work, Tools & Profit

Logic of Profit

Richest People in the worldOECD Report on Wealth Inequality

Who owns the tools needed to produce goods and services?Does owning the means of production entitle people to obtain all the surpluses made by the production process?

How do we address financial inequality?