Overview
Modern economy originates with the information revolution and post-industrial economy
- a productive system based on service work and information technology
- began in 1950s
Character of work changed: From tangible products to ideas From mechanical skills to literacy skills From factories to almost anywhere
Economic Systems
Capitalism Private ownership of property Pursuit of personal profit Competition and consumer choice
Welfare capitalism combines a mostly market-based economy with extensive social welfare programs
Economic Systems (cont.)
Socialism1. Collective ownership of property2. Pursuit of collective goals3. Government control of economy
Communism: a hypothetical economic and political system in which members are socially equal
Capitalism vs. Socialism
Economic productivity: capitalism out produces socialism 2.7:1.
Economic equality: socialist economies create less income disparity but offer a lower overall standard of living.
Personal freedom: capitalism has freedom to act and socialism has freedom from want.
The Global Economy
The global economy expands economic activity that crosses national borders
Consequences: Global division of labour Products pass through several nations National governments have less control Small number of businesses control a vast
share of the market Concerns about the rights and opportunities
of workers are raised
Other consequences
The world's countries are becoming specialized.
Governments can no longer fully control the economic activity that takes place within their borders.
A small number of businesses control a vast share of the world's economic activities.
New Technology and the Workplace
How computers change the workplace: “Deskilling” of labour: Machines make some
some workers and managers obsolete Making work more abstract: Understanding
rather than doing is key Limiting workspace interaction Enhance employer’s control of workers Allow relocation of work: call centres
Economic Sectors
Primary: part that draws raw materials from the natural environment
Secondary: part that transforms raw materials into manufactured goods
Tertiary: part that generates services “Social reproduction sector”: unpaid
labour
Dual Labour Market
Primary labour market: occupations that provide extensive benefits to workers, e.g., white collar professions and upper management
Secondary labour market: jobs that provide minimal benefits to workers, e.g., low-skill service and blue-collar work
“Reserve army of labour”: those last hired in expansion and first fired with contraction
Labour Force Participation in the Canadian Post-Industrial Economy
In 2008, 18.2 million people in the labour force but by Feb. 2009, down to 16.9%
73% of men and 63% of women aged 15+ are in the labour force
Approximately 4% are in agricultural work Approximately 75% of the labour force is in
the service sector, but much service work pays much less than former factory jobs
Types of Employment
Professions: require extensive education and training – “white collar work” Paraprofessionals: have skills but lack theoretical
knowledge Unionized work: 1/3 of labour force
Some is “blue collar” work but highest level is in public administration (i.e. teachers)
Self- and Underemployment
Self-employment: earning a living without working for a large organization.
Includes professionals, farmers, trades people, and home businesses
Approximately 15% of labour forceUnderemployment uses less than one’s full
talents or abilities 50% of university grads are in jobs that do
not require these credentials. But, level of education is a predictor of
employment
Underground Economy
Economic activity involving income or the exchange of goods and services that is not reported to the government as required by law, e.g., baby-sitting, garage sales, and illegal activity
15-20 percent of economic activity Statistics Canada suggests 3.5 percent of
GDP Increased with imposition of GST
Bureaucratization
Predicted and described by Max Weber Based on rational-legal authority structure Ideal bureaucracy has Christmas tree shape Downward chain of command and upward
information flow Tall (hierarchical) vs. flat (more democratic
and productive) bureaucratic structures
Structural Functionalist Perspective on Work and Unemployment
One of most basic social institutions Provides social interaction, social solidarity
and cohesion in society Stratification and hierarchy in workforce both
natural and normal Unemployment is a dysfunction
Conflict and Feminist Perspective
Source of class conflict Bourgeoisie want more labour for less money
and proletariat want more pay for less work An inherent contradiction in capitalism
system Workforce is patriarchal: women make less Problem of the “reserve army of labour”
Unemployment keeps wages low Women are exploited for their unpaid labour
Symbolic Interactionist and Social Constructionist Views
Work is a major source of identity Also source of status and recognition Social Constructionist: The workforce, work
relations, and how people think about work constantly evolving
Social Problems Linked to Work and Unemployment
Gender discrimination Racial and ethnic discrimination Inequality Work-family problems Alienation
Unemployment
Discriminatory unemployment Due to discrimination because of ethnicity or
gender Structural unemployment
Due to socio-economic factors
Unemployment (cont.)
Unemployed increases with “downsizing” esp. during a recession
Rarely below 5% Official statistics understate it (only a % of those still
“actively seeking work”) Does not include “discouraged workers” Does not count part-time work Some part-time work is involuntary Higher for visible minorities and Native men and
women Higher for younger men and women
Unemployment Rates In Canada, official unemployment rate on
Mar. 13 was 7.7% U.S. was 8.1% TD predicts will be 10% by end of the year “There is no doubt that 2009 will go down in
history as one of the most difficult economic years for Canadians” (Beata Caranci, TD's director of economic forecasting)
Globally, a new forecast by the U.N. predicts that more than 198 million people will be unemployed in 2009
Health Consequences of Unemployment
Mortality Substance Abuse Depression and Anxiety Increased smoking rate and higher obesity Increased risk of violence (esp. domestic) Other effects
Spousal effects Effects on children
Solutions?
Tepperman suggests more job training and education programs at the societal level and therapy (for discouraged workers) and networking at individual level.
However, when unemployment is structural and global, then structural changes are needed
For instance, U.N's Food and Agriculture Organization (FAO) suggests “ten million [green] jobs could be created by investing in restoring degraded forests, planting new trees, building forest trails and recreation areas” (reuters.com, March 10 2009)
Or….
An example of a revolution promoting democratic structural change
The take (2004) Avi Lewis and Naomi Klein Produced by Barna-Alper productions and Klein
Lewis Productions with the NFB and CBC A video on the effects of economic collapse and
globalization on work (and unemployment) in Argentina in 2001
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