9.1 Economic systems  (Page 11/33)

Conflict perspective

For a conflict perspective theorist, the economy is not a source of stability for society. Instead, the economy reflects and reproduces economic inequality, particularly in a capitalist marketplace. The conflict perspective is classically Marxist, with the bourgeoisie (ruling class) accumulating wealth and power by exploiting the proletariat (workers), and regulating those who cannot work (the aged, the infirm) into the great mass of unemployed (Marx and Engels 1848). From the symbolic (though probably made up) statement of Marie Antoinette, who purportedly said “Let them eat cake” when told that the peasants were starving, to the Occupy Wall Street movement, the sense of inequity is almost unchanged. Both the people fighting in the French Revolution and those blogging from Zuccotti Park believe the same thing: wealth is concentrated in the hands of those who do not deserve it. As of 2007, 20 percent of Americans owned 80 percent of U.S. wealth (Domhoff 2011). While the inequality might not be as extreme as in pre-revolutionary France, it is enough to make many believe that the United States is not the meritocracy it seems to be.

Symbolic interactionist perspective

Those working in the symbolic interaction perspective take a microanalytical view of society, focusing on the way reality is socially constructed through day-to-day interaction and how society is composed of people communicating based on a shared understanding of symbols.

One important symbolic interactionist concept related to work and the economy is career inheritance    . This concept means simply that children tend to enter the same or similar occupation as their parents, a correlation that has been demonstrated in research studies (Antony 1998). For example, the children of police officers learn the norms and values that will help them succeed in law enforcement, and since they have a model career path to follow, they may find law enforcement even more attractive. Related to career inheritance is career socialization, learning the norms and values of a particular job.

Finally, a symbolic interactionist might study what contributes to job satisfaction. Melving Kohn and his fellow researchers (1990) determined that workers were most likely to be happy when they believed they controlled some part of their work, when they felt they were part of the decision-making processes associated with their work, when they have freedom from surveillance, and when they felt integral to the outcome of their work. Sunyal, Sunyal, and Yasin (2011) found that a greater sense of vulnerability to stress, the more stress experienced by a worker, and a greater amount of perceived risk consistently predicted a lower worker job satisfaction.

Summary

Economy refers to the social institution through which a society’s resources (goods and services) are managed. The Agricultural Revolution led to development of the first economies that were based on trading goods. Mechanization of the manufacturing process led to the Industrial Revolution and gave rise to two major competing economic systems. Under capitalism, private owners invest their capital and that of others to produce goods and services they can sell in an open market. Prices and wages are set by supply and demand and competition. Under socialism, the means of production is commonly owned, and the economy is controlled centrally by government. Several countries’ economies exhibit a mix of both systems. Convergence theory seeks to explain the correlation between a country’s level of development and changes in its economic structure.