THERE ARE
NO RICH PEOPLE
IN THE WORLD
The Economy
as Social Institution
Defining Economy
• The social institution that governs the
management, production, and distribution of
human material resources (goods, services,
raw materials, and the things we need for
survival).
Types of Economic Systems:
Capitalism
• A way of organizing economic life based on:
– Private ownership of productive property
– Profit as incentive
– Competition between actors in “free markets”
– Prices are driven by supply and demand
– Relationship between employer and employee is
based on surplus value
Socialism
• An economic system in which the raw
materials and the means of producing and
distributing goods and services are collectively
owned
• Based on the belief that everyone should
share equally in the goods and services
produced by society
Mixed Economies
• Economies that combine features of capitalist
and socialist systems, including both the
public and private ownership of property and
limits on free-market competition.
"To learn who rules
over you, simply find
out who you aren't
allowed to criticize"
-- Voltaire (1694-1778)
In a relatively free society, whose
control is based on ideological
hegemony, we might say,
"To learn what rules over you,
simply find out what you are
highly discouraged (threatened
with severe social ostracism)
from criticizing."
We’re gonna deconstruct and
criticize CAPITALISM
just a little bit
We all already know the benefits
of capitalism, right?
Let’s list some!
Capitalism as a
Constructed Reality:
Ideology and the Culture of Capitalism
• “Naturalizes” a social construct
– Economic rules are understood as “the way it is”
– Myths are reinforced as “reality”
• E.g. “Free Markets”
– Facilitates social control (through consent)
– Wealth is evidence of success, poverty is a sign of
failure to achieve
Implications of “Naturalized” Capitalism:
• Market values trump human values
– E.g. Tobacco companies, vacant houses, etc.
• Produces quiescent workers
– Quiescent = “at rest,” someone who is docile, not agitated
• Public goods become private property
– E.g. Enclosure movement, privatization of water, healthcare, etc.
• Structural problems treated as personal issues
– E.g. Poverty, unemployment, etc.
• Alternative economic arrangements are not
even considered
– E.g. Healthcare reform debate
Dilemmas of Capitalism
• Clean air vs. national sovereignty
Kyoto Protocol
Dilemmas of Capitalism
• Clean air vs. national sovereignty
• Property rights vs. human rights
Dilemmas of Capitalism
• Clean air vs. national sovereignty
• Property rights vs. human rights
• Needs of market vs. needs of people
Nike factory in Vietnam
Dilemmas of Capitalism
•
•
•
•
Clean air vs. national sovereignty
Property rights vs. human rights
Needs of market vs. needs of people
Public health vs. private profit
Dilemmas of Capitalism
•
•
•
•
•
Clean air vs. national sovereignty
Property rights vs. human rights
Needs of market vs. needs of people
Public health vs. private profit
Intellectual property vs. art
Dilemmas of Capitalism
•
•
•
•
•
•
Clean air vs. national sovereignty
Property rights vs. human rights
Needs of market vs. needs of people
Public health vs. private profit
Intellectual property vs. art
Trees vs. Jobs
Inequality is an inevitable
consequence of capitalism.
But the level of inequality we are
willing to tolerate is up to us.
We are currently experiencing
nearly the highest rate of
inequality since 1929.
Inequality and Life Chances
• Working class and poor people are:
– Less likely to go to college
– More likely to get arrested, convicted, go to
prison, and receive the death penalty than upper
class people
– More likely to die prematurely
Our economy is worth, roughly,
$188 trillion.
Which is split between, roughly,
311 million people.
From 2009-2011,
100% of all new
income went to the
top 1%
The bottom 99% actually saw a loss in their income.
Forbes 400 Richest Americans
• Have a combined net worth of over $1.54
trillion
• Bill Gates = $66 billion
• All 400 are billionaires ($1.1—$66 bil.)
• About 30 % inherited their wealth
– (as of 2013)
Over $200 billion is inherited each
year, half of which comes from just 7
percent of estates.
Questions for us to consider:
Is a capitalist economy compatible
with a democratic society?
and
How should we structure our
economy if we wish to truly achieve
democracy, freedom, and equality?