Capitalism (Ch. 4)

Question 1

why study capitalism?

Answer 1

• economic sphere determines social sphere - your relationship to means of production (worker vs. owner) determines status, identity, life - “having a job is good” = social construct - structure of capitalism is social -> production and consumption -> people don’t become rich individually - class consciousness: rich are rich because poor are poor (capitalism requires there to be poor people) - commodification of social life (ie. weddings, baby showers, etc.)

Question 2

appropriation

Answer 2

when people who own the private property take/appropriate the surplus their workers have created

Question 3

surplus -> ___ -> ___

Answer 3

-> profit -> power

Question 4

capitalism

Answer 4

• a socioeconomic formation - relationship between owners of means of production (capitalists) and those who fill labour power (workers)

Question 5

commodities

Answer 5

anything that can be sold in the marketplace, produced for sole purpose of being sold (ex. get c, sell it to buy more c…OR.. get money, buy c, sell it to get more money)

Question 6

use value:

Answer 6

actual use of a product or personal signficance

Question 7

exchange value

Answer 7

economic worth (dollar amount)

Question 8

goals of capitalism

Answer 8

1. maximize profit 2. maintain the capitalist system

Question 9

labour power

Answer 9

a commidity purchased by employers because it adds value to business

Question 10

wage

Answer 10

price of labour power

Question 11

labour theory of value

Answer 11

the price of a good is dependent on the labour required to produce it (goal for employer: pay less for labour power -> profit goes up)

Question 12

labour power -> ___ -> ___ -> ___ -> leftover = value/profit

Answer 12

-> produce commodity -> sold in market -> money used to pay expenses

Question 13

who is the key producer of wealth?

Answer 13

the worker

Question 14

appropriating class

Answer 14

owning class/capitalists

Question 15

producing class

Answer 15

working class

Question 16

bourgeoisie

Answer 16

owners of means of production

Question 17

petite bourgeoisie

Answer 17

small business owners, still own wage

Question 18

proletariat

Answer 18

producers, workers, must sell their labour power to survive

Question 19

causal relationship btwn rich and poor

Answer 19

rich are rich because poor are poor

Question 20

financialization

Answer 20

dominance in financial sectors (ie. stock market), not producing a good or service

Question 21

monopolization

Answer 21

few companies in sector (ie. mergers and acquisition -> concentration of capital)

Question 22

key to capital’s power is…

Answer 22

ability to control society’s culture and ingrain values of capitalism into that culture

Question 23

why do people work?

Answer 23

human societies all share systems/forms of work in exchange for survival (each requires a form of coercion to compel us to work)

Question 24

non-economic coercion

Answer 24

slavery, feudal systems of obligation, serfs

Question 25

economic

Answer 25

wage dependency and scarcity

Question 26

alienation

Answer 26

workers in capitalist mass-producing industries are seperated from fruits of their labour

Question 27

invisible class structure

Answer 27

• hidden power imbalance between owners and workers - workers believe they are free citizens who work because they want to (ie. voluntary compliance, not coercion) - percieve inequality as nature and necessary

Question 28

imperialism

Answer 28

invasion and occupation of resource rich nations (Africa) by core nations (Europe)

Question 29

labour power enforced by

Answer 29

• religion (ie. “protestant work ethic” -> people want to work hard) - law (laws are social norms written down) - race (social construction -> races change) - gender (specific jobs for each gender -> nanny, teacher = women’s work -> justifies paying women less -> keeps labour costs down)

Question 30

contradiction in capitalism

Answer 30

• inequality/equality - stability/instability - excess of goods - labour excess (profit amassed through surplus -> free labour) - money excess (glut of capital, short term investments -> market instability)

Question 31

anarchy of production

Answer 31

crisis of overproduction -> creates consumerism

Question 32

capitalism seeks to control 3 spheres of society

Answer 32

1. economic 2. political 3. idealogical/cultural

Question 33

ideology

Answer 33

a coherent set of ideas

Question 34

Canadian values -> norms

Answer 34

value: independence, hard work, education, family norm: buying a house, getting a job, going to school, getting married and having kids

Question 35

free enterprise

Answer 35

no single buyer/seller can affect the price of a commodity by withdrawing their purchasing power/product from the marketplace

Question 36

imperalism

Answer 36

advanced stage of capitalism -> large monopolies came to control economy