Chapter 4 Flashcards
Globalization
movement of people, goods, services, capital, and cultural across national boundaries ]
Globalization of the economy is not a neutral process, decisons are based on what will make more profit, serving more for the owners rather than the workers or communities.
Offshoring
When a company moves its production to another country, producing the same products in the same way but with a cheaper labor, lower taxes, and lower benefits to workers
Ex: Apple
Sunset industries
as the economy shited away from manufacturing to services and information/ knowledge some sectors of the economy faded in importance or even died.
Gentrification
the process of converting low income housing to condos or upscale apartments for middle and upper middle classes
Effect of Great Recession on middle class
To deal with shrinking economic resources, many
families alter their consumption and work patterns.
• For many families, though, downward mobility adds
tensions that make family life difficult.
• In the year following the Great Recession: 1) 1.5 million
people declared bankruptcy; 2) banks repossessed 1
million homes; 3) nearly 3 million homeowners received
foreclosure notices; 4) 25% of homeowners owed more
on their homes than they were worth; 5) 43 million
received food stamps; 6) more than 20 million were
unemployed or underemployed.
Effects of downward social mobility
the american dream of owning a home and latest car model was obtained thru average real wages in the 1950’s and 1960’s. The change in economy by globalization the the effect of shroinking the middle class as the gap between the “haves” and “have nots” increased
Recession of 2007 gave a downward economy where pay and status were downward
Some declared bankruptcy, forced to leave their homes, homeless, poorer, hungry
Result of outsourcing and automation
fewer jobs available
