ECONOMIC SYSTEM Flashcards
what is economic inequality
The unequal distribution of economic resources (wealth and income)
what is income
The money that an individual receives in exchange for services or investments, such as a paycheck, social security check, or stock sal
what is wealth
An individual’s assets (houses; car; savings account) minus their debts
what is income inequality
a result of those with higher levels of education and special, in-demand skills earning more than those with less education and fewer valuable skills
what is wealth inequality
a result of differences in the distribution and accumulation of wealth - key indicator of economic inequality
- Individuals and families have assets that they inherit or that their parents can share with them which leads to Wealth Inequality
- wealth gap in the United States is even more significant than the income gap
what is meritocracy
A society in which those with the most talent rise to the top and are adequately awarded for their contributions
- Those with the ability to become key contributors are guided and given training
- Positions that are deemed most important get greatest rewards in terms of income and prestige - Income reflects the contribution to the society
how does Karl Marx conceptualize and measure economic class
Society is UNEQUAL and economic classes are a result of the relationship to the means of production (bourgeoisie + proletariat) - MATERIALIST CONCEPTION of society
who are the owners and workers of the means of production
THE BOURGEOISIE = owners
THE PROLETARIAT = workers
explain the link of false consciousness to Marx’s concept of economic classes and the means of production
- Wealthy control the media - fool proletariat to accept economic inequality -facilitates the development of a false consciousness
- When members of a class embrace values that work against their own interests, they have developed a false consciousness
- Links back to MERITOCRACY
how does Weber conceptualize and measure economic class
Class position is dependent on more factors than economic class (expands on Marx’s theory) - standing in society was more than simply one’s economic resources
what 3 factors did Weber also suggest that determined an individual’s place in society
- class: Economic opportunities determined by the market (life chances)
- status: Status is determined by membership in certain groups
- party: The power that an individual’s political position asserts
what is social stratification
The way that valuable goods and intangibles
(prestige and status) are distributed in a society
what are structured inequalities
Advantages and disadvantages built into societies
what is social class
Distinctions among groups of people based on income, occupation, and education
what is a class-based system (US)
Members of a given social class share a common economic status and lifestyle - Class systems offer more mobility (in theory), and individuals can move up or down the economic ladder
