Key terms Flashcards
The enfranchisement policy
The enfranchisement policy refers to a set of regulations initially outlined in early versions of the Indian Act in Canada, which aimed to assimilate Indigenous peoples into Euro-Canadian society by encouraging them to relinquish their Indian status. This policy was based on the belief that assimilating Indigenous individuals into mainst
Key Points of the Enfranchisement Policy:
Voluntary Surrender of Indian Status: Indigenous individuals had to voluntarily give up their legal recognition as “Indians” under the Indian Act to gain certain rights and privileges afforded to Canadian citizens.
Voting Rights: Those who enfranchised could gain the right to vote in Canadian elections, a right otherwise denied to them while retaining their Indian status.
Eligibility for Certain Professions: Indigenous individuals who gave up their status could pursue careers in the military, law, clergy, or medicine, or attain a university degree, which were otherwise restricted.
Assimilation Objective: The primary goal was to assimilate Indigenous people into the broader Euro-Canadian society, thereby removing the government’s obligation to provide the services and resources guaranteed to status Indians under the Indian Act.
Impact on Indigenous Identity and Rights: The policy undermined Indigenous identity and aimed to erode the cultural and social structures of Indigenous communities by encouraging individuals to separate themselves from their heritage and community.
Long-Term Consequences:
Loss of Cultural Identity: Enfranchised individuals often lost their connection to their cultural and community roots, leading to a significant impact on their sense of identity and belonging.
Social Disruption: The policy caused divisions within Indigenous communities and families, as individuals who enfranchised were no longer legally recognized as members of their communities.
Legal and Economic Disadvantages: While theoretically offering certain benefits, enfranchisement often resulted in Indigenous individuals facing continued discrimination and limited opportunities within mainstream society.
Policy Amendments: In 1985, Bill C-31 amended the Indian Act to eliminate enfranchisement, recognizing the policy’s detrimental effects on Indigenous peoples and allowing those who had lost their status to regain it.
The enfranchisement policy is a significant example of how governmental policies have historically aimed to assimilate Indigenous peoples, often leading to profound and lasting negative impacts on their communities.
occupational (vertical and horizontal) gender segregation-
Occupational gender segregation refers to the uneven distribution of men and women across different types of occupations or industries within the labor market. There are two main types of occupational gender segregation:
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Horizontal Occupational Gender Segregation:
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Horizontal segregation occurs when men and women are concentrated in different types of occupations or industries. Typically, certain fields become associated with one gender due to societal norms, expectations, and stereotypes. For example, nursing and teaching are often seen as female-dominated professions, while engineering and construction are traditionally male-dominated.
Horizontal segregation reflects the division of labor along gender lines, where specific occupations or industries are perceived as more suitable or appropriate for one gender over the other.
This form of segregation contributes to the perpetuation of gender stereotypes and can result in unequal opportunities, wages, and career advancement prospects for men and women. It limits individuals’ choices and reinforces gender norms within the labor market.
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Vertical Occupational Gender Segregation:
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Vertical segregation refers to the uneven distribution of men and women across different levels of hierarchy or positions within the same occupation or industry. Even within occupations where both men and women are present, there may be disparities in access to leadership roles, higher-paying positions, and decision-making authority.
Vertical segregation highlights the existence of barriers that hinder women’s upward mobility and career progression within their chosen fields. These barriers can include discriminatory hiring and promotion practices, lack of support or mentorship opportunities, and entrenched gender biases.
This form of segregation contributes to the gender wage gap and perpetuates inequalities in earnings and status between men and women in the workforce. It reflects broader societal norms and expectations regarding gender roles and leadership.
In summary, occupational gender segregation encompasses both horizontal and vertical dimensions, describing the unequal distribution of men and women across different occupations or positions within the labor market. These forms of segregation contribute to gender disparities in wages, opportunities, and career advancement.
Monopoly and oligopoly-
Monopoly:
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Definition: A monopoly exists when a single company or entity dominates the entire market for a particular product or service. In other words, there is only one seller controlling the supply of a good or service, giving it significant market power.
Characteristics:
Single seller: There is only one firm operating in the market.
Unique product: The monopolist typically sells a unique product or service with no close substitutes.
High barriers to entry: Barriers such as patents, control over essential resources, or significant economies of scale prevent new firms from entering the market.
Price maker: As the sole provider, the monopolist has the power to set prices without considering competition.
Examples: Local utility companies, patented drugs, and some government-granted monopolies like postal services are examples of monopolies.
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Oligopoly:
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Definition: An oligopoly occurs when a small number of firms dominate the market for a particular product or service. Unlike a monopoly, there are multiple sellers in an oligopolistic market, but they are few enough to exert significant influence over the market.
Characteristics:
Few large firms: The market is dominated by a small number of large firms, typically fewer than ten.
Interdependence: Actions taken by one firm, such as changes in price or output, can significantly impact the decisions of other firms in the industry.
Product differentiation: Firms may differentiate their products through branding, marketing, or slight variations, but they are often close substitutes.
Strategic behavior: Oligopolistic firms engage in strategic behavior, such as pricing strategies, advertising, and product development, to gain a competitive edge.
Examples: Automobile industry, airline industry, and telecommunications industry are examples of oligopolies where a few major companies control the majority of the market share.
In summary, while a monopoly involves a single seller dominating the market, an oligopoly features a small number of firms with significant market power. Both market structures limit competition and can have implications for consumer choice, pricing, and overall market dynamics.
tax avoidance versus tax evasion-
Tax Avoidance: Tax avoidance refers to the legal practice of arranging one’s financial affairs in a manner that minimizes tax liability while remaining within the boundaries of the law. It involves utilizing available legal means such as deductions, credits, exemptions, and loopholes to reduce the amount of tax owed. Tax avoidance is considered acceptable and is commonly practiced by individuals and businesses to optimize their tax burdens.
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Tax Evasion: Tax evasion, on the other hand, is the illegal act of deliberately misrepresenting or concealing financial information to evade paying taxes owed. It involves intentionally underreporting income, overstating expenses, hiding assets, or engaging in other fraudulent activities to avoid taxation. Tax evasion is a criminal offense and is punishable by law, often resulting in severe penalties such as fines, interest charges, and imprisonment.
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In summary, while tax avoidance involves utilizing legal methods to minimize tax liabilities within the confines of the law, tax evasion entails unlawful actions to evade paying taxes owed by deceitful means. It’s crucial for individuals and businesses to understand the distinction between the two and ensure compliance with tax laws and regulations to avoid legal repercussions.
Examples
Tax Avoidance:
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Utilizing Tax Deductions: An individual or business takes advantage of available tax deductions, such as those for charitable contributions or business expenses, to reduce their taxable income.
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Investing in Tax-Advantaged Accounts: Contributing to retirement accounts like IRAs or 401(k)s allows individuals to defer taxes on income until withdrawal, thus reducing current tax liabilities.
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Implementing Tax Planning Strategies: A multinational corporation structures its operations in various jurisdictions to benefit from lower tax rates or tax incentives legally provided by those jurisdictions, thereby reducing its overall tax burden.
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Tax Evasion:
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Underreporting Income: An individual fails to report cash payments received for services rendered, such as income from freelance work or rental properties, with the intent to evade taxes on that income.
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Falsifying Expense Claims: A business inflates its expenses on tax returns by claiming personal expenses as business-related, such as luxury vacations or personal meals, in order to reduce taxable income.
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Concealing Assets: An individual hides assets or funds in offshore accounts or shell companies with the intention of evading taxes on investment income or capital gains.
Glass-Steagall Act (Banking Act of 1933):
Introduced as part of the New Deal reforms during the presidency of Franklin Delano Roosevelt (FDR) in response to the Great Depression.
Officially known as the Banking Act of 1933, but commonly referred to as the Glass-Steagall Act.
Aimed to re-regulate the banking sector and address the risky practices that contributed to the 1929 stock market crash and subsequent economic downturn.
Implemented strict controls and separated traditional banking activities from speculative investment banking activities.
Prohibited commercial banks from engaging in investment banking activities, such as trading in stocks, bonds, and mortgages.
Established a clear separation between commercial banking (taking deposits and providing loans) and investment banking (underwriting securities and facilitating trading).
Intended to safeguard depositors’ savings by preventing banks from using them for high-risk speculative investments.
Aimed to stabilize the financial system, restore public confidence in banks, and prevent future financial crises.
Considered a key component of financial regulation aimed at preventing excessive risk-taking and ensuring the stability of the banking system.
Neoliberalism-
Neoliberalism is an economic and political ideology that advocates for limited government intervention in the economy and promotes free-market capitalism as the primary means of organizing society. It emerged in the mid-20th century as a response to Keynesian economics and the perceived failures of state interventionism. Key characteristics of neoliberalism include:
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Free Market Principles: Neoliberalism emphasizes the importance of free markets, deregulation, and privatization. It argues that allowing market forces to operate without interference leads to economic efficiency and optimal resource allocation.
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Limited Government: Neoliberalism advocates for a minimal role of the state in economic affairs. Governments should focus on maintaining law and order, protecting property rights, and enforcing contracts, while leaving most economic decisions to the private sector.
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Individualism: Neoliberalism places a strong emphasis on individual freedom, entrepreneurship, and personal responsibility. It views individuals as rational actors who make decisions in their self-interest, and it promotes policies that support individual initiative and competition.
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Monetary Policy: Neoliberalism favors monetary policy over fiscal policy as the primary tool for economic management. It advocates for independent central banks that prioritize price stability (low inflation) and pursue policies such as inflation targeting.
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Globalization: Neoliberalism supports free trade and globalization, advocating for the removal of barriers to international trade and investment. It believes that open markets promote economic growth, innovation, and prosperity.
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Austerity: Neoliberalism often promotes austerity measures, such as reducing government spending, cutting social welfare programs, and implementing fiscal discipline, to achieve budgetary balance and economic stability.
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Critique of Government Intervention: Neoliberalism criticizes government intervention in the economy, arguing that it distorts market signals, stifles innovation, and leads to inefficiency. It seeks to roll back regulations, reduce taxes, and minimize government involvement in economic decision-making.
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Overall, neoliberalism has had a significant influence on economic policies and governance structures around the world since the 1970s, shaping both domestic policies and international institutions such as the International Monetary Fund (IMF) and the World Bank. However, it has also faced criticism for exacerbating inequality, weakening social safety nets, and prioritizing the interests of corporations and the wealthy over those of the general population.
FIRE group of industries-
FIRE stands for Finance, Insurance, and Real Estate. These industries are often grouped together due to their interconnectedness and significant influence on the economy. Here’s a breakdown of each sector:
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Finance: This sector includes banking, investment firms, stock markets, and other financial institutions that facilitate the flow of capital in the economy. It encompasses activities such as lending, borrowing, investing, and managing assets.
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Insurance: The insurance industry provides financial protection against risks such as accidents, illness, property damage, and other unforeseen events. It involves selling insurance policies and collecting premiums to cover potential losses.
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Real Estate: The real estate sector involves buying, selling, leasing, and managing properties such as land, residential homes, commercial buildings, and rental units. It plays a crucial role in urban development, construction, and property investment.
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Characteristics of FIRE Group Industries: Based on the commentary provided, the following characteristics can be associated with the FIRE group industries:
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Concentration of Wealth: The wealthiest individuals in society are often associated with the FIRE industries, particularly in executive and managerial roles within finance and real estate sectors.
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Income Disparities: High-income earners within the FIRE industries contribute to widening income disparities in society, as evidenced by the significant income growth among the top 1% of Canadians.
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Geographic Distribution: There has been a geographic shift in the residences of the wealthy, with a notable concentration in regions with significant activity in the finance and real estate sectors, such as Alberta with its booming oil and gas industry.
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Policy Implications: Policies related to taxation, regulation, and social welfare have implications for the FIRE industries, as seen in discussions about tax rates for the wealthy and government initiatives aimed at addressing income inequality.
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Overall, the FIRE group industries play a significant role in shaping economic trends, income distribution, and policy debates in Canada, reflecting broader global patterns in finance, insurance, and real estate sectors.
public choice theory-
Public Choice Theory is a branch of economics that applies economic analysis to the study of political decision-making processes. It seeks to understand how individuals, acting in their self-interest, make decisions within the context of collective decision-making institutions, such as governments and public organizations.
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Rational Pursuit of Self-Interest: Public Choice Theory posits that individuals, including policymakers and voters, act rationally to maximize their own utility or self-interest. This perspective challenges the notion that political actors always act in the public interest or for the social good.
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Critique of Progressive Taxation: Within the context of taxation policy, Public Choice Theory may be used to analyze arguments both for and against progressive taxation. Critics of progressive taxation argue that it imposes unjust penalties on wealth accumulation and undermines individual incentives to work and invest. This perspective aligns with the broader framework of possessive individualism, which emphasizes individual rights and minimal government intervention.
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Historical Context: The reading highlights how tax policies have evolved over time, with periods of higher tax rates for the wealthy giving way to tax cuts in more recent decades. Public Choice Theory may be applied to analyze the political dynamics and interests that drive changes in tax policy, including the influence of special interest groups, political ideologies, and electoral incentives.
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Rejecting Homo Economicus: Public Choice Theory challenges the assumption of Homo Economicus, the notion of humans as purely self-interested rational actors. Instead, it acknowledges the role of social norms, cultural influences, and altruistic behavior in shaping individual and collective decision-making.
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In summary, Public Choice Theory provides a framework for analyzing the incentives and behavior of political actors within the context of decision-making institutions. It offers insights into the dynamics of taxation policy, government regulation, and other public policies by considering the rational self-interest of individuals and the influence of institutional arrangements on collective outcomes.
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causes versus correlations-
The excerpt touches upon the concepts of causation versus correlation, particularly in the context of social and economic inequality discussed in “The Spirit Level.” Let’s break down the distinction between the two:
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Correlation:
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Correlation refers to a statistical relationship between two variables. When two variables are correlated, changes in one variable are associated with changes in the other.
In the context of the excerpt, the book “The Spirit Level” argues that there is a correlation between higher rates of social pathology and dysfunction and more unequal societies. This means that as inequality increases, social problems like crime rates, mental health issues, and other forms of dysfunction tend to increase as well.
Correlation alone does not imply causation. It simply means that there is a relationship between the two variables, but it doesn’t indicate which variable is causing the change in the other.
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Causation:
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Causation refers to a cause-and-effect relationship between two variables. In this relationship, changes in one variable directly cause changes in the other.
Establishing causation requires more rigorous analysis and evidence than establishing correlation. It often involves conducting experiments or using advanced statistical techniques to control for confounding variables.
In the context of the excerpt, the book “The Spirit Level” suggests that inequality causes social dysfunction. This would mean that higher levels of inequality directly lead to higher rates of social problems.
However, the excerpt also mentions criticisms of the book for allegedly confusing correlation with causation. Critics argue that the book selectively uses data to support its claims and fails to adequately demonstrate a causal relationship between inequality and social dysfunction. Therefore, while the book presents compelling correlations between inequality and social problems, the extent to which inequality directly causes these problems is still subject to debate and further research.
In summary, correlation refers to a statistical relationship between two variables, while causation implies a direct cause-and-effect relationship. While “The Spirit Level” argues for a causal relationship between inequality and social dysfunction, critics suggest that the evidence presented may not be sufficient to establish causation definitively.
Four maxims of “smiling discrimination”- SLUM
Unfounded Differential Treatment: This involves baseless and often worse treatment of individuals, such as singling them out for extensive questioning or search, not based on any legitimate threat they pose but rather on their appearance or skin color. In the case described, individuals were subjected to searches or extra questioning based on assumptions correlated with certain demographics, such as high rates of drug-related crime among minorities.
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Multiple Interpretations of the Situation: “Smiling discrimination” is characterized by ambiguity, leading to various interpretations of allegedly discriminatory behavior. While some observers may recognize it as discriminatory, others may perceive it as routine or justified, depending on factors like their background, gender, or race. This subjectivity in interpretation can lead to accusations of oversensitivity by those who have not experienced such discrimination.
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Socially Acceptable Reasons for Discrimination: Discrimination may be perceived as fair or objective when justified by statistics or perceived correlations, such as racial profiling based on higher crime rates among certain demographics. However, these justifications often overlook the inaccuracies and biases in the data, leading to disproportionate targeting of minorities by law enforcement.
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Absence of Legal Punishment: Unlike overt forms of discrimination, “smiling discrimination” is difficult to prove and punish legally. While individuals may be treated differently based on their appearance or ethnicity, the ambiguity of the situation often makes it challenging to press charges or hold perpetrators accountable. As a result, instances of “smiling discrimination” may go unpunished due to the lack of clear evidence or understanding of discrimination by outside observers.
Bootstrapping Ideologies
Bootstrapping ideologies, rooted in framing effects, are belief systems that emphasize individual responsibility and self-reliance as the primary determinants of social and economic outcomes. Framing, in this context, refers to the cognitive process through which individuals interpret information, events, or social situations based on the context and perspective presented to them.
Framing shapes how individuals perceive and understand issues by highlighting certain aspects while downplaying others. Within bootstrapping ideologies, framing often emphasizes stories of individual success achieved through hard work and perseverance, while minimizing or disregarding systemic barriers and inequalities.
For instance, when discussing poverty, framing may focus on individual shortcomings, leading individuals to attribute poverty to personal failings rather than considering broader structural factors like unequal access to resources and opportunities. This framing aligns with the narrative of bootstrapping ideologies, which suggest that individuals can overcome adversity through individual effort alone.
Bootstrapping ideologies and their associated framing effects serve to legitimize existing social and economic structures by promoting the idea that success is solely a result of personal initiative. By framing success and failure in individualistic terms, these ideologies discourage collective action and demands for systemic change, as they imply that inequalities are a consequence of personal choices rather than systemic injustices.
Overall, bootstrapping ideologies rely on framing effects to internalize beliefs that justify socioeconomic inequalities, perpetuating the status quo and inhibiting grassroots movements for progressive redistribution of wealth and resources. Through framing, individuals come to accept and internalize the idea that their social position is determined by their own efforts, obscuring the role of structural factors in shaping outcomes.
