Work & Economy Flashcards
How do we define work and the economy?
Work—physical or mental activity that accomplishes or produces something, either goods or services
The economy—the social institution that determines how a society produces, distributes, and consumes goods and services
Capitalism
Capitalism—an economic system in which wealth is in private hands and is invested and reinvested to produce profits
Characteristics of Capitalism: Private ownership of property Competition Profit Investment
Conglomerate
Conglomerate—a giant corporation that owns a collection of companies in different industries
Conglomerates acquire companies through mergers.
Describe work in the U.S. today.
Financial hardship is a top issue for a majority of Americans.
Housing boom (2005-2007) burst resulting in foreclosures and massive debt.
Americans are losing economic ground.
Because of globalization workers in other countries are displacing workers in the U.S.
Labor union membership has decreased (down to 12%).
Mixed Economies
Mixed economies—include socialist programs but incorporate capitalistic features
Communism—a political and economic system in which all are equal
> Over time communist countries came to endorse aspects of capitalism.
Global Economies
Globalization—the spread of interdependent investment, trade, production, communication, and technology throughout the world
Advantages: increases economic freedom; creates jobs; provides affordable goods and services
Disadvantages: exploits poor workers; spreads pollution; destroys cultures and habitats
Global Economies
Globalization—the spread of interdependent investment, trade, production, communication, and technology throughout the world
Advantages: increases economic freedom; creates jobs; provides affordable goods and services
Disadvantages: exploits poor workers; spreads pollution; destroys cultures and habitats
Interlocking directorate
Interlocking directorate—the same people serve on the boards of directors of several companies or corporations
A relatively few people control the corporations and industries.
Transnational corporation
Transnational corporation—a large business that is based in one country but operates across international boundaries
Also called multinational or international corporations
These corporations can avoid trade tariffs, bypass environmental laws, and pay low wages.
Transnational conglomerates
Transnational conglomerates own a collection of different industries in a number of countries.
A very small number of corporations and interlocking directorates hold most of the global economic power.
