Module 6 ppt (econ)
- 1. Sociology of Poverty MOD 6: Structural Perspectives (Economic)
- 2. Two Distinct Eras in Recognizing Poverty 1945-1973 – The Golden Age Strong economic growth and rising productivity Workers’ wages rose steadily Rate of poverty declined sharply 1973-present – the “40-year slump” Productivity and economic growth slowed Lower corporate profits and earnings for workers Increased unemployment rate
- 3. Two Economic-Related Theories Technology theory Related to the human capital theory (individualistic perspective) “Technological change…has induced a shift in the demand for labor—to the advantage of those with more education” (Royce, 2015, p. 89). Power shift theory Related to conflict perspective (division between business owners and workers) “The transformation of the American economic system since the early 1970s has produced a deterioration in the quality of jobs, especially for less-educated workers” (p. 95).
- 4. Technology Theory Related to the human capital theory (individualistic perspective) “Technological change…has induced a shift in the demand for labor—to the advantage of those with more education” (Royce, 2015, p. 89). Skills mismatch exists between what jobs demand and workers bring CRITIQUE: “Computerization does not necessarily increase skill requirements…and may even leading to deskilling: cashiers using scanners at the checkout counter” (p. 92.
- 5. Power Shift Theory Conflict perspective divisions -- 4 examples: Profits vs. wages “Corporate profits have increased…while wages salaries have decreased” (p. 94). Productivity vs. pay “Beginning in the 1970s….worker compensation fell behind productivity growth” (p. 94). Supervisory work vs. production work Massive income shift recognized in “those who watch over those wo do the work” (p. 94). CEO vs. workers “In 2013, the typical CEO of a large firm received in compensation 296 times that of the typical worker” (p. 95).
- 6. Key Economic Issues Related to Poverty Deindustrialization Globalization Corporate Restructuring Shortage of Jobs
- 7. Key Economic Issues Related to Poverty Deindustrialization – significance of the manufacturing industry 1959: 15.3 million manufacturing jobs 1969: 18.6 million jobs Historic low 11.5 million in 2010 Rising modestly to 12.1 million in 2014 Rise of jobs in the service industry Lower wage levels Unlikely to unionize
- 8. Key Economic Issues Related to Poverty Globalization “Commonly used to refer to the growing integration of national economies, an outcome of international trade” (p. 99). Technological advancements in transportation and communication have widened the global reach for businesses to focus on profits Not only an economic and technological issue -- also a political matter Trans-Pacific Partnership China and giant retailers drive U.S. business out of business or overseas – creating a loss of millions of U.S. jobs (p. 100). Uneducated workers are now competing with a global population of workers
- 9. Key Economic Issues Related to Poverty Effects of Globalization: Outsourcing and offshoring (moving jobs or companies overseas) Reduced quality of jobs Workers have to accept lower quality service jobs Heightened feelings of job insecurity Undermines democracy Neoliberal globalization “promotes free-market capitalism on an international scale” and plays “a significant role in the perpetuation of poverty and inequality” (p. 104).
- 10. Key Economic Issues Related to Poverty Corporate Restructuring Changing hiring and wage-setting practices Replacing regular, FT employees with a PT and temporary workforce 1993 TIME magazine’s “The Temping of America” Types of Labor Opportunities Day Labor Temporary Workers Regular Part-Time Workers
- 11. Key Economic Issues Related to Poverty Jobs Shortage Two aspects of the U.S. employment crisis: number of jobs & job quality Shortage of jobs creates four groups: Unemployed “Inactive unemployed” -- those who have given up looking for work Involuntary part-time workers FT, regular workers living in poverty