ECONOMIC INSTITUTIONS AND INEQUALITY

ECONOMIC INSTITUTIONS AND INEQUALITY - Economic...

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Unformatted text preview: Economic Institutions and Inequality 18/02/2008 09:07:00 A. ECONOMIC INSTITUTIONS? B. ECONOMIC SYSTEMS 1. CAPITALISM 2. WELFARISM 3. SOM C. GLOBALIZATION OF ECONOMY D. SOCIOECONOMIC CONSEQUENCES OF CAPITALISM E. MICHIGAN REVENUE F. HIGHEST PAID CEOS G. RICHEST OF THE WORLD A. WHAT ARE ECONOMIC INSTITUTIONS? Social organization of production, distribution, and consumption of goods and services in a society PRODUCTION OF GOODS o It was manual in the early days o There was very little production at first- simple tools were used o Due to industrialization, production systems expanded o As a result of capitalism, production has increased dramatically o Production depends on consumer (economic conditions, traditions, values, age group, gender)everything influences production o Production systems need to respond to massive numbers of people o Never independent of consumer DISTRIBUTION o Includes transportation of vehicles, roads, shipping, imports/exports CONSUMPTION o All 3 are independent B. ECONOMIC SYSTEMS OF THE WORLD 1. CAPITALISM The individuals own means of production (i.e. Wal-Mart, GE, Google) Everything is done for profit Guaranteed that your needs will be fulfilled 2. WELFARISM Based on the same principles as capitalism In a welfare state, individuals own means of production State is responsible for some of your basic needs The state is responsible for things like free education until college level, some money for food or other needs 3. SOM Ideally speaking none, but the Soviet Union, Hungarynow we say Cuba and maybe Venezuela are some of the examples of sot economies MEANS OF PRODUCTION ARE OWNED BY THE STATE Money, technical knowledge, machines that r used are owned by the state (the government owns them not individuals) PRODUCTION FOR USE NOT PROFIT They look at the needs of people State plans how much we should produce There are a million people in society, and you need 3 million shoes. There is no profit associated with this. They will make as many shoes as necessary. NO SOCIAL STRATIFICATION STATE IS RESPONSIBLE FOR BASIC NEEDS State is responsible for all your basic needs (food, clothing, housing) Whether you work or not, old or young, sick or healthy; the state will provide you with these basic needs no matter what C. GLOBALIZATION OF ECONOMY The economic and political interdependence of nations around the globe GLOBALIZATION OF PRODUCTION...
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This note was uploaded on 03/19/2008 for the course ISS 215 taught by Professor Lang during the Spring '06 term at Michigan State University.

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ECONOMIC INSTITUTIONS AND INEQUALITY - Economic...

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