{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECONOMIC INSTITUTIONS AND INEQUALITY

ECONOMIC INSTITUTIONS AND INEQUALITY - Economic...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Economic Institutions and Inequality 18/02/2008 09:07:00  A. ECONOMIC INSTITUTIONS? B. ECONOMIC SYSTEMS 1. CAPITALISM 2. WELFARISM 3.   SOCIALISM   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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.   SOCIALISM Ideally speaking none, but the Soviet Union, Hungary…now we say Cuba and  maybe Venezuela are some of the examples of socialist 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
Image of page 2
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 ∙      
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern