Soc 2 Notes

Soc 2 Notes - Soc 2 Notes 05:51 State : The central...

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

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Soc 2 Notes 05:51 State : The central government of a country Markets : Systems that facilitate the exchange of goods and services BIG Issue: How much should states control (regulate) markets? Markets need some state control to function To prevent fraud & illegal activity And, unregulated markets produce adverse side-effects Examples: environmental degradation; lead in our toys Also, uncontrolled markets can be unstable, leading to crashes o But, heavy regulation can limit the ability of markets to produce incentives & wealth Often, businesses can make more $ if regulation is kept to a minimum. So, there is a tension between proponents of more or less regulation How much should states control markets? When should the state produce goods, instead of markets? We begin with these questions for 3 reasons: 1. Hugely important issue of the past century o Ex: Cold war: Communism vs. Capitalism o Ex: Democrats vs. Republicans in the US. 2. The path of economic globalization depends on how governments control (or do not control) markets 3. Globalization, in turn, affect the ability of states to control markets The Credit Crisis of 2008 Issue: Many kinds of banking in the US are only weakly regulated o See readings from week 1: o Krugman, Paul. Partying Like Its 1929. The New York Times, March 21, 2008. o Leonhardt, David. Cant Grasp the Credit Crisis? Join the Club. The New York Times, March 18, 2008. Result #1: Big profits, much new wealth created! o Many people got cheap home mortgages o Companies got rich Result #2: Big disasters o Bear Stearns (a big company) goes bankrupt o Financial markets in turmoil o Lots of people losing their homes Major themes of first section of course: 1. State regulation of markets has declined over the past 50 years o Shift toward free markets o Rise of supercapitalism (Reich reading) 2. Markets have globalized o Emergence of global supply chains o Corporations less linked to any particular country o Link between nation and market has weakened. Untouchables Someone who cant have their job outsourced o Specialized o Anchored o Adaptable State control Regulation Central Planning Public Services [roads, dams, national parks] Free Markets Deregulation [airlines] Liberalization Privatization [Thatcher sells industries: coal] 1900: global free-market economy 1929: Stock market crash Bank runs (everyone withdraws) New Deal: Roosevelt Keynesian ideas to increase gov spending for workers Increase regulation to stabilize markets 1950-70: Keynesian...
View Full Document

This note was uploaded on 04/20/2011 for the course SOC 2 taught by Professor Bean during the Spring '00 term at UC Irvine.

Page1 / 25

Soc 2 Notes - Soc 2 Notes 05:51 State : The central...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online