: economic activities that increase the total economic value available to society o It means that you come up with something cool that other people want and the thing you came up with is better, cheaper, faster; and people choose it Rent seeking : economic activities that aim to move value from one company to another without increasing value The Environment One way of keeping costs low is to maintain efficient methods of production, which often means bypassing environmental concerns R V CH 14: CAPITALISM AND THE ECONOMY
Caring about the earth’s sustainability can be expensive; it requires maintaining low levels of pollution, disposing of waste in safe ways, and maybe investing in costly eco- friendly technology As a general rule, though, whenever industry spreads to a developing nation, environmental damage ensues o Dumping, pollution, and toxic accidents are the cost of development when it occurs without adequate government oversight Labor: Sweat It or Bust It Offshoring : a business decision to move all or part of a company’s operations abroad to minimize costs o By outsourcing production to sweatshops and call centers in the developing world, large companies can manufacture their products for a fraction of what it would cost to pay even minimum wages in the U.S. In the globalized economy, offshoring gives corporations based in the developed world access to a comparatively cheap and pliable workforce, largely composed of women, youth, and uneducated rural migrants in search of a better life When a group of workers gets together for collective bargaining, they form a union o DEF: an organization of workers designed to facilitate collective bargaining with an employer Union busting is a company’s assault on its workers’ union with the hope of dissolving it Unionization in America is protected under freedom of association, a right that is implied in the 1 st Amendment and recognized as a human right by the Right to Organize and Collective Bargaining Convention in 1949 o However, unionization has been on the decline since the 1950s, when 35% of workers in the private sector were covered by labor compared with just 6.6% today A survey of the economics literature shows that unions are associated positively with productivity in the United States across sectors, and particularly in manufacturing According to several studies, workers today have mixed feelings about unions New unionization efforts have increasingly been led by industries heavily represented by immigrants to America Conclusion Modern capitalism has, as we have seen, undergone a number of changes We have witnessed a new era of globalization, a workforce composition gender change, the emergence of a large service sector, and the rise and fall of trade unionism R V CH 14: CAPITALISM AND THE ECONOMY
R V CH 14: CAPITALISM AND THE ECONOMY
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