1. Capitalism
    Economic system based on private ownership of property, guided by the seeking of maximum profits.
  2. 4 aspects of pure capitalism
    Private ownership of the means of production, economic activity motivated by profit seeking, competition/market forces determine prices, laissez-faire governmental stance.
  3. Socialism
    Economic system in which the means of production are owned by the people for their collective benefit.
  4. 5 principals of Socialism
    • 1. democratism is use as a way of accountability.
    • 2. egalitarianism in opportunity or outcome.
    • 3. emphasis on collective/community interests.
    • 4. public ownership of the means of production.
    • 5. planning as a way to meet collective goals.
  5. Egalitarianism
    a principle that states all people are equal and deserve equal rights.
  6. Industrial revolution
    Social and economic changes due to innovations in technology.
  7. ´╗┐Structural transformation of the economy
    Fundamental change of the economy resulting from several powerful contemporary forces.
  8. Globalization
    Process which people around the globe are being interconnected economically, politically, culturally, and environmentally.
  9. Localization
    Process by which people respond to globalization pressures by becoming less integrated.
  10. 9 Current Recession factors
    • 1. Deindustrialization
    • 2. Union Decline
    • 3. Hourglass Economy
    • 4. Wage Stagnation
    • 5. Shift pensions to retirement accounts
    • 6. Decline in personal savings.
    • 7. Contingent Employment
    • 8. Many unemployed people that want to work
    • 9. Alienation
  11. Deindustrialization
    the decline in the importance of the manufacturing industry in a nation or area.
  12. Union Decline
    Decrease in number of unionized employees or unionized workplaces in a nation or area.
  13. Hourglass Economy
    An occupational structure in which middle class and higher-wage working class occupations decline in proportion to unskilled service sector.
  14. Wage Stagnation
    low or non-existent growth in real wages
  15. Contingent Employment
    employment arrangement whereby employees work as temporaries or independent contractors. Frees employers from paying fringe benefits.
  16. Reserve Army of the unemployed
    unemployed people that want to work.
  17. Alienation
    seperation of human beings from each other, from themselves, and from the products they create.
Card Set
Outline 3