Discussion: Introduction

The Economy as Foundation of Social Life

The Importance of Economics Structure

Karl Marx, the father of scientific socialism, famously stated in his Preface To a Critique of Political
Economy (1859), the most controversial assertion in sociology.
In the social production of their life, men enter into definite relations that are indispensable and
independent of their will, these relations of productions corresponds to a definite stage of development of
their material forces of production.
The mode of production of material life determines social, political, and intellectual life process in
general. It is not the consciousness of men that determines their being, but, on the contrary their social
being that determines their consciousness.
In the case of the Philippines, “lifestyles as indicative of class cultures may be inferred from material
possessions, the way people leisure and their exposure to the media and cultural preferences”.

Discussion:

The Hidden Injuries Class of Inequalities

 The book examines the effect of class barriers on blue collar workers by mirroring
occupational/ethnic backgrounds of the white manual-laboring population in the Boston area
through urban anthropological observations as well as 150 in-depth interviews conducted in
1969-70. It mainly reflects the experience of middle-aged, third generation American males. The
authors explore the moral hierarchy of national and cultural differences, the effects of the
intrusion of urban renewal, and the dilemma of working people trying to find out what position
they occupy in America. The interviews generally reflected a crisis in self-respect of the working
man, a hidden anxiety of feeling inadequately in control with feelings of self-defeat. A central
position of the book is that everyone in society is subject to a scheme of values whereby they
must unremittingly validate self by wearing "badges of ability" in order to win others' respect and
their own. The authors examine worker sacrifices, hopes, and defenses in light of the tangled,
complex relationship of denied freedom and dignity, and perceive the psychological motivation
of a class society as being the healing of self-doubt, which, in turn, keeps the class order going.
The Political Economy of Inequalities
 The extent of inequality in society is determined by the distribution of assets, the rates of returns
on different assets, and government policy. All of these things are deeply political and reflect the
balance of political power in society and the institutions to which this balance gives rise
Below are the types of class, according to Marx:

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 Discussion:
Below are the types of class, according to Marx:
a. Bourgeoisie. The bourgeoisie or capitalists are the owners of capital, purchasing and exploiting labour
power, using the surplus value from employment of this labour power to accumulate or expand their
capital. It is the ownership of capital and its use to exploit labour and expand capital are key here.
Being wealthy is, in itself, not sufficient to make one a capitalist (e.g. managers in the state sector or
landlords). What is necessary is the active role of using this wealth to make it self-expansive through
employment and exploitation of labour.
b. Proletariat. The proletariat are owners of labour power (the ability to work), and mere owners of
labour power, with no other resources than the ability to work with their hands, bodies, and minds.
Since these workers have no property, in order to survive and obtain an income for themselves and
their families, they must find employment work for an employer. This means working for a capitalist-
employer in an exploitative social relationship.
c. Landlords. In addition to the bourgeoisie and the proletariat, Marx discussed a number of other
classes. First, Marx mentions landowners or landlords as a class in Britain. While these were historically
important, and many still retain their wealth even today (e.g. the Royal Family
d. Petty Bourgeoisie and Middle Class. The lower middle class or the petty (petite) bourgeoisie (the
bourgeoisie was sometimes called the middle class in this era), constitutes "the small manufacturer, the
shopkeeper, the artisan, the peasant”.

System of Stratification as Source of Inequalities

 Social stratification refers to a society’s categorization of its people into rankings of

socioeconomic tiers based on factors like wealth, income, race, education, and power.
 Factors that define stratification vary in different societies. In most societies, stratification
is an economic system, based on wealth, the net value of money and assets a person has,
and income, a person’s wages or investment dividends. While people are regularly
categorized based on how rich or poor they are, other important factors influence social
standing. For example, in some cultures, wisdom and charisma are valued, and people
who have them are revered more than those who don’t. In some cultures, the elderly are
esteemed; in others, the elderly are disparaged or overlooked. Societies’ cultural beliefs
often reinforce the inequalities of stratification.

Systems of Stratification

 Sociologists distinguish between two types of systems of stratification. Closed systems

accommodate little change in social position. They do not allow people to shift levels and
do not permit social relationships between levels. Open systems, which are based on
achievement, allow movement and interaction between layers and classes. Different
systems reflect, emphasize, and foster certain cultural values and shape individual beliefs.
Stratification systems include class systems and caste systems, as well as meritocracy.

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SCHOOL OF BASIC EDUCATION STUDENTCURRICULUMPACKAGE
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 Discussion:

The Caste System

 Caste systems are closed stratification systems in which people can

do little or nothing to change their social standing. A caste system is
one in which people are born into their social standing and will
remain in it their whole lives. People are assigned occupations
regardless of their talents, interests, or potential. There are virtually
no opportunities to improve a person’s social position.

The Class System

 A class system is based on both social factors and individual achievement.

 A class consists of a set of people who share similar status with
regard to factors like wealth, income, education, and occupation.
Unlike caste systems, class systems are open. People are free to
gain a different level of education or employment than their
parents. They can also socialize with and marry members of other
classes, which allows people to move from one class to another.

Financial Literacy and Risk Management in the Runaway World

 Globalization is widely seen in the developing world as
merely the latest stage in the exploitation of the third world
by the West. Three themes repeatedly surface in anti-
globalization movements: anti-Americanism, the role of the
big corporation and world inequality.

 Geopolitically, the world is becoming more polycentric. Western,

and more specifically American, cultural influence is visible
everywhere. But this is only on first look. Globalization is actually
producing bigger cultural diversity. The power of big corporation
can easily be exaggerated. Nations have control of territory,
corporations do not; nations establish frameworks of law,
corporations do not; nations control military power, corporations
do not. With inequality we need to check if they really increase and
is that result of globalization. It was true that inequality grew a lot
between 1860 and 1960, but since then not so much. In some
nations with high growth rates inequalities did increase, but that is
because before those nations had “equality in poverty”.