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comparative sociology week 15 .ppt - Find

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					Different forms of capitalism,
  different forms of society


      Comparative Sociology
           Week 15
                      Recap
• Last week we looked at what comparative
  sociology is, and how it is done
     • Any questions, comments?


• For the rest of the course, we are going to
  look at some particular comparisons
     • Beginning with different forms of capitalism
                   Outline
• Definition of capitalism
• Consider two different forms
  – Neo-American
  – Germanic
• How do these different forms relate wider
  society?
               Capitalism
• What are the key points of capitalism?
  – Economic system
  – Private ownership of the means of production
  – Aim to make profits
  – Profits kept by owners of the means of
    production (apart from taxation)
  – ‘Free’ labour force
     Dominance of Capitalism
• Capitalism is now dominates the world.
  – The collapse of communism in the old USSR
  – China’s move into private enterprise
• But capitalism takes different forms.
  – Changes over time
  – Changes between places
               Capitalisms
Two distinct models
• Neo-American model
  – Individual success
  – Short-term financial gain
• Germanic model
  – Collective success
  – Long-term concerns
        Neo-American model
• Shift in the 1980s to the Monetarist school
  of economics in the US and the UK
     • Friedman
• Minimum intervention by the government
  in the economy (Laissez-faire)
• Belief that left alone the market will find
  equilibrium
             Changes made
• Deregulation
  – Many industries moved to control themselves
• Tax reductions
  – Particularly higher bands of taxation
• Control of money supply
  – Inflation controls
• Privatisation
  – Ending of state ownership
               Free-Market
• Supply and
  demand
  will
  balance
  themselves
              Competition
• Competition between individuals
  – Headhunting of top personnel
• Competition between companies
  – Market share
• Competition for investors
  – Need to maximise profits to ensure
    shareholder confidence
• What are the strengths and weaknesses of
  this form of capitalism
Impact of the policy under Thatcher
• Interest rates increased in the 1980s to
  bring down inflation
  – Mass unemployment


• Cuts were made to welfare provision

• Widening gap between rich and poor
                 Impacts


• Discuss with the people sitting next to you
  what impact you think these changes
  could have had?
           Germanic model
• Business closely linked to their
  country/region of origin
• Cross-ownership of companies common
• Extensive investment in training and
  research and development
• Partnerships between workers and
  mangers
  – Collective bargaining/works councils
• Extensive welfare provision
Advantages of Germanic model
• High level of social responsibility

• Job stability and security

• Reduction of social inequalities
  – For German nationals
Problems with Germanic model
• High cost of employment
  – Welfare costs
  – Training costs


• Need to adapt to a global marketplace
  – International competition
  – Short vs long term orientation
Advantages and Disadvantages


• Discuss with the people sitting next to you
  the advantages and disadvantages of the
  Germanic model of capitalism
      Related to wider culture
• American         • Collective
  individualism?     responsibility?
• What do you think these different ideals
  say about the cultures of the different
  places?
            American dream
• Nation build on immigration

• American Dream
  – Social mobility


• Competition to be the ‘best’
           German stability
• Borders changed but immigration lower

• Social cohesion valued

• Training/education collective responsibility
                Summary
• Capitalism not a stable entity
  – Changes over time and between places
• Two forms
  – Liberal market
  – Welfare capitalism


• Considered how this relates to national
  cultures
                Next week
• Look at national culture in more detail
  – What is culture?
  – Hofstede’s studies on organisations
  – Inglehart’s comparative work on values
  – Cultural change?

				
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