CHAPTER 18
THE ECONOMY AND WORK

The economic system refers to the social institution through which goods and services are produced, distributed and consumed.
The Economic system just like other social institutions such as family, religion, education, and government affects the social order and influence them.

TYPES OF ECONOMIC SYSTEMS
There are two basic types of Economic Systems.
1. Capitalism: This is an economic system in which the means of production are largely in private hands and mainly for accumulation of profit. That is, the economy is controlled by private individuals.
In a capitalist system of Government, the government is often regarded as laissez-faire (the government let them do what they want).
Capitalism encourages monopoly. Monopoly is the situation where there is only a single business firm in the market. Monopoly allows an industry to dominate and take effective control of commodity by dictating the prices, standards of quality and availability.
Examples of capitalism can be found in countries like USA, UK, Australia, Canada and other parts of Western Europe.

2. Socialism: This is an economic system in which means of production and distribution in a society is collectively owned rather than privately. The basic objective of this economic system is to meet the people’s needs rather than to maximize profits.
Socialist rejects laissez faire philosophy and encourages free competition which benefits the general public.
Socialism is often linked with communism in which all property is communally owned.
Socialism encourages Oligopoly in which there are few suppliers to a product and one supplier’s action can have significant impact on the prices and on its competitors.
Socialism or communism is common in countries like Russia, China, Vietnam, Cuba and Eastern Europe.


ASPECTS OF WORK
Occupations and Professions.
Occupation is whatever we do for pay. It could be a job, work, gig, stint, position, duty or vacation.
Occupation influences our social behavior in a number of ways. As part of the socialization process, people prepare for work. Our occupation also determines our position (status) in the society.
Profession refers to an occupation which requires extensive knowledge that is governed by code of ethics. Professionals have great deal of autonomy. They are responsible for their actions under least supervision.

It is widely agreed that Medicine and Law are professions whereas driving a taxi is an occupation.

WORK AND ALIENATION
The term alienation refers to the situation of being estranged or disassociated from the surrounding society.
The powerlessness of workers in a capitalist economic system often leads to alienation. The development of technology has also resulted to workers lack of fulfillment in performing their jobs.
Workers no longer have control over their occupational tasks, the products of their labor or the distribution of profits.
The solution to alienation is to give workers greater control over the workplace and the products of their labor.

WORKER SATISFACTION
Factors that Affect Job satisfaction:
1. Higher wages and remunerations
2. Working Hours and conditions
3. Responsibilities
4. Relationship with Superiors and Co-workers
5. Prestige of the work place
6. Job Security


THE CHANGING ECONOMY
The nature of the global economy is changing because nation’s economy is intertwined with and dependent on each other. We can examine the economy in the following ways.

a. The changing face of the workforce
b. Deindustrialization
c. Emergence of E-commerce
d. Rise of Contingency workforce.

a. The changing face of the workforce
In the past, men dominate the workforce. But since after the world war, more women have entered the workforce. Nowadays, there are numerous job opportunities open to women and minorities. The workforce more and more reflects the diversity of the population as ethnic minorities enter the labor force and immigrants and their children move on to position of greater responsibilities.
A more diverse workforce means that relationships between workers are more likely to cross gender, racial and ethnic lines.


b. Deindustrialization:
This refers to the systematic, widespread withdrawal of investment in basic aspect of productivity such as factories and plants.
Deindustrialization is often as a result of Recession (decline in economic activities). Due to this decline in economic activities, factories, or Giant Corporation may decide to relocate their investment, or need to decrease their labor.
Deindustrialization is usually done step by step. First, there may be a relocation of plants or factories from the city to suburbs. Next, they may relocate from suburb to other provinces and finally they may decide to relocate outside the country.
An important feature of deindustrialization is downsizing. Downsizing refers to the reduction of a company’s workforce.

c. E-commerce.
E-commerce refers to the different ways that people use the internet to do business from their computer. The emergence of E-commerce has changed the global economy. Nowadays, people can do their shopping, buy flight tickets, and make hotel reservation and other businesses online.
Websites such as www.amazon.com, www.alibbaba.com www.ebay.com, are examples of sites used for e-commerce.
You can also do money transfers and other banking services on the internet using E-banking.

Advantages of E-commerce
a. It saves time and energy
b. It by-passes the retail trade or traditional retail outlets.
c. It provides more opportunities to consumers in rural areas and disabilities assuming they have the necessary high tech infrastructures.

Disadvantage of E-commerce
a. It encourages social isolation and alienation
b. It disconnects the poor and disadvantaged who cannot use this technology.
c. It is also open to fraud and cyber crimes



d. The contingency workforce
Nowadays, there is an increase of temporary or short time workers as against permanent or long time employment. Contingency workforce is used to describe workers who are hired only for as long as they are needed.
Many unemployed workers and new workers accept temporary positions or part-time jobs for flexibility and control over their work time. Others do so because they cannot find other jobs. Examples of contingency workforce include freelancers who work from home through the internet. Another example is that of contract workers who are rented or hired for specific period of time.