Economic Institution, Very Final


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Economic Institution, Very Final

  1. 1. Chapter 13 The Economy and Work in Global Perspective
  2. 2. Chapter Outline • Comparing the Sociology of Economic Life with Economics • Economic Systems in Global Perspective • Contemporary World Economic Systems • Perspectives on Economy and Work in the U.S. • The Social Organization of Work
  3. 3. Chapter Outline • Unemployment • Worker Resistance and Activism • Employment Opportunities for Persons with a Disability • The Global Economy in the Future
  4. 4. Sharpening Your Focus • What are the key assumptions of capitalism and socialism? • What contributes to job satisfaction and to worker alienation? • What is the individual’s role in the work force? • Why does unemployment occur? • How do workers attempt to gain control over their work situation?
  5. 5. The Economy • The social institution that ensures the maintenance of society through the production, distribution, and consumption of goods and services. • Goods are tangible objects that are necessary or desired. • Services are intangible activities for which people are willing to pay.
  6. 6. The Economy • Labor - the group of people who contribute their physical and intellectual services to the production process in return for wages. • Capital - wealth owned or used in business by a person or corporation.
  7. 7. Functionalist Perspective of Economy and Work in the U.S. • Functionalists view the economy as a vital social institution. • When the economy runs smoothly, society functions more effectively. • If the system becomes unbalanced, such as when demand does not keep up with production, a maladjustment occurs.
  8. 8. Characteristics of the Postindustrial Economy 1. Information displaces property as the central preoccupation in the economy. 2. Workplace culture shifts away from factories and toward diverse work settings, the employee, and the manager. 3. The conventional boundaries between work and home are breached.
  9. 9. How Much Do You Know About the Economy and the World of Work? True or False? • Many of the new jobs being created in the service sector pay poorly and offer little job security.
  10. 10. True • Many of the new jobs being created in the service sector, such as nurse’s aide, childcare worker, hotel maid, and fast-food server, offer little job security and low pay.
  11. 11. Fastest Growing Occupations, 2002– 2012 Medical records and information 47% A.A. technicians Short on-the-job Physical therapist aides 46% training Computer software engineers, 46% B.A. applications Computer software engineers, 45% B.A. systems Physical therapist assistants 45% A.A.
  12. 12. Fastest Growing Occupations, 2002– 2012 Moderate on-the-job Medical assistants 59% training 57% Network and data analysts B.A. Physician assistants 49% B.A Social and human service 49% Moderate-on-the-job assistants training Home health aides 48% Short-on-the-job training
  13. 13. Job Security • Many people who thought their jobs were secure have found themselves looking for a new position. • What changes in the U.S. and global economies caused this shift in many people’s careers?
  14. 14. How Much Do You Know About the Economy and the World of Work? True or False? • Labor unions will probably cease to exist sometime during this century.
  15. 15. False • Sociologists who have examined organized labor generally predict that unions will continue to exist; however, their strength may wane in the global economy.
  16. 16. •MARCH 15, 2009, 10:19 P.M. ET Labor-Backed Contract Rules Advance By CHRISTOPHER CONKEY Congressional Democrats are advancing labor-friendly rules on federal contracts just as the government spends billions in an effort to jump-start the economy. In the $787 billion economic recovery package and in a separate infrastructure bill passed by the House last week, Congress expanded the application of the so-called Davis-Bacon and Buy American rules. The former, opposed by many Republicans and some leading business groups, dictate that contractors on federally funded projects can't pay their employees anything less than the locally "prevailing wage" for their services.
  17. 17. Free-trade advocates said the Buy American clauses are part of a growing protectionist tilt in the U.S., ranging from restrictions on H1B visa holders in the stimulus bill to talk that auto makers getting federal aid will have to shun foreign parts suppliers, and that banks getting rescue funds will have to focus their lending efforts more on American borrowers. With just weeks before the G-20 meeting, "other countries are going to recriminate," said Gary Hufbauer, senior fellow at the Peter G. Peterson Institute for International Economics. He added that 17 of the 20 countries participating in the April summit have followed the U.S. and adopted measures designed to protect domestic workers and industries at the expense o f foreign competitors.
  18. 18. Unemployment • Long lines at unemployment offices are a recurring sight throughout the U.S. when workers are laid off from their jobs. • When one person is unemployed, it may be a personal problem, but when large numbers are laid off, it becomes a social issue.
  19. 19. Unemployment Rate • The percentage of unemployed persons in the labor force actively seeking jobs. • In 2000 the U.S. unemployment rate was 4% and workers who had historically suffered from high unemployment rates made some gains.
  20. 20. APRIL 2, 2010 Wall Street Journal Job Market Picks Up, but Slowly By SUDEEP REDDY And JOE LIGHT The job market is showing signs of life, though its slow recovery suggests unemployment will remain high for years to come.
  21. 21. Employers added 162,000 jobs in March, the biggest monthly gain in three years, with one-third of the growth coming from the government's hiring of 48,000 temporary workers for the 2010 Census. Despite those gains, the jobless rate held steady at 9.7% as new workers entered the job market and people who had previously quit the labor force returned. The average length of unemployment rose last month to the highest point since record keeping began in 1948: more than 31 weeks. The number of workers out of work for six months or more rose sharply. The latest report, which marks the third month since November in which payrolls increased, indicates the labor market is pulling out of a deep downturn that slashed more than eight million jobs since the recession hit in late 2007.
  22. 22. It confirms that the economy has turned an important corner," says J.P. Morgan Chase & Co. chief economist Bruce Kasman. "It's been growing for a while, but I think what we're seeing is that this growth is now broadening out to include jobs.“ The stock market was closed Friday for a holiday, but the jobs report sent stock futures climbing during a morning session. As investors anticipate a stronger economy—and look ahead to an eventual Federal Reserve rate hike—they pushed down Treasury debt prices, sending the yield on 10-year Treasury notes, the benchmark for corporate and consumer borrowing, to 3.94%, the highest since June. Among those who have landed jobs lately is New York Web developer Philip John Basile, although, as with many other new hires, it is a temporary six-month assignment with the Leukemia & Lymphoma Society. He had been searching in earnest for three months, he says. "I'm still looking for a permanent job, but this is a good middle ground," he says
  23. 23. Many employers are reluctant to hire until they see stronger evidence of an economic recovery. Private-sector payrolls increased by 123,000 in March, but much of that boost was a bounce back from employment depressed in February by snowstorms. The government said overall payrolls increased by an average of 54,000 a month over the last three months. The economic recovery so far remains heavily reliant on government support, which is visible in the jobs numbers. Hiring for the decennial census is expected to add hundreds of thousands of temporary jobs in the coming months. Other forms of government intervention also remain crucial. The housing sector's boost is being driven in part by tax breaks and extensive government support for the mortgage market. And last year's $787 billion stimulus is temporarily preventing even deeper job losses in fields from construction to education.
  24. 24. Who's Hurting?
  25. 25. "We don't expect it to get worse, but we're not seeing a rebound yet," says Donald Stone Jr., chief executive of Dewberry & Davis, a Fairfax, Va.-based engineering firm. The closely held company is hiring 30 right now, but doesn't expect employment to return to its peak anytime soon, Mr. Stone says. Dewberry employed 1,800 in 2009, about 10% below its prerecession high. While stimulus projects have bolstered its business with the federal government, state and local governments still seem strapped for cash, Mr. Stone says. Dewberry's private development work also has remained scarce. "Projects have been very sporadic and certainly not what I would call a rebound," he says.
  26. 26. Catholic Health Initiatives, a nonprofit national health- care provider based in Denver, is taking a wait-and-see approach to hiring. Over the last 18 months, the company laid off about 2,000, leaving its work force at 70,000, says chief operating officer Michael Rowan. With inpatient admissions down 3.5% this year, Mr. Rowan expects staffing to grow only 1%, and that will happen through acquisitions. Health care was one of the few sectors adding jobs during the downturn. But in March, the gains were broad-based.
  27. 27. The retail sector added 14,900 jobs. Temporary employment—a positive indicator for the labor market, since many employers increase temp hiring as a prelude to adding permanent jobs— increased by 40,200. Construction added jobs for the first time since mid-2007, although the gains likely were the result of a bounce back from February's weather slowdown. Manufacturing added 17,000 jobs, the third straight month of gains. Replacing the more than eight million jobs lost since the recession started likely will take much of the next decade. The economy needs to create at least 100,000 jobs a month just to keep the unemployment rate flat, due to population growth. Because of the downturn, millions of Americans quit searching for work or dropped out of the labor force. A broader measure of unemployment, which includes people who stopped looking for work and those settling for part-time jobs, rose to 16.9% in March
  28. 28. The government's March jobs report showed strong gains over recent months. Despite additional census jobs, the report was slightly weaker than expected, but with stock markets closed for Good Friday, the report's full impact will be more apparent next week. The improving economy is certain to draw more job seekers back into the market, one factor likely to keep the unemployment rate from dropping quickly. The labor force—those working or looking for work—grew by 398,000 in March, the third straight monthly increase. Federal Reserve officials expect the jobless rate to remain above 9% through this year and above 8% throughout 2011. The large pool of available labor is likely to constrain wage growth in the coming years. The report showed that average hourly earnings declined 0.1% during the month, although the average work week and total hours worked grew. For that reason, even with the latest turn toward job growth, the Fed isn't likely to raise interest rates until late this year at the earliest.
  29. 29. Types of Unemployment • Cyclical - result of lower rates of production during recessions. • Seasonal - result of shifts in the demand for workers based on holidays. • Structural - skills needed by employers do not match skills of unemployed.
  30. 30. Underground (or Shadow) Economy • The underground economy involves activities such as cash payments to workers that are never reported as earnings and on which no taxes are paid. • Does the underground economy constitute a threat to the legitimate economy?
  31. 31. Globalization of Markets • Dramatic changes in stock markets in nations such as Japan and the United States create reverberations that are felt in financial markets around the world.
  32. 32. How Much Do You Know About the Economy and the World of Work? True or False? • Around the world, positions with the most job security are located in large, transnational corporations.
  33. 33. False • Although it is difficult to determine which types of jobs are the most secure, many positions in transnational corporations have been lost through downsizing and plant relocations and closings.
  34. 34. Capitalism • Built on the pursuit of profit. • The opening-bell ceremony at the New York Stock Exchange is a symbol of that pursuit. • Although corporations and shareholders may reap economic gains from the stock market, most families do not own stock.
  35. 35. Capitalism Four distinctive features: 1. Private ownership of the means of production. 2. Pursuit of personal profit. 3. Competition. 4. Lack of government intervention.
  36. 36. Mixed Economies • Combine elements of a market economy (capitalism) with elements of a command economy (socialism). – Democratic socialism: combines private ownership of some of the means of production, governmental distribution of some essential goods and services, and free elections.
  37. 37. The U.S. Economy • In April 2007, our national debt was $8,851,983,831,350, making each citizen’s share more than $29,000. • Many workers will be fragmented into two major labor market divisions: 1. Those who work in the innovative, primary sector. 2. Those whose jobs are located in the growing secondary, marginal sector.
  38. 38. Senate Trims Obama's Plans For Spending By DAVID HOGBERG, INVESTOR'S BUSINESS DAILYPosted 03/25/2009 06:55 PM ET Senate Democrats' budget plan released Wednesday includes less spending than President Obama wants, lets more tax cuts expire and doesn't address his ideas on education or climate change. The president would spend $3.67 trillion in fiscal year 2010 and hike taxes by $942 billion over five years, based on Congressional Budget Office estimates. The deficit would fall in half by 2014 to $749 billion, or 4.3% of GDP, before rising again. Deficits over 3% aren't deemed to be sustainable long-term.
  39. 39. The president wants to move the government to the left, make it far more expansive and intrusive," said Senate Budget Committee ranking member Judd Gregg, R-N.H. Senate Budget chair Kent Conrad, D-N.D., described his panel's budget as trying "to preserve the major priorities of the president while making the necessary adjustments necessary in light of the dramatic change in the CBO's estimates." Last week the CBO said that "the outlook for the budget deficit has deteriorated further." Citing continued economic woes, it estimated that 2010- 2014 deficits would be $670 billion higher than the administration projects. Budget resolutions are nonbinding blueprints for taxes and spending, setting caps for appropriating panels later in the year
  40. 40. •Wall Street Journal, MARCH 31, 2009, 11:01 A.M. ET U.S. Bailouts So Far Total $2.98 Trillion, Official Says MORE IN POLITICS » By MEENA THIRUVENGADAM WASHINGTON -- A special inspector general overseeing government efforts to bail out portions of the private sector said Tuesday the U.S. so far has committed nearly $2.98 trillion toward stabilizing financial companies and rescuing domestic auto makers. The figure reflects spending on the U.S. Treasury's Troubled Asset Relief Program, as well as funding for various programs from the Federal Reserve and the Federal Deposit Insurance Corp., special inspector general Neil Barofsky planned to tell the Senate Finance Committee. It doesn't include costs for working-capital loans to General Motors Corp. and Chrysler LLC or a new government auto-warranty- guarantee program announced Monday.
  41. 41. Such a large commitment of funds in such a short time "will inevitably attract those seeking to profit criminally," Mr. Barofsky said in a testimony prepared for a committee hearing Tuesday. "If, by percentage terms, some of the estimates of fraud in recent government programs apply to the TARP programs, we are looking at the potential exposure of hundreds of billions of dollars in taxpayer money lost to fraud," he planned to tell lawmakers. In a separate report Tuesday, the Government Accountability Office said Treasury alone has announced plans for as much as $667.4 billion in TARP funds. The office, however, noted that all of those funds haven't yet been disbursed and estimated actual expenditures for programs announced thus far would likely reach $590.4 billion. That estimate would leave the TARP with just $109.6 billion, less than the $134.5 billion Treasury said it estimated remained in the fund.
  42. 42. In its report, the GAO said it remains difficult to assess the rescue program's effects and recommended the Treasury seek out concessions from employees of American International Group Inc. and the counterparties who have done business with the insurance giant. AIG, the recipient of $173 billion in federal aid, has become the subject of sharp criticism for paying out $165 million in employee bonuses after being rescued by the government and for payments it has made to banks with which it has done business. In his testimony, Mr. Barofsky said his office has initiated an investigation into AIG's bonus payments. "We will be looking closely to ensure that the bonuses to AIG employees are not inconsistent with AIG's legal or contractual obligations," Mr. Barofsky said, adding that his office will "report to Congress the sequence of events which led to the approval of these payments by government officials." "I too am frustrated with these very substantial bonuses given at a time when AIG would have by now been in bankruptcy proceedings but for huge, repeated infusions of government money," his testimony said. Mr. Barofsky said his office, at the request of congressional leaders, also plans to investigate payments AIG made to its counterparties. Write to Meena Thiruvengadam at
  43. 43. Conflict Perspective of Economy and Work in the U.S • From a conflict perspective, business cycles are the result of capitalist greed. • As prices increase, workers are not able to purchase products. • Surpluses cause capitalists to close factories, and lay off workers. • Karl Marx referred to the propensity of capitalists to maximize profits by reducing wages as the falling rate of profit.
  44. 44. Budget Breakdown The budget blueprint estimates a federal deficit of $1.75 trillion for 2009. The Obama administration plans to create a task force to consider elimination of corporate loopholes and subsidies, tougher enforcement against tax avoidance, and tax simplification, White House Budget Director Peter Orszag said late Tuesday.
  45. 45. •MARCH 25, 2009 White House to Hunt for New Tax Revenues Task Force to Weigh Ending Loopholes, Bolstering Enforcement as Lawmakers Take Aim at Budget By JOHN D. MCKINNON, GREG HITT and NAFTALI BENDAVID WASHINGTON -- The White House said it would launch a search for new tax revenues, as Congressional leaders moved to scale back proposed spending increases and tax cuts in President Barack Obama's ambitious budget. View Interactive
  46. 46. Mr. Obama's budget proposal began the process of addressing problems such as the tax gap, the difference between taxes owed and taxes collected. "The question is whether we can be even more aggressive" in those areas, Mr. Orszag said in an interview late Tuesday. The task force will be run through a White House advisory board being headed by former Federal Reserve Chairman Paul Volcker, Mr. Orszag said. No target for a dollar figure has been set. But the effort theoretically could lead to tens of billions of dollars in additional collections. The tax gap alone is estimated at $300 billion a year, of which more than $100 billion is believed to be collectible, according to IRS statistics. By congressional estimates, annual spending on basic government services -- programs other than defense and entitlements -- would rise by more than 10% in fiscal 2010 under the $3.6 trillion Obama plan. Sen. Kent Conrad (D., N.D.), chairman of the Senate Budget Committee, presented his version of Mr. Obama's budget to his colleag ues. on Tuesday, including an increase in annual nondefense spending of 7% for 2010 -- a $15 billion reduction from the president's.
  47. 47. including an increase in annual nondefense spending of 7% for 2010 -- a $15 billion reduction from the president's.
  48. 48. Federal Income Tax Return: 1928 Grandfather R. Carlson Berwyn, Illinois
  49. 49. By INVESTOR'S BUSINESS DAILY | Posted Thursday, January 29, 2009 4:20 PM PT Stimulus: Washington's attempt to spend us out of our economic doldrums gets more ambitious by the day and could total more than $1 trillion once interest is figured in. The long-range implications of this are alarming
  50. 50. AMERICAN RECOVERY AND REINVESTMENT ACT Source: Of the $787 billion American Recovery and Reinvestment Act of 2009 (ARRA or Recovery Act) signed by President Obama on February 17, 2009 approximately $100 billion designated for education. This unprecedented funding is targeted to save or create hundreds of thousands of jobs, support states and school districts, and advance reforms and improvements intended to create long-lasting results for our students and our nation in the areas of early learning, K-12, and post-secondary education
  51. 51. Education: Funds for state education budgets and other critical services, as well as grants for 'Title I' and other programs for disadvantaged children, special education, technology for schools, services for disabled people and federal work-study programs in colleges. $7.15 billion to meet the Pell Grants federal student loan program shortfall for 2008-9 and to increase the maximum award for 2009-10. PER CAPITA SPENDING, EDUCATION IN FLORIDA = $238; STIMULUS FUNDING
  52. 52. Workforce Investment Act of 1998 created Local Workforce Investment Boards Directs federal, state & local funding to local workforce development programs Career & Service Centers of Southwest Florida (One Stop Centers) Partnering with Rapid Recovery Program
  53. 53. Transparency, Reform, and Accountability the Federal Department of Education expects to guide state ARRA spending decisions toward reform. Making progress toward rigorous college- and career-ready standards and high quality assessments that are valid and reliable for all students, including English language learners and students with disabilities;
  54. 54. ELIGIBLE RAPID RECOVERY EDISON STATE PROGRAMS BUSINESS & TECHNOLOGY PROFESSIONS • Accounting Applications Certificate • Accounting Technology Associate in Science Degree • Business Administration And Management Associate in Science Degree • Computer Programming And Applications Specialist Certificate • Computer Programming And Analysis Associate in Science Degree • Drafting & Design Technology Associate in Science Degree • Internet Services Technology Associate in Science Degree • Networking Specialist Certificate • Networking Services Technology Associate in Science Degree • Small Business Management Certificate
  55. 55. EDUCATION PROFESSIONS—removed from eligibility list June 30, 2009 Early Childhood Education Associate in Science Degree Elementary Education Bachelor of Science Degree Secondary Biology Education Bachelor of Science Degree Secondary Mathematics Education Bachelor of Science Degree
  56. 56. Wall Street Journal AUGUST 11, 2009 A Hard Lesson for Teachers By DANA MATTIOLI Widespread layoffs caused by tight school budgets are forcing thousands of teachers out of the classroom, in some cases, permanently. Many are taking other jobs or considering changing careers, even as they anxiously hope to be recalled. When school begins this month, as many as 100,000 of last year’s teachers won’t have jobs, resulting in an overall drop in education jobs in the U.S., estimates Carmen Quesada, director of field operations for the National Education Association, the nation’s largest teachers’ union. Quesada, director of field operations for the National Education Association, the nation’s largest teachers’ union. Altering a Career Path Judith Franco at her work bench. That’s a jolt to people drawn to teaching in part for its recession-proof reputation. The number of people working in local education has increased every year since 1983, according to the Bureau of Labor Statistics. That streak is now in jeopardy: Local schools employed fewer people overall, including non teachers, in July, the latest month available, than in July 2008. The majority of the layoffs have involved non tenure teaching positions, with cuts determined by seniority. Judith Franco is among those affected. She taught typing and business technology at Westglades Middle School in Parkland, Fla., for two years before being laid off in June— one of 394 teachers laid off by the Broward County Public Schools.
  57. 57. Now, the 45-year-old single mother is plotting how to pay her daughter’s college tuition, while supporting her 13-year-old son and a brother with lymphoma. She is considering resuming the alterations business she ran for 20 years before teaching. She recently reconnected with former clients and has lined up a few jobs working on weddings. “I’m in wait-and-see mode,” she says. “I’m looking everywhere.” Historically, many teachers laid off during tough times quit the profession. New York City laid off 15,000 teachers during its fiscal crisis in the 1970s. It later recalled 10,000, but only 3,000 returned, according to Randi Weingarten, president of the American Federation of Teachers. “You’ll lose teachers to other professions. They certainly didn’t come to education to become rich,” says Ms. Weingarten. Some teachers given pink slips last spring have been recalled. Eighth-grade English teacher Samantha Terrasas, 28 years old, was notified of her impending layoff in March, a few months before she was named the “Outstanding New Teacher” in San Lorenzo, Calif. In late July, she was offered her job back and accepted. Even when teachers are recalled, job security is never certain, and that can take a toll. Audrey Day, 30, taught fourth and fifth grades for three years in San Diego. During that time, she was told five times that she might have to change schools; and she was formally notified she might be laid off only once. Ms. Day never lost her job, but says the process was extremely stressful and made her wary of bonding with her students. “Ultimately I worked far too hard through an undergrad degree, credential [program] and master’s not to know month to month if I’ll have a position,” she says. In 2007, Ms. Day quit to prepare for law school. She starts Seton Hall University law school later this month.
  58. 58. Lauren Sikorski, 25, recently laid off after two years teaching special- education math at Carteret Middle School in Carteret, N.J., plans to pursue a degree in occupational therapy, beginning next spring. “The plan my whole life was to be a teacher,” she says. “Now I’ll still work with children, just in a different setting.” Many others are biding their time, scrambling to craft back-up plans while hoping to be recalled. Tony Whitesel, 39, left a branch-manager job at Hertz in 2001 to return to college to become a teacher. In 2006, he started work as a fifth-grade teacher at Great Valley Elementary School in Manteca, Calif. He was laid off in June. Mr. Whitesel says he went into teaching thinking he would have job security. “Ironically, I’m the only one in my family to graduate high school, let alone college, yet I’m the only one not working,” he says. He spent the summer struggling to pay rent, a total of $40,000 in student loans and other living expenses on unemployment benefits and his wife’s salary as an aide for children with learning disabilities; she makes about a third of his old salary. His health insurance will run out at the end of the month, and he says he won’t be able to extend it.
  59. 59. Last week, Mr. Whitesel was told he could fill in for several months in the coming school year for a teacher on sick leave from a different Manteca school. But the substitute post doesn’t offer benefits, so Mr. Whitesel is still looking for nonteaching jobs, hindered by the 15.5% unemployment rate in San Joaquin County, among the nation’s highest. If he finds a job and sees potential for growth, he says he would leave teaching. “I won’t be terribly picky as long as the income is high enough and I have benefits,” he says. View Full Image Aside from losing current teachers, some school officials worry the mounting layoffs could deter students from entering the field. Jack O’Connell, California’s superintendent of public instruction, says generally fewer people apply for teacher credentials when school funding declines. The California Teachers Association estimates 17,000 teachers in the state received pink slips last school year This fall’s class in the teacher-credential program at the University of Redlands School of Education in Redlands, Calif., has about 50 students, about 20 fewer than normal. Dean Robert Denham says prospective students are having a hard time justifying the $15,810 expense for another year of education when they may not find a job after completing the program. Enrollment in the elementary program at California Lutheran University’s School of Education in Thousand Oaks, Calif., is down by one-third from two years ago, says Carol Bartell, the school’s dean. Applications for the master’s-degree-in- teaching program at the University of Virginia’s Curry School of Education in Charlottesville, Va., fell more than 15% this year, the largest one-year drop in school history, says Sandi Cohen, director of teacher education. Graduates also are finding it tougher to find a job. Ms. Cohen says slightly more than 15% of this year’s graduates don’t have jobs, a rare occurrence in other years. So far Teach for America Inc., a nonprofit that places recent college graduates in low-income public schools, has yet to see any impact from the school cuts or interest from laid-off teachers, says Kerci Marcello Stroud, national communications director. The group saw a 42% increase in applications this year and expects to place its largest corps ever this school year: more than 4,000 new teachers, up from 3,700 last year. But the recent news of budget cuts and layoffs on a local basis across the country may eventually limit the pool of new teachers. “Students who are very competitive in the work force are smart enough to realize that there aren’t going to be jobs if the school districts around them are cutting back,” says Tom Carroll, president of the National Commission on Teaching and America’s Future. “They will pursue a different career.”
  60. 60. LAW AND PUBLIC SERVICE PROFESSIONS RR fundable at ESC Crime Scene Technology College Certificate Crime Scene Technology Associate in Science Degree Criminal Justice Technology Associate in Science Degree Firefighter II State Certificate Fire Science Technology Associate in Science Degree Paralegal Studies Associate in Science Degree Public Safety Administration Bachelor of Applied Science Degree Are these promising jobs available in the above positions?
  61. 61. ITAs (aka Rapid Recovery Funding for the “limited access” health programs will only be initiated after the student has been admitted to the specific health program. This step follows the admission application to the Edison State College. Given June 30, 2011 graduation requirement, most interested in these professions are precluded for RR
  62. 62. HEALTH PROFESSIONS, in demand ESC/RR eligible educational paths Cardiovascular Technology Associate in Science Degree Dental Hygiene Associate in Science Degree Emergency Medical Services Associate In Science Degree Emergency Medical Technician (EMT-Basic) State/College Certificate Health Information Management Associate in Science Degree Nursing Associate in Science Degree Nursing Bachelor of Science Degree Paramedic State/College Certificate Radiology Technology Associate in Science Degree Respiratory Care Associate in Science Degree
  63. 63. By INVESTOR'S BUSINESS DAILY | Posted Wednesday, February 11, 2009 4:20 PM PT Stimulus: President Obama, a smart man, says that tax cuts for the wealthy are the main reason we're now in such economic trouble. Someone needs to tell him how utterly — and dangerously — wrong that is.
  64. 64. As history shows, lower taxes, not more government, work best: • The 1920s: When the income tax was established in 1913, the rate was 7%. But it quickly soared, especially for the rich, and by 1918 the top rate was 77%. Unfortunately, coming out of the war the economy was a mess, with prices falling, unemployment soaring and nominal GDP dropping by more than 15% in just one year. From 1921 to 1925, under Presidents Harding and Coolidge, tax rates were slashed to 25%, and GDP rose at an annual rate of 3.4% in the four years after the tax cuts vs. 2% before. All told, GDP swelled more than 50% during the 1920s. All this was undone, however, on a bipartisan basis — first by President Hoover, a Republican, then by the Democrat FDR. Hoover boosted the top income tax rate to 63%. Then, FDR took it to 79%, while also doubling the corporate tax to 24%, imposing a Social Security tax of 2% and raising taxes on stocks and dividends, estates, and "excess" profits. Is it any wonder the economy went nowhere in the 1930s? •
  65. 65. The 1960s: President Kennedy, a Democrat, believed strongly that lower taxes meant higher growth, and he was soon proven right. Before he was assassinated, JFK proposed cutting top tax rates from a punitive 91% to 70%. In 1965, his cuts were enacted under President Johnson by a Democratic Congress. Once again, growth took off, along with private investment. Real GNP, which averaged just 2.4% from 1952 to 1960, expanded at 4.5% during the '60s. The expansion that began in 1961 and ended in 1970 was, at the time, the longest ever.
  66. 66. • The 1980s: President Reagan took over an economy with a 21% prime interest rate, double- digit unemployment and inflation, slowing productivity and flagging economic growth. But he too was a big tax cutter. His 25% across- the-board rate cuts snapped the economy out of its funk, creating the longest peacetime expansion ever at the time. During Reagan's two terms real GDP growth averaged 3.2% compared with 2.8% in the preceding eight years. After stagnating through most of the 1970s, real median family income grew $4,000 under Reagan. Investment boomed, as did the stock market, business creation and innovation. Some 20 million new jobs were created, due to the increased incentives to create jobs
  67. 67. OCTOBER 7, 2009, 2:36 P.M. ET Republican Effort to Unseat Rangel Fails By BRODY MULLINS
  68. 68. WASHINGTON—Democrats defeated an effort by Republicans to remove Rep. Charlie Rangel from his chairmanship of the influential Ways and Means Committee amid a congressional ethics investigation. Democrats blocked the anti-Rangel effort on a procedural motion that would have forced the New York Democrat to step down. The House later voted by a wide margin to refer the matter to the House Ethics Committee, a technical move given that the committee is already reviewing allegations of ethical lapses by Mr. Rangel. But in what could be the first signs of the weakening of support for Mr. Rangel among Democrats, two Democratic lawmakers broke with their party and voted with Republicans on the vote.
  69. 69. The vote was the third time since July 2008 that the House has voted on a measure by Republicans to remove Mr. Rangel. This was the first time that any Democrat had voted with Republicans. The two Democrats who voted with Republicans were Gene Taylor and Travis Childers, both of Mississippi. Mr. Rangel stands accused of several ethical lapses, including failing to disclose income on a rental property in the Dominican Republic on official personal-financial statements filed with Congress. He also used official House letterhead when writing letters asking for donations to an educational center in New York that bears his name
  70. 70. In August, Mr. Rangel amended his official personal financial statements to reveal a half-million dollars in assets he hadn't previously disclosed, as required. Republicans say Mr. Rangel shouldn't be allowed to be chairman of the House committee that controls tax laws when he is accused of violating such laws. Mr. Rangel's predicament poses difficulties for Democrats as they prepare to take up several tax issues in his committee, including repealing the estate tax. The continued drumbeat of bad news also undermines pledges by Congressional Democrats to clean up Washington. The party took control of Congress in 2006 helped in part by Republican corruption scandals. The House Ethics Committee has been looking into whether Mr. Rangel violated ethics rules for at least a year. The congressman himself asked the ethics panel to conduct a review to clear his name.
  71. 71. The resolution, offered by Texas Republican John Carter, called for Mr. Rangel to step down from the chair of the Ways and Means Committee until the House Ethics Committee concluded its investigation.
  72. 72. Read More: Budget & Tax Policy In its yearly report released last week, the Taxpayer Advocate Service notes what the public has known for decades: "America's taxpayers deserve a simpler and less burdensome tax system thaThe national taxpayer advocate recommends that "Congress substantially simplify the Internal Revenue Code." Is anyone on Capitol Hill listening? t enables them to comply with their tax obligations expeditiously." By INVESTOR'S BUSINESS DAILY | Posted Tuesday, January 13, 2009 4:20 PM PT Taxation:
  73. 73. Then there's the expense. In 2006, the tax advocate's report says, corporations and individuals spent $193 billion to comply with the tax code. (Some estimates are far higher. The Tax Foundation, for one, says $265 billion was spent in 2005.) The enormous time, resources and energy eaten up by tax preparation would be of far better use if it were applied to the private economy. Imagine if that $193 billion (or more) were used instead for investment, providing jobs for the equivalent of 3.8 million full-time workers performing productive tasks.
  74. 74. And we haven't even mentioned how the code's bias against savings and investment, the engine of our economy, curbs growth. Americans deserve a tax code that doesn't entrap taxpayers; a Taxpayers Bill of Rights that informs and protects them; a simple, transparent system that doesn't require professional help; a code that isn't constantly shifting (3,250 changes since 2001, more than 500 just in 2008); an arrangement that doesn't encourage overpayments (estimated to be an average $610 per return a decade ago, says the Government Accountability Office); and revenue agents who are more understanding of taxpayers' burdens. The taxpayer advocate has recommended that Congress rip the complexity from the tax code. The reality, though, is lawmakers don't want to change a system that has served them well. As long as they can use the code to hand out favors to supporters and punish political enemies, they will have little interest in change
  75. 75. Can Social Security Get A New Deal? By INVESTOR'S BUSINESS DAILY | Posted Thursday, January 08, 2009 4:20 PM PT Entitlements: In a speech focused on fiscal discipline, the president-elect referred Wednesday to out-of-control Social Security and Medicare spending. Can he tackle these problems while launching a record stimulus?
  76. 76. Social Security and Medicare are headed for the pecuniary ditch, and they could take the U.S. economy down with them. In less than 10 years, Social Security will begin to pay out more in benefits than it takes in in tax revenues. By 2017, it will need $20 billion from taxpayers to meet its obligations. In 2020, Social Security will be underfunded by $96 billion. Five years later, it will owe $280 billion more than it generates in tax revenues, and only 2.4 taxpaying workers will support each retiree, down from the 3.3-to-1 workers-to-retiree ratio of 2007. (In 1945, by comparison, 42 workers existed per beneficiary.) In 2030, the gap swells to a half-trillion dollars, with only two workers per retiree. By 2041, Social Security will be essentially broke, having exhausted its trust fund, those dollars amassed through decades of surplus payroll tax revenues that Congress will have already squandered on general budget expenditures.
  77. 77. Medicare's future is just as bleak. It is already spending more than it is receiving in payroll taxes. Beginning this year through 2017, it will need $342 billion from the federal treasury to cover the hospital insurance costs run up by beneficiaries. Medicare trustees expect the Hospital Insurance Trust Fund to be insolvent by 2019.
  78. 78. In both cases, Washington has three choices to make up the growing gaps between benefits and revenues. It can: • Cut benefits (a possibility Obama hinted at, though it is likely to be politically impossible). • Raise incomes taxes by as much as 150% or payroll taxes significantly (both of which would have devastating economic effects). • Slash general budget spending and use the savings to fund entitlements (almost as politically difficult as cutting benefits). • Employ some combination of the three.
  79. 79. There is a another way, however, at least with Social Security, which is the larger of the two problems. That way is privatization. Obama's party lashes out when even partial privatization is brought up. But taking retirement out of government's hands works. It has worked in Chile. It has worked in Britain. It's worked, as well, in Texas, where in 1981, Galveston County employees voted 78% to 22% to opt out of the Social Security system and put their trust in a private retirement plan. Brazoria and Matagorda counties followed Galveston out of Social Security before Congress outlawed in 1983 the option of leaving Social Security. Now more than 5,000 Texas participants are in a private plan where the rate of return far exceeds that of Social Security's average of 1.25%. The Institute of Policy Innovation, a Texas think tank, reports that a low-income worker making $17,124 a year and retiring at 65 will get $782 per month from Social Security while someone with an identical salary retiring at the same age would receive $1,285 a month from the plan the Texas county workers invest in. A retiree who earned roughly $51,000 a year will get $1,540 monthly from Social Security, $3,846 from the Texas plan. In September, Obama referred to President Bush's "failed privatization scheme" for Social Security, indicating that his administration would never consider private plans. But that was while he was shoring up his party's support. In many ways, Obama the president-elect is acting as if he is not familiar with Obama the candidate. If overhauling entitlements is truly "a central part" of his administration's attempts to tame federal spending, he must be open to ideas beyond cutting benefits, raising taxes and shifty budgeting. Better to be known as the president who saved the nation from an entitlement disaster and economic doom than the president who had the chance and failed.
  80. 80. Corporations • Large-scale organizations that have legal powers, such as the ability to enter into contracts and buy and sell property, separate from their individual owners. • Transnational corporations are large corporations that are headquartered in one country but sell and produce goods and services in many countries.
  81. 81. Competition • An oligopoly exists when several companies overwhelmingly control an entire industry. – Example: The music industry, in which a few giant companies are behind many of the labels and artists known to consumers.
  82. 82. Competition • A shared monopoly exists when four or fewer companies supply 50% or more of a particular market. – Example: U.S. automobile manufacturers (referred to as the “Big Three”) and cereal companies (3 of which control 77% of the market).
  83. 83. Monopoly Capitalism • Corporations gain near monopoly control over production and distribution by acquiring companies that supply raw materials and the companies that are the outlets for their products. • Example: An oil company may hold leases on land where oil is pumped out of the ground, own the plants that convert the oil into gasoline, and own the gas stations that sell the product.
  84. 84. Conglomerates • Combinations of businesses in different commercial areas, all of which are owned by one holding company. • They are often formed by a series of mergers and acquisitions across industries.
  85. 85. Interlocking Corporate Directorates • When members of the board of directors of one corporation sit on the board(s) of other corporations. • The Clayton Antitrust Act of 1914 made it illegal for a person to sit on the boards of directors of two corporations in direct competition. • A person may serve on the board of a bank and the board of a commercial corporation that borrows money from the bank.
  86. 86. 2003 General Motors Board of Directors • On the chair representing each of the directors is the name of another entity each director is connected with, and his or her position with that entity.
  87. 87. Largest Nonfinancial U.S. Transnational Corporations Foreign Corporation Product Revenues (billions) Exxon/Mobil Oil refining 143.0 Chevron Oil refining 65.0 Texaco Ford Motor vehicles 51.7
  88. 88. The Music Industry’s Big Four Company Country Leading Artists U2 Universal Music Group France Jimi Hendrix (MCA, Polygram) Sting Sony BMG Entertainment Avril Lavigne Pearl Japan (RCA, Arista) Jam Carlos Santana
  89. 89. The Music Industry’s Big Four Company Country Leading Artists The Beatles EMI Group (Capitol, EMI, United Pink Floyd Virgin) Kingdom Radiohead Led Zeppelin Warner Music Group Jewel United States (Atlantic, Elektra) Hootie & the Blowfish
  90. 90. Socialism Three distinctive features: 1. Public ownership of the means of production. 2. Pursuit of collective goals. 3. Centralized decision-making.
  91. 91. Symbolic Interactionist Perspective of Economy and Work in the U.S. • According to symbolic interactionists, work is an important source of self-identity. • Job satisfaction refers to people’s attitudes toward their work, based on: – Job responsibilities – Organizational structure – Individual needs and values
  92. 92. Occupations • Categories of jobs that involve similar activities at different work sites. • The primary labor market consists of high paying jobs with good benefits that have some security and possibility of future advancement. • The secondary labor market consists of low-paying jobs with few benefits and very little job security or possibility for future advancement.
  93. 93. Five Characteristics of Professions 1. Abstract, specialized knowledge 2. Autonomy 3. Self regulation 4. Authority 5. Altruism
  94. 94. Professionals • Professionals such as the lawyer shown here are expected to have specialized knowledge of their field based on formal education and prior experience.
  95. 95. SAT Scores by Parents’ Income and Education, 2002
  96. 96. Occupational Segregation • Occupational segregation is clearly visible in personal service industries. • Women and people of color are disproportionately represented in jobs that do not meet societal norms for benefits and security.
  97. 97. Contingent Work • Part-time work, temporary work, or subcontracted work that offers advantages to employers but that can be detrimental to the welfare of workers. • Found in every segment of the work force, including colleges and universities, where tenure-track positions are fewer in number than in the past.
  98. 98. Contingent Work • Hiring contingent workers can increase the profitability of many corporations. • What message does this ad convey to corporate employers?
  99. 99. Subcontracting • An agreement in which a corporation contracts with other firms to provide specialized components, products, or services to the larger corporation.
  100. 100. Major Work Stoppages in the United States, 1960–2004
  101. 101. Labor Unions and Strikes • In recent years, strike activity has diminished as workers fear losing their jobs. • In 2002 only 19 strikes involving more than 1,000 workers were reported. • Number of workers involved in the actions declined from more than 2.5 million in 1971 to 192,000 in 1995.
  102. 102. Protests • Seeking to improve economic and social opportunities for farm workers, the late César Chávez held rallies and engaged in protests in an effort to better the workers’ lives.
  103. 103. Employment For Persons With A Disability • On the average, workers with a disability make 85% (men) and 70% (women) of what coworkers without disabilities earn. • Studies have shown a 30 year decline in the economic condition of persons with disabilities.
  104. 104. Workers With a Disability • Workers with a disability are able to engage in a wide variety of occupations when they are offered the opportunity to do so.