Chapter 14- Capitalism and the Economy

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monetization
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the establishment of a legal currency
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bartering
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allowed a peasant to trade livestock or produce but in context of large cities and wage labor, the need for a monetary system emerged
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Adam Smith
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economist who believed that competition helps maintain a cohesive society, specialization increases productivity & innovation, and using money rather than barter makes trading more efficient
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Georg Simmel
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believed changing from pace work payment to wage labor to a salary would depersonalize exchange, this was a great way to separate public and private spheres and give workers more freedom to enjoy the private, or leisure, sphere
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Karl Marx
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stated that capitalism created alienation in workers including alienation from the products they produced, from the production process, from other workers, and from themselves and their creative tenderness; predicted both that capitalism would ultimately destroy itself and that the working class would rise against the capitalist class, leading to a period first of socialization and then of communism
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salary
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workers are not paid for a direct service but for the sum total of their services
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family wage
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a wage paid to make workers sufficient to support a dependent wife and children
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globalization
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refers to the processes that create and intensify worldwide social exchanges and interdependencies, creates an increase in trade and economic exchanges, and magnifies the division b/w the world’s rich and poor
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multilateral trade agreements
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they don’t result from the negotiations between two nation-states, but rather are the end result of negotiations among multiple players and thus enforce rights, impose sanctions, or encourage business at a regional or worldwide level (e.g. NAFTA & CAFTA)
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champagne-glass distribution
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the unequal, global distribution of income, so named for its shape
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corporations
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have pathological personalities, corporations act like psychos because they show little regard, remorse, or guilt for harming others, they are unable to maintain long-term relationships, they lie all the time and they fail to conform to social norms by obeying the law, corporations are solely self-interested in the relentless pursuit of profits for their shareholders
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oligopoly
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the condition when only a handful of firms exist in a particular market
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unions
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the organization that forms when workers formally unite with the common aim of collective bargaining
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Banking Act of 1933
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the second Glass-Steagall act was signed into law in June of 1933 after a run on Michigan’s banks in January of that year

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