Internal
Links

Top
  Review Notes on   WO 8:  Manufacturing, Mining, & Agriculture
External
Links
  -  Syllabus 
Link
  -  Resources 
Link
 
Outline of WO 8:  Manufacturing, Mining, & Agriculture
  
  INTRODUCTION  
Link
 Industrial Economic Systems  
Link
 Categorization of Industries  
  AGRICULTURE & OTHER RESOURCE BASED INDUSTRIES  
Link
 Agriculture  
Link
 The Agricultural Revolutions   
Link
 Agricultural Technology & Productivity  
Link
 Govt Programs in Ag  
Link
 The US Farm Crisis  
Link
 Farm Labor  
Link
 Forestry  
Link
 History of Forestry  
Link
 Fishing  
Link
 Mining  
Link
 History of Mining  
Link
 SW Va Mining  
Link
 INDUSTRIES  
Link
 The Construction Industry  
Link
 Manufacturing  
Link
 The Manufacturing Labor Force  
Link
            Workplace Control  
Link
                       Workers' Resistance to Control at Work  
Link
            Women & Minorities in Mfr  
Link
 Culture   
Link
            Working Class Culture
 
Link
            HRO Org culture  
Link
            Why the Middle & Working Classes have not Organized  
Link
 Auto Industry  
Link
 Competition in Auto Manufacturing  
 Link
 Globalization of the Auto Industry  
 Link
 The Global Auto Assembly Line  
Link
 Steel  
Link
 The Steel Industry & Globalization  
Link
 Textiles  
Link
 Textile Mills  
Link
 Textile Sweatshops  
Link
 Chemicals  
  FACTORS AFFECTING MFR, MINING, & AG  
Link
 Stagnation, Globalization, & the NWO  
Link
 Econ Policies on Globalization  
Link
 Plant Closing Legislation  
Link
 Shell Corps  
Link
 Mkt Failures  
Link
 Externalities  
Link
 The Declining Middle Class  
Link
 Solutions for Globalization  

 
Internal
Links

Top
 Outline on  Industrial Economic Systems
External
Links
  The Industrial Revolution (IR) is said to have begun in England even though industrial tendencies existed in many countries
 
  The IR spread throughout Europe, North American & eventually to the rest of the world 
 
  The Early Industrial Age was characterized by the use of water power, then steam power to power machines in factories
 
  The secondary sector became the most powerful & important
 
  The industrial sector is the result of the development of technology and social organization in the form of bureaucracy, the factory system, the wage system, etc.
 
  During the industrial age tradition became less influential, & rationality, science, technology, education, etc. became more influential
 
  Large scale govts based on legal rational authority replaces the traditional authority of monarchies
 
  See Also:  Weber on legal rational authority, traditional authority, charisma  
  Industrialization of the economy produced a surplus unlike the world had ever seen
 
  The industrial production of a surplus resulted in a dramatic long term rise in the standard of living w/in the industrialized countries, though it also created more poor people living at a worse level than under feudalism or other economic systems
 
  Dickens noted this in the Tale of Two Cities, which begins, "It was the best of times and it was the worst of times..."
 
  Industrialization made life harder because of the long hours, low wages, & brutal & unsafe working conditions
 
  But w/ the rise of unions, the middle class & a govt. that regulates the functioning of big business people have better diets, more adequate shelter, better health care, & more luxury goods
 
  Because of industrialization, life expectancy has increased dramatically & birth rates have declined dramatically
 
  Industrialization has resulted in greater social equality than feudalism
 
  Industrialization has created greater equality w/in the system in that there is a middle class, yet there remains a lower class who are very poor
 
 
 Industrialization has created greater inequality btwn nations in that the wealth is concentrated in the industrial nations while non industrialized nations are poorer than ever  
 
 See Also:  Globalization  
  Inequality increased during the Early Industrial Age because unions had not yet gained enough power to resist the exploitation of the Robber Barons of big business  
  The wealthy have retained wealth but allowed a middle class to emerge, which gives a historically high level of prosperity to a significant segment of the population, & thereby avoiding revolutions that might deprive them of their wealth  
  The rise of the middle class is accompanied by declining birth rates & increasing democratization  
  Most social theorists believe that the rise of the middle class, declining birth rates, & democratization are all mutually reinforcing & that the demise of any would be seriously dysfunctional for modern society  
  Though it is too early to be certain, the trend toward greater equality may be reversed in the Post Industrial Age   
       See Also:  Post Industrial Age   
  Major industrialized societies of the first world experience few revolutions though many smaller, developing countries do  
  The transition from agricultural to industrial society is often accomplished w/ the blood of revolution & war  
  Farley posits that industrialized nations to to war less often than pre industrialized nation, but notes that industrialized nations have fought WW 1 & 2 which killed more people than all other wars combined, & the cold war resulted in the biggest military build-up the world has ever seen  
  Though it is too early to be certain, it seems democracies rarely go to war w/ democracies; however it is useful to note that pre WW 2 Germany & Italy were democracies that became oligopolies ruled by a single man  
  During the Cold War, the industrialized nations of the US & its allies fought proxy wars w/ the USSR & China & their allies in SE Asia & Africa  
  After 1989 when the Cold War ended, the industrialized nations fought wars w/ partially industrialized nations such as Bosnia, Afghanistan, Iraq, etc. which are largely the result of the collapse of the Cold War world order  
  INDUSTRIAL SHIFTS  
  The shifts in the indl econ sys from the Early Indl Age to the Indl Age to the Post Indl Age represents, one type of indl shift, one of the overall maturing of industry  
  Shifts in the composition of industries & occupations have always occurred, & they always have many effects throughout all the structures of society  
  Many types of shifts occur in industry including shifts related to major technological changes such as that inherent in the rail roads, the automobile, & computerization  
  Indl shifts today have tended to undermine traditional union strongholds  
  Employment has declined in industries & occupation in which unions became strong in the 1930s, such as mining & steel  
  Employment has increased white collar occupations & services industries in which unions have historically been weak  
  The Labor Mvmt has organized aggressively in the areas of employment growth such as restaurants, hotels, teachers, & others, just to maintain membership at current levels  
  Organizing wkrs in the economic growth sectors has only been partially successful in that unionization among white collar wkrs increased from 12% in 1970 to 15% by the mid 90s  
  While new organizing has increased the number of female wkrs from 10 to 12%, today well over half of new union members are female  

 
Internal
Links

Top
 Outline on the  Categorization of Industries
External
Links
  An industry is a branch of economic activity that is devoted to the production of a particular good or service
 
  The good or service may be quite specific; thus we might speak of the fast-food industry, but it can be considered part of the restaurant industry or part of the even larger personal services industry
 
  It is important to know a workers' industry because conditions of competition are unique to an industry because some are in highly competitive growth industries, some are in declining industries w/ low competition, some are subject to foreign competition, some have low competition because of high govt. regulation, some are unregulated, etc.
 
  It is important to know a workers' industry because the nature of production varies by industry, including such types of production as hand labor (craft work to simple labor), electronically automated production, intellectual work, etc.
 
  The industrial process determines which occupations are needed, the working conditions, hazards, skills, training, etc.
 
  It is important to know a workers' industry because workers experience economic consequences from their industry (Sullivan, 1999)
 
  Declining industries are often less productive & provide sporadic, lower-paid work  
  Growing industries are more likely to be productive & provide better wages, benefits, promotion, opportunities & job security
 
  Industries are categorized by surveying workers to determine what they produce
 
  Industries are categorized via the Standard Industrial Classification system (SIC) which utilizes up to a six digit number to classify an industry, which is similar to the Library of Congress number code for classifying books
 
  The highest two digits tells a person what the major industry is, following digits sub-divide the industry
 
  Example:  23 indicates apparel manufacturing; 232 indicates men's & boy's furnishings; 2325 indicates men's & boy's trousers & slacks
 
  SIC codes are used to analyze industries sales, profits, or production
 
  The SIC system provides the Four-Firm Concentration Ratio of sales, profits, production, & other characteristics which is the proportion of each characteristic produced by the top four firms in the industry
 
  The Table on Four-Firm Ratios shows that some industries are highly concentrated & some are not
 

 
Top
  

Table on Four-Firm Ratios
HS0302
Industry
Year
Code
Four-Firm Ratio
Food & Kindred Products
1987
20
  11%
Meat Packing
1992
2011
32
Flour & Other Grains
1992
2041
44
Sugar Cane Refining
1992
2062
87
Chewing Gum
1992
2067
96
The Table on Four-Firm Ratios shows that some industries are highly concentrated & some are not
Census, 1992a:  Table 4, pp. 6-4 & 6-5

 
Internal
Links

Top
 Outline on  Agricultural Societies
External
Links
  Agriculture is the science, art & business directed at the cultivation of crops & raising livestock for sustenance & profit
 
  Agriculture established a 2 way relationship btwn people & the environment, which did not exist as strongly in pre agricultural society
 
  For ag to be successful, while people take from the env, they must also give back to it & nurture it  
  How does ag change env?
No peeking!
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Ag affect the env by the:
-  removal of natural cover
-  drying up wetlands
-  fencing in areas
-  planting a mono-culture, limiting ecological diversity
-  domination of domestic specie
-  use of pesticides, herbicides, fertilizers, & genetic engineering
-  etc.

  
  See Also:  Ag & the Env  
  Env  
  There has been a dramatic decrease in the number of people in ag & food prod
 
  In the 1700s approximately 5 % of the pop lived in urban areas, & approximated 95 % of the pop lived in ag / rural area, & most were farmers  
  In the 2000s approximately 95 % of the pop lives in urban areas, & approximated 5 % of the pop lives in ag / rural area, & not even all of these are farmers  
  Ag has developed into global a economic system & has become more directly linked to other economic sectors, especially manufacturing & finance
 
  When ag first developed, farmers were chastised & derided, attacked & exploited by hunter gatherers & warlords & their clans
 
  The attacks on farmers continues up to modern times & is reflected in US lore about the Old West
 
  Today the ag lifestyle is romanticized & is seen as a vital component of Am values such as the belief that farmers
 
  - adapt harmoniously to the natural world
 
  - naturally sustain community & kin
 
  - embody all other important values:  religion, fairness, common sense, etc.
 
  Agrarian systems shape the:
- culture of the agricultural community
- kind of cultivation practices are utilized
- type of tenure (land holding system) that determines who has access to land
 
  The evolution of all economic systems began w/ the transition from hunter gatherer society to agricultural society
 
  Both of horticulture & pastoralism have developed into non nomadic, non subsistence, i.e. surplus producing forms of ag  
  See Also:  Subsistence Agriculture  
  See Also:  The FOUR Agricultural Revolutions  
  Shifting cultivation or horticulture is a system of agricultural rotation, allowing some areas to replenish each season
 
  Horticulture often uses slash & burn techniques, hand tools, & locations must be changed as the soil is depleted  
  Pastoralism is subsistence agriculture which focuses on breeding & herding animals for food, shelter, clothing
 
  Pastoral societies run small herds, moving from place to place w/ the seasons, & to find fresh forage
 
  True ag, called intensive ag, developed from horticulture & pastoralism, is practiced in permanent locations, uses more sophisticated tools, & if permanent or successful establishes a mutually beneficial relationship w/ the env
 
  Intensive, permanent ag began about 8,000 BC
 
  The plow, as pulled by draft animals was developed circa 4,000 BC  
 
 The plow & other technology allowed for the first production of a surplus of food & goods  
  The ag production of surplus allowed people to perform other tasks such as building village, towns, cities, city states, & small empires  
  The emergence of ag thus allowed for the transition from primary economic relationships to secondary & even some tertiary economic relationships  
  See Also:  The Sectors of the Economy
 
  In ag society, the secondary sector of the economy included the construction of palaces, public buildings, temples, & religious monuments such as the pyramids  
  The production of a surplus also created the first inequality, economic stratification, poverty & wealth as individual characteristics  
  Before ag, poverty & wealth had been social, i.e. tribal qualities in that in H-G society everyone benefited or suffered together  
  In ag society, the means of production is land, & those who own the land obtain most of the wealth  
  Another major transition in ag society is the ability to transfer labor; i.e., labor may be bought & sold, captured & enslaved, & concentrated by thousands of laborers under one man  
  Historically speaking, the concentration of land & labor occurred relatively rapidly, falling under the control of monarchs, patriarchs & other forms of domination  
  The concentration of land & labor in ag systems peaked under the feudal or estate systems in the Middle Ages, but continues to the present in many second & third world countries  
  Estate ag systems still exist in Asia, Africa, Latin America  
  The US southern plantation system was a form of the estate ag system  
  The development of war paralleled the development of ag  
  The development of ag & war systems created empires such as the Roman & Chinese empires  
  See Next:  A Socio Historic Overview:  The Early Empire Era, the Roman Era, etc.  
  See Also:   
  There are THREE types of subsistence agriculture including:  
  Origins of subsistence ag in H-G Society  
Early subsistence ag in Pre Empire Society
  a.  Shifting cultivation or horticulture is a system of agricultural rotation, allowing some areas to replenish each season  
  b.  Intensive agriculture is the agricultural system where small parcels of land are intensively used through intensive use of labor & fertilizer  
  c.  Pastoralism is subsistence agriculture which focuses on breeding & herding animals for food, shelter, clothing  
  The FOUR agricultural revolutions include:  
  a.  Beginnings & spread:           pre 10K bc to 20th C  
  b.  Subsistence to market  
  c.  Industrialization  
  d.  Globalization  

 
Internal
Links

Top
 Outline on the Four Agricultural Revolutions
External
Links
  Like any social system, agriculture has evolved
 
  To an extent, viewing agriculture as going through revolutions is misleading because agriculture has changed but there are still vestiges of all phases  
  Overall, agriculture has evolved from predominantly subsistence practices to predominantly capital intensive, market oriented practices
 
  There have been FOUR Agricultural Revolutions or phases
 
  History in general & the development of ag in particular have proceeded  w/ alternating cycles of long periods of gradual change & short explosive periods of radical change  
  a.  The Beginnings & Spread of Ag:           pre 10K bc to 1900s  
  Agriculture began w/ simple tools such as a planting stick  
  The wood plow was introduced shortly before the birth of Christ  
 
 b.  Subsistence Ag to Market Ag      1650 to present  
  highly labor intensive until mechanization began in mid 1800s  
 
 c.   The Industrialization of Ag  
  The metal plow lead the industrialization of ag  
 
 d.  The Globalization of Ag  
Link
 Chart on the Qualities of the FOUR Agricultural Revolutions
 

 
Top
  

Chart on the FOUR Qualities of Agricultural Revolutions
Knox
Top
1st Ag Rev: 
Beginnings & Spread
2nd Ag Rev:  Subsistence to Market
3rd Ag Rev:  Industrialization
4th Ag Rev: 
Globalization
Time span
circa pre 10K BC
to 20th C
circa 1650 
to present
 circa 1928 
to present
circa late 1970s 
to present
Types of ag
Subsistence
Commercial development in the frame of family farms
Commercial development in the frame of corporations
Commercial development in the frame of global corporations
Climax
Neolithic to
Mid Ages in Europe
18th C England
19th - 20th C 
European colonies
Present day
Present day
Location
Europe
SE Asia
W Europe
No Am
USSR
E Europe
No Am 
Europe
Almost entire planet
Innovation
Subsistence
& domestic
food production
Selection & taming of  species
Surplus production technology & 
financial 
returns
Lowest cost
production 
methods
Establish world
markets &
patterns of
consumption
Conditions 
of change
Replaces H-G
Establishes mercantilist outlook
Industrial Revolution ag demands met
Establish corporate & collective ag
& the Ag Ind Complex
(AIC)
AIC goes global
Effect on 
society
Ag society proliferates
Ag develops as a separate area of economy
Family farm becomes the norm
Focus on profit replaces ag way of life
Globalization establishes profit at the expense of the local economy & environment

 
Internal
Links

Top
 Outline on Ag Technology & Productivity
External
Links
 
 Ag technology & the resulting productivity has increased steadily as ag has developed through it's Four Ag Revolutions
 
 
 See Also:  Ag Revolutions  
 
 Ag production, even in the industrialized world, utilizes some hand labor
 
 
 Hand labor has been reduced dramatically in the industrialized world, but for much of the world, farmers are still utilizing techniques that are 1000s of yrs old
 
 
 Industrial, commercial ag utilizes machinery, fertilizer, & improved varieties of seeds
 
 
 Because of increased efficiency, fewer people are required to produce ag goods, & they are producing ever greater levels of goods
 
 
 The increased efficiency & greater production has contributed to the chronic treadmill of falling farm prices
 
  Thus, in many ways technological advances in ag may come to be a curse to small farmers  
  Parallel to this, technology is often a curse to the workers in an industry because it results in the destruction of jobs & layoffs  
 
 Technology has reduced the labor needed on farms, but in the first world this has created falling prices & farm consolidation
 
 
 The US farm population has fallen from 97% of the US population to 3% today
 
 
 The US farm population provides less than 1% of the US income
 
 
 Rising productivity means that it takes more acres to make a living because profit per acre declines
 
 
 Thus, small & family farms decline while big, corporate farms grow
 
  Because of high fixed costs in land & equipment, farmers must continue to produce even at a loss  
  Producing at a loss builds debt which may eventually overwhelm the farmer  
 
 Black owned farms in the South often have higher yields per acre than commercial farms, but many are so small that they cannot produce a family income
 
 
 As a result of the lower profit per acre, the amount of farmland owned by Blacks in the South is falling
 
  Small farms become uncompetitive because they cannot take advantage of the economies of scale of large equipment, seed, & fertilizer  
  In 1985, the average cost of growing corn was $2.42 while the price was $2.35  shaking out process:  still occurring:  death of fam farm  
  In 1998 the average cost of growing corn was $2.42 & the average price was $1.95, 24% less than the average cost  
  The below cost average production cost that occurred in recent decades created a shaking out process that is still occurring & is causing the death of the family farm   
  In 1975 there were 2.8 mm farms; in 1986 there were 2.2 mm farms; in 2000 there were 1.9 mm farms  
  The consolidation of the number of farms has resulted in production of 75% of the nation's food supply by 50,000 farms  
  In recent decades, only below average cost farmers survived, & they often bought out the rest  
  This is the natural process of mkt consolidation that occurs under capitalism  
 
 The trend of centralization resulting from improved technology & increased productivity has been reversed in the former Soviet satellite nations of Eastern Europe
 
 
 In Hungary, which had a highly collectivized ag systems of large cooperates, small privately owned farms are now more productive
 
 
 In the US, small farms often develop a mkt niche by producing specialty products that do not compete directly w/ those produced on large farms
 
 
 Examples of niche ag products include organic foods, hormone free foods, genetically unaltered foods, unique fruits & vegetables, etc.
 
 
 The squeezing out of small farmers due to technology occurs because the smaller producers often cannot afford the expensive new technology  
 
 Technological advances in ag that require large investments of capital include larger tractors, combines, etc. which require large swaths to land to operate & to pay for them  
   Technological advances in ag that require large investments of capital include such exotic technologies as growth hormones & antibiotics in animal feed  
  Tech & land in ag is a fixed cost in that it does not change regardless of how much production is attempted nor how much is harvested  
  Fixed costs average more than 50% of total costs in ag  
  Because fixed costs must always be paid, farmers must produce even when prices are low  
  When prices are low, farmers often incur debt which then must be added to the financing of the large capital expenditures for tech & land  
  Internationally, it can be seen that there must be technological fit btwn a technology & it's industrial & social environment  
  Technological fit includes such factors as whether there is an infrastructure to support the technology, whether people are educated in it's proper use, it's compatibility w/ other technologies, etc.  
  An example of inappropriate technological fit can be seen in the importation of US hogs to Haiti in 1984  
  US hogs were resistant to African swine fever which was decimating the Haitian swine population & might spread to the US  
  However, US hogs were more domesticated & could not scavenge as the Haitian pigs did; furthermore, US pigs had shorter legs & could not walk to mkt as Haitian pigs did (Oppenheimer, 1986)  

 
Internal
Links

Top
 Outline on  Govt Programs in Ag
External
Links
 
 Farmers call Federal Price Supports & similar programs, "government programs"
 
 
 Fed farm policy attempts to slow the decline of the small farmer through price controls, crop insurance, & set asides, but the effect has been to subsidize large corporate farms more than small family farms
 
  Low prices have historically resulted from farming's own success; i.e., US farmers have produced so much that they drove prices down  
 
 See Also:  Ag Technology & Productivity
 
 
 A farmer must enroll in set aside programs & crop insurance if he or she wishes to participate, but price controls affect all farmers
 
 
 In set aside programs, if a farmer participates, they must grow what govt says, & could not grow what they wanted
 
 
 The farmer must set aside land & not grow anything except for a cover crop
 
  Similar to the set aside program is the Conservation Reserve Program ( CRP )  
  The CRP pays farmers to keep 39 mm acres of highly erodible land in wildlife habitat  
  The CRP succeeded in slowing the decline of the family farm until the 1970s when world competition grew dramatically as a result of price supports  
  This lowered average price which resulted from intl competition put farmers back on treadmill or trying to raise as much as they could, which drove down prices, which necessitated more production, etc.   
 
 If set asides fail to regulate the mkt, the govt sets price ceilings & floors on corn, wheat, cotton, rice, feed grain, & some other ag commodities
 
 
 Price support began after Great Depression (1929) & dust bowl of the 1930s, fixing a minimum, floor price
 
  Later, price ceilings were added to price supports, creating total price control of ag commodities  
  The govt guarantees a price for nearly all farm commodities through price supports  
 
 Price supports put a floor on farm commodity prices, ensuring a minimum price
 
 
 The minimum, floor price is typically set so low that only the large farmers can produce at such a cost as to make any profit from the floor price
 
 
 The if crop prices fall too low, the govt will buy up the commodity & store it, driving up the prices, creating a price floor
 
  If crop prices get too high, the govt will sell the commodity in the mkt, driving the prices down, creating a price ceiling  
 
 In addition to the set asides & price support, the Fed Govt operates a crop insurance program
 
 
 Crop insurance works just like any other insurance program expect that it is subsidized, & it is run by the govt
 
 
 If a farmer buys the insurance, & if their crops go bad for almost any reason such as drought, hail, floods, insects, etc., then the govt will pay the farmer a minimal refund
 
  The govt programs in ag underwent a major revision in 1996  
 
 The 1996 Freedom to Farm Bill was designed to phase out govt programs in ag in order to let the mkt dictate losses & profits
 
  Under the Freedom to Farm Bill:  
 
 - farmers could plant whatever they want
 
 
 - there were no set aside programs
 
 
 - the Conservation Program was retained  
 
 - price controls were set on a schedule of declining subsidies  
  - dairy, sugar, peanuts, & a few other dairy commodities were unaffected; i.e., set asides, price supports, crop insurance remain extensive as they were in the past  
  Dairy, sugar, & peanut production is among the most concentrated in ag, controlled by large corps, w/ the strongest lobbies  
  Since the 1970s, prices have been affected by world competition  
  In the 1960s, many US corps went into sugar production in central America, resulting in falling prices in the 1970s  
  Sugar production was almost eliminated in CO, HI, & LA until govt ag programs were applied to sugar production  
  US govt ag programs for sugar decimated the sugar dependent economies of Cuba, the Philippines, & so on  
  Price supports were generally seen as effective in the US, but in the 1970s, world competition became so strong that govt ag programs became very expensive, & the govt refused to fully fund them, & therefore prices fell, & many small farmers were eliminated  
  In addition to low prices, high oil prices & high interest prices drove up costs  
  The combination of low ag prices, high oil prices, & high interest rates created what is now known as the Farm Crisis  
  See Also:  The Farm Crisis  
  In response to the Farm Crisis & its farm foreclosures, members of farm families have taken more jobs from off the farm to support their farming  
  Typically jobs available to farmers in ag areas do not pay very well & women are often able to earn more off the farm than are the men  
  Another effect of the govt ag programs is to support world prices, forcing foreign govts to support their farms as we do, encouraging over production around the world (Amstutz, 1984)  
  Another effect of the govt ag programs is highly variable prices which are dependent on volatile world harvest levels
 
  High unemployment in the 80s, early 90s, & now the early 00s has limited the ability of farmers to find work off the farm  
  Families farms are finding it increasingly difficult to pass the farm from generation to generation  

 
Internal
Links
 

Top
 Outline on the  US Farm Crisis
External
Links
  THE ORIGINS OF THE FARM CRISIS GO BACK TO THE NEW DEAL, FARM SUPPORT PROGRAMS, BANKING PRACTICES, & THE OPEC OIL CRISIS  
  The role of govt in ag is such that the farm economy is one of most controlled in US   
  Since FDR, the US govt 
-  limits prod by paying farmers not to grow crops 
-  sets price ceilings & floors 
-  buys & sells crops to attain these price controls 
-  sells crop insurance 		  
  The farm crisis resulted in the call for return to free mkt   
  THE GOVT PASSED THE FARM BILL IN THE 90s TO FADE OUT GOVT REGS OF FARMING, BUT THE REGS / SUPPORTS ARE STILL IN PLACE  
  The govt passed the farm bill in 90s to fade out govt regulation  
  But minor crises have periodically returned, so Congress has passed several one time supplements   
  See Also:  Govt Programs in Ag  
  THE 70s ARE A PERIOD OF AG ECON BOOM, ENDING IN THE FARM CRISIS  
  In the early 70's, for first time since 30s, govt controlled prices of commodities went up 
 
  The increase of prices for ag commodities was result of govt grain sales to SU, China, etc. to bolster US position in arms & other deals   
  During the 70s ag boom, corn went from  $1.25  to 1.90 per bu 
 
  The farm crisis is also the result of industrialization of ag because mechanization means there is less need for people in farming   
  The use of technology & mechanization in ag results in farmers needing more capital investment to be able to upgrade to the latest tech   
  The trend of increasing capital investment has been going on since mechanization & began at the turn of century   
  The farm crisis has its roots in globalization in the 70s in that:   
  -  OPEC increased oil prices 4 times over, creating an oil crisis   
  -  OPEC became cash rich & put $$ in Am banks   
  -  because of the OPEC cash surplus, banks became flush w/ cash, so offered cheap loans to farmers   
  -  cheap loans resulting from the OPEC cash surplus drove up price of land   
  Most loans were made w/ unique terms for land, w/ variable rates, recallable, joint liability, balloon payments, etc.
 
  In 1979 the Federal Reserve Bank significantly increased interest rates 
 
  The cost of oil drives up farm costs:  diesel, fertilizer, herbicide, pesticide, etc.   
  While prices of ag production supplies such as diesel rose, the govt does not allow the prices of ag products such as corn rise 
 
  Grain prices decline as result of the: 
 
  -  econ development in So Am & other regions: World Bank, IMF, etc.   
  -  the US boycott of grain sales to SU by Carter as a Cold War tactic   
  See Also:  The Green Revolution   
  BANKRUPTCY FOR FARMERS IS UNIQUE BECAUSE THEY CAN LOSE EVERYTHING   
  As land values fell, Farmers could not liquidate & pay off debt 
 
  Many farmers had to sell several acreages to pay off one acreage, & eventually lost it all   
  But farm bankruptcy is unique in that it allows for the sale of all personal possessions 
 
  Normal bankruptcy allows retention of necessities which often includes 1 home, 1 car, some cash, & normal personal possessions   
  THE EFFECTS OF THE CRISIS DECIMATED THE FAMILY FARM & THE RURAL LIFESTYLE   
  The Farm Crisis hit: 
-  mid sized farmers 
-  farmers w/ income of $40,000 to $200,00 in sales 
-  young farmers needing to go into debt 
-  farmers in IL, IA, KS, MI, MO, NE, ND, SD 
 
  The crisis sank many small towns based on farm econ, thus affecting schools, churches, etc.   
Link
 Example:  Lexington, NE 
 
Link
 Example:  Yankton, SD 
 
  European farmers were also in crisis   
  On March 4, 1985 farmers staged one of the first protests of the Farm Crisis 
 
  Farmers marched on Washington DC 7 drove a tractor convoy down Penn Ave
 
  In their protest, the farmers placed 250 white crosses on Washington Mall representing the number of farmers bankrupting each day 
 
  On May 7, 1985 many stars supported farmers including Jessica Lange, Jane Fonda, Sissy Spacek who spoke before US House of Rep & all had movies about farm crisis  
  Farm Aid Concerts began on September 22, 1985 when Willie Nelson began a series of Farm Aid Concerts to raise awareness about loss of family farm & raise $$ for farmers   
  AS FAMILY FARMS FADED, CORP FARMS GREW 
 
  While the corp farm will inevitably be more efficient, it is based on poor environmental practices & is more subject to control, control of food   
  Countries that have experienced food shortages believe that family farm provide a more secure food supply for THREE reasons, in that family farms:   
  a.  are not limited by profitability, they will raise food regardless of the profitability 
 
  b.  cannot manipulate supply or price 
 
  c.  are decentralized & therefore less susceptible to system collapse, diseases, etc.   
  -  Supplement:  USA Today:  Will family farms die like Mom & Pop stores? 
Link
  Europe, Japan, & China support family farms   
  SU/ Russia, US support the corporate farm   

 
Top
  
Lexington, NE Farm Crisis
 

Farms failing
Community tension & conflict
Meat packing identified as alternative
State tax abatements & other incentives to IBP, a giant food conglomerate
IBP opened in '92 w/ 2000 wkrs
Most wkrs are immigrants, actively recruited by the corp: Mexican & Central Am 
This created social & econ problems
Ethnic tension & resentment
Housing crunch
Had to build homeless shelter
Developed highest crime rate in NE


 
Top
  
Yankton, SD Farm Crisis
 

60s:  Young man decides to start farming
Buys land, expands slowly over 10 yrs adding 80 acres every few yrs
Land costs, ag costs, crop prices relatively stable
70s:  bankers come around w/ cheap loans
Farm advisors claim:  increase your acreage or die
Mid age man quadruples the size of his farm to 3000 ac
Prices fall, banks call some loans
Prices of land falls so cannot sell land to pay debt
Goes bankrupt
Ends up w/ same acreage as before expansion but in debt greater than the value of the land


 
Internal
Links

Top
 Outline on  Farm Labor
External
Links
  FARM LABOR IS LOW PAID, LARGELY IMMIGRANTS, & VITAL FOR OUR AGRICULTURAL INDUSTRIAL SYSTEM   
  About 3 mm people work as hired farm labor at some time during the year 
 
  There are over 2.5 mm farmers & unpaid family members who work on farms 
 
  About .5 mm farm workers work full time & another .5 mm are long term seasonal workers who work at least 2 to 3 mos. a yr 
 
  Besides the full time & seasonal farm workers, the remainder, primarily students & housewives or non farms workers who take occasional job on the farm 
 
  Full time farm workers earn about $9,000 a yr 
Long term seasonal workers earn about $5,000 a yr 
Short term seasonal workers earn about $,2000 a yr 
 
  FARM LABOR IS UTILIZED IN PRODUCE GROWING STATES BY LARGE CORP FARMS, & IS EXCLUDED  FROM MOST LABOR LAWS  
  Farm labor is concentrated on the largest farms in that less than 2% of farms hire over 1/3 of all labor 
 
  Farm labor is regionally concentrated in CA, TX, & FL 
 
  Most of the farm laborers in CA, TX, & FL are immigrants from Mexico   
  Most farm laborers do not depend on farm labor for their sole source of income in that most farm laborers hold other jobs off the farm 
 
  Farm workers are excluded from laws allowing them to organize into unions & engage in collective bargaining 
 
  Farm labor is not regulated under most federal law including minimum wage pay, OSHA regs, and others 
 
  Cesar Chavez championed the cause of farm workers from the 1960s until his death in 1993 by organizing farm workers 
 
  The union called the United Farm Workers was founded by Chavez and continue to work for farm laborers 
 
  See Also:  The UFW   
  MECHANIZATION HAS ONLY BEGUN TO THREATEN FARM LABOR, BUT CHEMICAL EXPOSURE IS A CHRONIC & SERIOUS HAZARD   
  The ag workforce is relatively stable because mechanization has not advanced into tending fruits & many veggies 
 
  Important issues for farm laborers include their exposure to farm chemicals because in most cases, safety warnings are ignored 
 

 
Internal
Links

Top
 Outline on  Forestry
External
Links
  Forestry, falling trees, bucking trees skidding trees, etc. takes a lot of skill
 
  The labor force in forestry has continually & dramatically shrunk even ask production has dramatically increased  
  Mechanization in harvesting pulpwood has increased, as has the amount of pulpwood harvested
 
  The mechanization of pulpwood harvesting has decreased the amount of labor required in wood products production & has had a dramatic effect on the environment   
  Pulpwood harvesting utilizes all sizes of trees, including small trees, leaving the forest landscape completely barren  
  In pulpwood harvesting, operators sit in tractor like machines which have arms that can grab & cut trees  
  Wood harvesters cut 150 to 180 trees per hour  
  Mechanization in the mills has also increased dramatically resulting in a parallel dramatic decrease of labor
 
  Mill mechanization has resulted in the closure of many mills in the East & the West   
In the West, many mills were the lifeblood of small western, mountain towns such as Cascade, McCall, New Meadows, & Council ID & thus their closure necessitated the difficult transition to new economic sectors such as tourism  
  Despite mechanization in forestry, the accident rate continues to increase
 
  Logging has highest fatality rate of any industry
 
  Much logging is seasonal
 
  Forestry is susceptible to its own business cycle which follows the volatile construction & home building industry resulting in many workers living a life of boom or bust
 
  Forestry is being strongly influenced by the forces of globalization in that the US ships many whole trees & some lumber to Japan  
  Forestry is being strongly influenced by the forces of globalization in that the importation, or lack of importation, which fluctuates to a high degree, has a destabilizing effect on US production  

 
Internal
Links

Top
 Outline on the History of Forestry
External
Links
  -  Project:  Forestry Solutions
Link
  Forestry was first practiced in prehistorical times
 
  Prehistorically, forests covered 60 % of the Earth w/ a mixture of young, medium, & mature trees of a wide variety of species
 
  Since about 11,000 yrs ago, large areas have been cleared of forests for farms & cities
 
  It is now understood that deforestation became a problem even in the landscape surrounding the hearths of civilization & the Early Empire Era civilizations including the Middle East
 
  In the Middle Ages, deforestation was a problem in Europe
 
  During the 1800s & 1900s, great expanses of forest were eliminated because of logging & industrial pollution
 
  Today, forests cover only 30 % of the Earth's area & the areas of forest coverage continues to drop
 
  In No. Am. in the 1600s, forest covered most of the land from the Atlantic coast to the Mississippi River & nearly 40% of the land north of Mexico from the Rocky Mtns to the Pacific coast
 
  Today, only 30% of the land is is forested in the US
 
  Logging began in the east in the US & followed the European's expansion to the West
 
  Most forested areas were decimated
 
  As mining began, the JNF & the surrounding area was totally clear cut for timber for the cities, for mine timbers, for railroad ties, for fuel for home & industry, etc.
 
  The govt purchased the land for the JNF on the cheap because of the degradation due to logging
 
  After extensive logging in the East & Southeast, unregulated logging moves west to the upper mid-west in WI, MI, etc. & eventually to the far West
 
  The effects of early logging include the degradation of
 
  - watersheds, including the streams & lakes which were water source for cities
 
  - wildlife
 
  - wildlife habitat  
  - flora
 
 
 Watershed degradation which results from logging or mining makes areas downstream susceptible to flash flooding  
  Logged areas were not reforested & so, for decades, they became brush patches & even today, many areas are not in their "natural state"  
  Economies exhibited "boom town" aspects because of the logging rush which was inevitably followed by the logging bust  
  See Also:  Forestry as an environmental problem   
  Forest land today makes up about one third or 730 mm acres of the total US land mass, while about wo thirds of that or 480 mm acres is considered timber land  
  796 mm acres in Canada are forested  
  In many western states the % of Fed land ownership is above 60% -- some above 90% while in many midwestern states, there is no fed land, & in many eastern & southern states, Fed ownership is less than 30%   
Link
 The Table on the Ownership of US Land shows that the the majority of land in the US is owned by private, non industrialized owners  
Link
 The Table on the Leading Countries in Forest Products / Yr in 1989 shows that the US harvests the most timber even though it does not have the most forest  
Link
 The Table on No Am Forest Products / Yr in 1989 shows that 11 regions produce 60% of the harvest  

 
Top
  
Table on the Ownership of US Land

Ownership % of lower 48 land mass
Private, non industrial owners 58
Feds 20
Forest Industry 14
States 7
Tribes 1
The Table on the Ownership of US land shows that the the majority of land in the US is owned by private, non industrialized owners

 
Top
  
Table on the Leading Countries in Forest Products / Yr in 1989

Country Forest Products / Yr
US 586.6 mm cu yds
Russia 465.2 
China 344.5
India 320.5
Brazil 295.5
Canada 224.1
Indonesia 194.9
Nigeria 124.1
Sweden 69.8
Tanzania 59.6
The Table on the Leading Countries in Forest Products / Yr in 1989 shows that the US harvests the most timber even though it does not have the most forest

 
Top
  
Table on No Am Forest Products / Yr in 1989

Region Production Level
BC 97.5 mm cu yds
OR 68.3
GE 53.6
WA 52.5
Quebec 47.8
AL 38.8
Ontario 36.8
MS 33.0
CA 31.8
LA 24.5
Total 484.6 or 60%
The Table on No Am Forest Products / Yr in 1989 shows that 11 regions produce 60% of the harvest

 
Internal
Links

Top
 Outline on the   Fishing Industry
External
Links
  Ocean weather & the use of heavy equipment makes modern fishing very dangerous
 
  Fish yields twice the amount of food as poultry and half as much as other sources, such as cattle & pigs, combined
 
  Fishing is organized around independently owned boats in which each member earns a share
 
  Btwn 1945 & 2000, the catch expanded 5% annually, significantly faster than the 2.5% annual growth of cereals & the 2% growth in meat
 
  Canada is the largest exporter of fish w/ a catch of 2 mm tons, most of which is exported
 
  The US catch is about 7 mm, w/ most of this consumed domestically
 
  Japan has the largest catch of 12 mm tons, or 15% of the world total, & imports the largest amount 
 
  In the 1970s Peru had the largest catch in the work, based mostly on anchovies which were used to produce powdered fish protein & oil which is used as a supplement for feed
 
  Due to climatic changes & over fishing, the harvest of anchovies has dwindled to a fraction of what it was
 
  At one time, experts thought the ocean would feed the world, but because of over fishing, growth is only about 1%, 
 
  Fish farming, however, is increasing much more rapidly than is ocean fishing 
 
  The UN Food & Ag Org estimates the oceans could produce 445 mm tons a yr, about 4 times current production
 
  While fishing nets get ever larger, it is not as economical to fish far off the coast
 
  Fish farming, aka aquaculture, raised 9 mm tons of fish in 1983 & is about at that level in 2000 w/ China raising 5 mm of those  
  China estimates that it has the potential to raise 40 mm tons of fish a yr from aquaculture  
  Fishing occurs in boats w/ only 2 people, up to ships having more than 20 crew members  
  On fishing boats, the fishermen employ consensual decision making because of the dangerous environment to which they are all exposed to equal risk  
  This method of mgt is preferable to wage systems because of the need for cooperation & teamwork to secure the catch & fact the dangers of the sea  
  As is the case in most industries, fishing now require larger investments of capital forcing out smaller fishermen, & attracting absentee owners  
  Distant ownership & mgt erodes the cooperative & efficient operation of the fishing industry   
  Risks are minimized when people in the boat make consensual decisions (Maril, 1983)  
  When decisions are made by an owner on shore or according to bureaucratic rules, lost opportunities & dangerous situations are more likely to occur (Doeringer, Moss, and Terkla, 1986)  
  Unlike corps, fishing families are less likely to quit fishing when profits shrink  
  No. Ireland, Scandinavians, & some other nations have extended govt backed credit to fishermen creating a circle of debt which keeps small fishing businesses alive but addicted to debt  

 
Internal
Links

Top
 Outline on the  Mining Industry
External
Links
  Introduction
Coal mining is done both in the East & in the West
Hard rock mining is scattered throughout the US
Mining has had significant envl problems
We are now struggling to prevent more problems & to correct the problems of the past		  
 
 There are two basic types of mining, deep mining & strip mining, but mining for each mineral is a different process
 
  Mining methods include surface mining, underground mining, & hydraulic mining  
 
 Mountain top removal is a type of strip mining where the top of a mountain is removed & put in the mountain's surrounding valleys, & generally not put back or reclaimed as is done w/ conventional strip mining
 
  a.  Surface mining methods include:
- Dredging
- Open pit mining
- Strip mining & mountain top removal
- Quarrying		  
  b.  Underground mining methods include: 
- Room & polar mining
- Longwall mining
- Sublevel stoping
- Cut and fill mining
- Block caving
- Sublevel caving		  
  c.  Hydraulic mining is generally done above ground, & may include placer mining, but may also be done underground  
 
 Mining is dangerous & demanding work which generates a sense of purpose & collective identity
 
 
 Miners have a strong occupational culture
 
 
 Mining is an high reliability organization ( HRO ) & has an HRO org culture which is built on the shared group responsibility for the work below ground & the relatively isolated work community
 
  See Also:  HRO Org Culture  
 
 See Also:  The History of Mining  
 
 Miners have been united by a powerful union, the UMWA, but today, fewer miners are organized
 
 
 See Also:  The UMWA  
 
 Since their early days, neither Am miners nor the Am Labor Mvmt has had a pivotal role in national politics, including envl issues, as is the case w/ British miners, & other European workers
 
  British miners & European workers are even more politically influential than the Am workforce & Labor Mvmt because they have always been better organized & formed a political party  
 
 The political weakness of Am miners is the result their geographic isolation in Appalachia, which is the center of Am coal mining, and it the West which is the center of the metal mining industry
 
 
 The chronically depressed, semi rural regions of mining are a weak springboard for collective action on miners' demands
 
  Mining has traditionally resulted in economically depressed areas  
  Mining is subject to its own business cycle, independent of the cycle of the general econ  
 
 Miners have always kept their ties to the rural econ, & during the economic downturns of the mining industry, miners have reverted to rural & ag pursuits such as gardening, hunting, & raising chickens & eggs, 
 
 
 The availability of these alternatives has, to some extent, precluded the necessity of organizing to demand redress for problems in the industry (Gaventa, 1980)
 
  Absentee ownership has developed the coal industry through absentee capital investment and export oriented production creating economic colonies in coal regions  
  The effects of absentee ownership include:
- a lack of local commitment to labor
- a lack of investment in social infrastructure
- a lack of concern for the env
- a lack of concern for local econ development		  
  Coal firms are are absentee landowners & so have not supported the local area  
  The owners of the coalfields pay little tax in comparison to typical landowners because a coal severance tax is paid in lieu of real estate taxes & the severance tax is negligible compared to real estate taxes  
  Typically local govts are financed primarily by real estate taxes & because of the lack of real estate taxes paid by coal firms, the counties have relatively little income  
 
 The development of coal mining has had a historic impact on energy use & a parallel effect on the env
 
 
 At one time we used mostly wood for energy, next came coal, & now coal & oil & others
 
 
 We use mostly nonrenewable resources including fossil fuels & nuclear fission in the following proportions:
35%  oil
24%  coal
18%  gas
  6%  hydro
  5%  nuclear fission
12%  biomass
11%  other
 
  Renewable energy sources include hydroelectric, solar, wind, geothermal, (and theoretically nuclear fusion)  
  Peripheral nations have 4 times the population of the core nations but uses only 1/3 the energy as the core, but are expected to surpass the core in energy use by 2020  

 
Internal
Links

Top
 Outline on a  Socio Historical Analysis of Mining
External
Links
  -  Supplement:  Arch Coal eyes selling area coal mines
Link
  The first known mining occurred around 6,000 BC when miners dug pits & tunnels to get flint for tools & weapons
 
  Around 3,500 BC, the mining of tin & copper for bronze became common around the hearth areas of civilization
 
  The ancient Romans were probably the 1st people to see that mining could make a nation rich through mining of precious stones, precious metals, & commercial metals such at tin, marble, etc.
 
  The Romans took over the mines of every nation they conquered
 
  There were few advances in mining until 1400s when coal & iron were mined in Europe
 
  The Incas & others in So Am mined for metal & precious stones & metals
 
  Mining began in US in the 1600s
 
  Early on in the US, the French mined lead & zinc in Mississippi River valley
 
  In the mid 1800s, large amounts of coal were mined in PN & thousands followed the gold rush to the West & CA  
  Coal deposits cover about 50,000 sq mi in Appalachia which were discovered by engineers during the Civil War
 
  Coal mining in Appalachia decreased the number of farms as farm land was deep & strip mined
 
  The number of farms in Appalachia has decreased because mining destroyed the farm land
1925  --   2,091 farms
1950  --   1,749 farms
1935  --   89,710 acres considered farmland
1950  --   acreage drops to 67,742
 
  Coal mining has decreased the average size of farms in Appalachia
 
  1860  -- Four years after formation of Wise County, the average size of a farm was 432 acres
1900-- Average had dropped to 92 acres
1950-- Average decreases to 38 acres
 
  Early coal mining caused the population to increase in Appalachia
1860  -- 4,508 people lived in Wise County
1900-- Over 19,000 people and close to 21 corporations engaged in coal producing business
1902-- Wise County became the leader in coal production with 2.5 million tons
 
 
 After the coal mining boom, the population decreased in Appalachia
 
 
 Miners were powerful force in national politics since they were a powerful force in the early & contemporary Labor Mvmt in the form of the UMWA  
  The importance of mining in the econ system also made mining politically powerful  
 
 See Also:  The UMWA  
 
 Miners & the UMWA were instrumental in establishing an even handed govt approach to trade unions
 
 
 In the coal strike of 1902 & 1903, President Theodore Roosevelt threatened to nationalize the industry & have the army mine the coal unless the owners & workers bargained collectively
 
  Teddy Roosevelt took neutral stand in union battle of 1902-3  
 
 See Also:  Landmark Strikes  
 
 The development of coal mining technology decreased the number of jobs while simultaneously increased environmental effects
 
 
 Jobs in coal decreased while it's environmental impact increased because of more mechanized production tech, increased job safety, a decline in the coal supply, & increased environmental controls
 
  The steady mechanization of mining tech has resulted in a steady decline in the mining workforce  
  The Clean Air Act also increased decline while industry technologically adjusted to it  
  At first, industry substituted oil & gas for coal, resulting in a decline in the demand for coal, but over time, as clean coal tech developed, & the general demand for energy increased, the demand for coal returned to previous levels & has since increased  

 
Internal
Links

Top
 Outline on  SW Va Mining
External
Links
  -  Video:  Mining 
Link
  -  Project:  Your Experience of Mining 
Link
  MINING DEMOGRAPHICS   
  There are approximately 4,400 workers in Wise county employed directly in the mining industry 
 
  The mining industry generates over $134 mm in wages & salaries in Wise 
 
  SW VA has 44 mineable seams throughout seven counties including Lee, Russell, Wise, Buchanan, etc. 
 
  Wise County produces 28% of all VA coal 
 
  Wise County has 46 underground mines 
 
  There are 51 surface mines in SW VA in the 1990s   
  VA has high quality, low sulfur & ash content coal   
  The Powell River Project is a cooperative project for w/ industry, govt & ed which is leading the reclamation efforts through the planting of pine trees, cattle grazing, grass & legume planting   
  The money for reclamation is paid by the coal industry   
  MINING TECHNIQUES IN SW VA   
  Primarily, three underground mining techniques are used in the Appalachian coalfields, including drift mouth mining, slope mining, & shaft mining 
 
  In drift mouth mining, the miners enter the seam at an outcrop & follow it in 
 
  In slope mining, the miners enter the seam via a sloping shaft & follow it 
 
  In shaft mining, the miners dig a vertical shaft to the seam 
 
  Historically, mining has had a low level of regulation in SW Va   
  Because mining had a low level of reg in SW Va, there was mining done under towns & cities, homesteads were destroyed, watersheds were destroyed or polluted  
  The coal culture permeates the local Appalachian culture   
 
 Man trip vehicles are the vehicles miners use to travel in mines & most are on tracks 
 
 
 Continuous mining machines cut the coal 
 
  Continuous haulage systems move the coal 
 
  Roof bolting machines bolt the rood to keep it from collapsing 
 
 
 Pillars of coal are first left, then taken out allowing roof to fall or subside 
 
  Subsidence is a problem for any land owner who owns land above an underground mine because their land contour may change, collapse, develop a sink hole or a water drainage crevice   
  Construction on any land that has been mined is problematic because of subsidence & settling   
  In longwall mining, the miners support the roof w/ a steel canopy, which is removed allowing roof to fall in behind the shields 
 
  Contour, finger ridge or mountain top removal are types of strip mining that are becoming more common 
 
 
 In surface mining, miners use explosives to break up the overburden & then huge machines dig out the coal 
 
 
 Underground mined coal is more likely to need washing and sizing   

 
Internal
Links

Top
 Outline on  Industries
External
Links
 
 Since the 1970s, the most major Industries in the 1st world have experienced some level of 
 
 
     Globalization &  
 
     Deindustrialization  
 
 The changes fomented by globalization & deindustrialization have had positive & negative consequences; e.g., increased productivity, efficiency, profitability, & downsizing, unemployment, an overall loss of earning power for the working & middle classes
 
  Extractive industries are those that extract the product from nature, & where the final product remains essentially unchanged  
  Agriculture, fishing, forestry, mining, etc. are all extractive industries   
  Manufacturing industries take raw or processed products & processed them into more usable forms for sale to other mfrs or directly to consumers  
  Service industries are those that provide intangible products or perform useful labor on behalf of another  
  Service industries include industries in finance & banking, accting, medicine, transportation & utilities, entertainment, recreation, education, govt, social welfare, wholesale & retail trade, etc.  
  Advanced industrial society is characterized by a highly productive extractive & mfr sectors w/ a growing service sector  
  Post industrial society is characterized by a labor force in services is not larger than mfr, but mfr is shrinking due to tech & deindustrialization  
 
 THE PAPER INDUSTRY
 
 
 Paper has been in a relatively strong economic position & thus Labor has had a strong position
 
 
 There has been little pressure from foreign producers ( Tariff? )
 
 
 Paper production requires high skill workers
 
 
 Paper production has become increasingly automated
 
 
 Paper workers are represented by the United Paperworkers International Union ( now PACE )
 
 
 Even though the paper industry is strong, the general anti Labor climate has forced concessions on work issues & restraint on wage increases
 
 
 Paper production employers used plant location & equipment investment as levers in bargaining
 
 
 The paper industry has a tradition of local level economic bargaining, which decreased the union's ability to protect wages during this period
 
 
 THE TELECOMMUNICATIONS INDUSTRY
 
 
 Over capacity has been a problem
 
 
 Rates of productivity & profitability have declined
 
 
 There is substantial nonunion competition, especially from Northern Telecom
 
 
 Jobs are often restructured out of the union to mgt. & professional jobs
 
 
 Union membership in ATT shrank by 55% from 1984 - 1992
 
 
 Existing firms are starting wireless units & strongly resisting organization by Labor
 
Link
 The Table on the Revenues of the Sectors of the US Economy, 1990, shows that in terms of revenues services are the largest sector of the econ, manufacturing is the second largest, w/ finance in third
 
Link
 The Table on Employment in the Sectors of the US Economy, 1950 & 1990 shows that in terms of employment, the largest sector is services, wholesale /retail is second, w/ manufacturing in third
 

 
Top  
Table on the Revenues of the Sectors of the US Economy 1990
BT0702
Industrial Sector
Revenues
% of Total Econ of $3,786 bb
Extractive Sector  
 
Ag
$ 103.4 bb
  3 %
Mining
 42.5
  1
Manufacturing Sector
806.5
21
Construction
255.1
  7
Service Sector    
Other Services
963.4
25
Wholesale / Retail Trade
638.8
17
Finance / Banking / Insurance
647.5
17
Transportation / Utilities
328.8
  9
The Table on the Revenues of the Sectors of the US Economy, 1990, shows that in terms of revenues services are the largest sector of the econ, manufacturing is the second largest, w/ finance in third

 
Top  
Table on Employment in the Sectors of the US Economy, 1950 & 1990
BT0702
Industrial Sector
1950
1990
Extractive Sector    
Ag
< 1 %
< 1 % 
Mining
    2.3 
 1
Manufacturing Sector
38.9
21
Construction
  6.0
 6
Service Sector    
Other Services
13.7
31
Wholesale / Retail Trade
24.0
28
Finance / Banking / Insurance
  4.8
  7
Transportation / Utilities
10.3
  6
The Table on Employment in the Sectors of the US Economy, 1950 & 1990, shows that in terms of employment, the largest sector is services, wholesale/retail is second, w/ manufacturing in third

 
Internal
Links

Top
 Outline on the  Construction Industry
External
Links
  Like miners, construction workers take great pride in their work, though their org culture is not as strong
 
  Most construction workers have a high level of skill & exercise a good deal of autonomy on the job
 
  Often construction workers are organized into crafts such as electricians, cement workers, iron workers, heating & cooling workers, glass workers, & many more
 
  Construction is difficult to supervise because it is spatially dispersed because each construction project takes place in a different geographic location 
 
  Construction is difficult to supervise because much of it is skilled craft work  
  Often, only the construction worker in a given craft knows how best to do a given job
 
  Because of their skill & the spatial dispersion, construction workers are not closely supervised, rather their work is inspected either by their employer or by a govt building code inspector, after the work is completed
 
  Their skill & resulting autonomy give construction workers a sense of power & pride (Applebaum, 1981)
 
  Many construction workers belong to craft unions such as the Carpenters, the Electric Workers (IBEW) or the Operating Engineers
 
  About 40% of construction workers in the US are union members 
 
  Wages & work conditions are strongly influenced by the craft unions
 
  Union construction workers are more qualified than nonunion workers
 
  Unions cooperate w/ contractors & the govt to develop apprenticeship programs that produce craftsmen who are highly skilled in all aspects of their trade rather than a narrowly defined set of tasks (Allen, 1984)
 
  Union craft workers are btwn 7 & 11% more productive than nonunion workers even after adjusting for their higher wages
 
  Craft unions run hiring halls where contractors can hire workers on short notice
 
  Nonunion workers are becoming more common in construction & many occupations
 
  In the depressed housing mkt of the early 1990s, price competition became more important than quality
 
  Union construction workers made wage concessions & stressed their quality work & ability to produce on schedule
 
  Residential construction was sluggish in the 1990s & the excess of mfr space & office buildings curtailed the need for new business construction
 
  Strapped govt revenues slowed expansion & repairs of streets, highways, bridges, & other govt construction  
  Construction work has followed the population shifts & the movement of businesses from the Northeast & Midwest to the West & South  
  Tech advances in construction have been slow & few major employment displacing innovations are expected in the future  
  Women have increasingly gained entrance into construction, a previously all male field  
  As is often the case for the first wave of women entering a male dominated occupation, women have had to confront resistance from some of their male co-workers in the construction industry
 
  Unionization in the construction industry has declined from 50 to 25%  
  In the construction industry, firms have established nonunion subsidiaries ( called double breasting )  
  In the construction industry, firms  have escaped pre hire agreements  
  In the construction industry, firms   
  Labor is "salting" union organizers in unorganized firms  
  In the early 2000s, the construction industry & the real estate mkt experienced the biggest boom in there history  
  Booms in the construction industry & the real estate mkt are so central to the econ, that they are credited w/ keeping the US econ growing despite other econ drags such as outsourcing, high oil prices, etc.  
  The unprecedented strength of the 2000s construction industry & the real estate mkt boom have made people leery that the "bubble may pop," harming the entire econ  

 
Internal
Links

Top
 Outline on   Manufacturing
External
Links
 
 Manufacturing produces the wealth of goods & services characteristic of the modern world
 
  Mfr is the production of goods & services through industrial organization  
  Production is the transformation of resources into goods or services that people want  
  In the modern era, production has dramatically increased its quality, efficiency, & speed, & also achieved lower cost  
  At the core of production is the conversion process, the sequence of events in which resources are converted into products  
  Conversion occurs in both the production of tangible goods as well as intangible services  
  An example of production of an intangible service is a consultant's knowledge about a firm & the ability to communicate, the input, is transformed through analysis into specific advice about running a company, the output  
  Two basic types of mfr conversion are analytic systems & synthetic systems  
  Analytic systems breaks raw materials into one or more distinct products, which may or may not resemble the original material in for & function  
  An example of an analytic system is meat packing  
  A synthetic systems combines two or more materials to form a single product  
  An example of a synthetic system is steel making  
  Scholars of mfr now view industry as transitioning through two industrial revolutions w/ the first beginning in the 1600s & the second beginning in the 1960s  
  The First Industrial Revolution is characterized by the mechanization, standardization, the assembly line, automation, mass production, & powering all of these processes by non human, non animal sources of power  
  Mechanization is the use of machines to do work previously done by people  
  Standardization is the establishment of uniformity in goods or parts, making them interchangeable  
  The assembly line is a process where a series of work stations at which each worker performs a specific task in the production process  
  Automation is the process of performing a mechanical operation w/ the absolute minimum of human intervention  
  Mass production is the the mfr of uniform products in great quantities  
  The Second Industrial Revolution occurred because recent advances in production tech & processes are dramatically increasing efficiency & the flexibility of the structure & process of mfr in process design, materials mgt, quality assurance & improved human relations, & operations effectiveness  
  The advances in production tech from the Second Industrial Revolution include computer aided design, computer aided mfr, & computer integrated mfr. flexible mfr, & focused mfr  
  Computer aided design (CAD) is the use of computer graphics in the development of products or processes  
  Computer aided engineering is the use of computers for engineering & drafting  
  Computer aided manufacturing (CAM) is the use of computers to control production machines  
  Computer integrated manufacturing uses computer based systems that coordinate & control all the elements of design & production, including CAD & CAM  
  Flexible manufacturing replaces hard manufacturing & repetitive manufacturing  
  Hard manufacturing is the use of specialized production equipment that cannot readily be moved or changed, because of high set-up costs, to produce a new or different product  
  Repetitive manufacturing is the repeated, steady production of identical goods or services  
  Flexible manufacturing, aka Soft Mfr, is production using computer controlled machines that can adapt to various versions of the same operation  
  The focused factory is a mfr facility that deals w/ only one narrow set of products  
 
 Mfr requires a wide variety of occupations & services
 
 
 Mfr workers are broadly classified as craft workers, who are highly skilled, machine operators, assemblers who are considered to be semiskilled, & laborers, who are considered to be unskilled
 
 
 There are four major mfr industries including autos, steel, textiles, & chemicals
 

 
Internal
Links

Top
 Outline on the  Manufacturing Labor Force
External
Links
 
 The labor force in mfr is generally categorized into craft wkrs, machine operators & assemblers, unskilled workers, & various levels of supervision, middle mgt, & upper mgt
 
  CRAFT WORKERS:  
 
 In 1992, there were over 13 mm workers classified as skilled craft workers
In 2000, there were over 12 mm workers classified as skilled craft workers
 
 
 About 4 mm craft workers were employed as precision production operators ranging from tool & die makers to power plant operators
 
 
 An additional 4 mm craft workers were mechanics & repairers
 
 
 The remaining 5 / 4 mm were skilled workers in construction in 1992 / 2000
 
 
 Craft apprenticeships teach skilled workers their trade through apprenticeship programs set-up by unions, mgt, & the govt or any combination of them
 
 
 There are usually about 250,000 workers enrolled in apprenticeships at any one time
 
 
 Apprentices receive about half pay during their apprenticeship & spend from about 100 to 800 hrs in the classroom & 2 to 5 yrs in OJT
 
 
 Skills learned are the source of the craft worker's pride & power & the basis for the craft worker's claim to autonomy
 
 
 Craft workers resent direct supervision because they legitimately feel that only they have the expertise to decide how best to do a given job
 
 
 Because of their skills, autonomy, power, & inability to ship their jobs overseas, craft workers have more security against layoffs
 
  Mfr experiences powerful business cycles, i.e. extreme cycles of econ booms & busts during which the workforce expands or experiences massive layoffs  
  Skilled workers are the least likely to experience layoffs because of business cycles than semi-skilled & unskilled workers  
 
 Automation has affected craft workers less than skilled & unskilled workers; however, there are exceptions in industries such as printing
 
  MACHINE OPERATORS & ASSEMBLERS:   
 
 In 1992, 13 mm workers were machine operators & assemblers & in 2000, 14 mm workers were machine operators & assemblers 
 
 
 Machine operators & assemblers are considered to be semi-skilled 
 
 
 The Bureau of Labor Statistics (BLS) defines semiskilled work as requiring about than 2 weeks of training, & are not involved in any type of apprenticeship program, & require no credentials
 
  For semiskilled workers it often takes much longer than 2 weeks to become proficient  
 
 Machine operators may work in everything from textiles & apparel to lathes, to welders to laundering & dry cleaning to transportation equipment including truck drivers & forklift operators
 
 
 Many semiskilled jobs involve work on mechanically paced lines where the work is extremely repetitious which requires a high degree of surface mental attention w/o corresponding mental absorption (Rankin, 1990)  
 
 Repetitive work is stressful & can be hazardous to joints & tendons, causing repetitive motion syndrome  
  Some workers prefer repetitious, boring jobs on the line to related jobs w/ slightly more diversity but w/ closer supervision  
  Workers on the assembly line or operating machines often are very stressed out by the pressure they feel to keep up w/ the assembly line or to produce to quota  
  Jobs that demand sloppy work are demoralizing & maintaining pride in one's work is difficult when keeping up w/ the assembly line or producing to quota on machines  
  Mfr workers are often expected to participate more actively in quality control, & this often necessitates that they have more control over the speed of production
 
  While jobs which allow control over pace & quality are more rewarding, it is not clear that they are less stressful
 
  Wkrs cooperate to "manage" the pace of assembly line work by working ahead, working up the line, banking production, or if they fall behind, by doubling up  
  The cooperation of workers to "manage the pace of work" is typically overlooked by mgt  
  See Also:  Workers' Resistance to Control at Work  
  UNSKILLED LABORERS IN MFR:  
  In 1992, there were about 5 mm unskilled workers   
  Unskilled occupations are those which require a day or so of training to learn the job, & which requires no apprenticeship program or credentials  
  For unskilled workers, it often takes more than a day to become proficient at their job  
  Unskilled workers are employed as laborers, materials handlers, equipment cleaners, helpers, etc.  
  Unskilled jobs are often closely supervised under the belief that workers will not do the tasks right unless forced to do so  
  Close monitoring is an additional negative factor in unskilled work  
  Most laborers can be hired off the street  
  CAREER MOBILITY IN MFR  
  Mobility in mfr is less than overall social mobility in the US today since mfr has been particularly hard hit w/ deindustrialization & globalization  
  Of the jobs that remain in mfr, there is still social mobility, but it is less than the average of the high tech jobs, & upper mid class mgt & admin jobs, etc. & because the jobs that replace mfr jobs are usually lower paid service jobs  
  See Also:  Social Mobility  
  See Also:  Deindustrialization  
  See Also:  Globalization  
  The occupational outlook for labor intensive jobs is poor  
  Both male & female laborers believe that they have little chance of moving up, occupationally  
  Male laborers typically aspired to be mechanics & women laborers typically aspired to the traditional female jobs of teacher, nurse, or secretary  
  Low aspirations are a functional response to the problems of alienation, job dissatisfaction, lack of autonomy & generally poor working conditions  
  Laborers see limited job opportunities in local areas  
  Laborers have family, local, & regional ties that make workers reluctant or unable to relocate  
  Laboring provides little extra money for savings to relocate  

 
Internal
Links

Top
 Outline on Workplace Control
External
Links
  Mgrs generally seek as much control of the workplace as possible
 
  The division of labor produces not only specialized positions but also a vertical differentiation w/in orgs based on power  
  See Also:  The Division of Labor   
  Workers whose tasks are finely subdivided, i.e. deskilled, suffer a loss of skill, a loss of power, & a loss of wages  
  The power & income of those who organize the labor of others increases  
  In Labor & Monopoly Capital, 1974, Braverman argues that the purpose of assigning detailed tasks to different workers is to lessen their skills & thus lower their wages  
  In "The origins of job structure in the steel industry" (1974) Stone argues that while the division of labor of the crafts into subtasks & the development of machinery increased productivity, the assignment of detailed tasks to different workers is motivated by a drive to deskill labor in order to cheapen its price & reduce its intellectual power  
  Thus, the organization of labor becomes a way to control workers  
  Many social theorists have examined control in the workplace & found that control in the workplace is less a function of efficiency & more a function of maintaining power over workers & profits  
  Social theorists have found that power in the workplace influences power relationships in everyday life  
  See Also:  Economic Sociologists  
  Organized labor & individual wkrs have generally been reluctant to seek shared responsibility for decisions making in the wkplace
 
  Some theorist maintain that: 
 
  a.  wkrs are culturally conditioned to be servile; i.e., to not welcome wkplace control by lower level employees  
  b.  wkrs are alienated if they have no voice / power in the wkplace;  i.e., wkr are more satisfied if they do participate in decision making in the wkplace  
  Labor has been reluctant to seek workplace control because of their historical adversarial role, the corporatist / business unionism philosophy, & because of the economic concessions labor would have to make to gain such participation
 
  Both employers & unions began to consider cooperation during the 1980s where firms found themselves in highly competitive market environments
 
  In return for concessions on wages & benefits, labor has sometimes won greater control over the work process, & a share in the profits
 
  Greater control of the workplace & greater control of their share of the profits have often been done to help achieve employer survival & increase employment security
 
  The effect of labor mgt joint decision making flows along the TWO dimensions of: 
a.  control rights
b.  return rights
 
  a.  Control rights involve the degree to which labor participates in org decision making
 
  Unionization in itself inserts a degree of control rights because mgt decisions are now limited, w/ some of them being made by the wkrs through their union
 
  At the extreme, control rights include wk council arrangement such as in Germany
 
  b.  Return rights include the wage & salary system, incentive plans, profit sharing, gainsharing, ESOPs, etc.
 

 
Internal
Links

Top
 Outline on  Worker's Resistance to Control at Work
External
Links
  Technical Control & Scientific Mgt. appear to increase efficiency because they specify precisely how work is to be done, & how quickly
 
  It is clear that w/ the development of work from the pre-feudal era, to the feudal era, to the industrial era, workers have clearly experienced increasing levels of control
 
  One of the limitations of the control of the workplace is that the processes to achieve such control make limited use of workers' skills
 
  Production rarely occurs exactly as planned, & machinery & parts often fail
 
  When workers are denied the skills & training necessary to deal w/ unforeseen contingencies, they are not in a position to handle the unexpected
 
  Technical Control & Scientific Mgt transfers skills to industrial engineers so that workers cannot deal w/ anomalous situations at work
 
  Technical Control & Scientific Mgt remove freedom & enthusiasm at work
 
  When workers are alienated because they are not creatively invested or challenged at work, they make a science of finding ways to allow production to lag, or to entertain themselves  
 
 The greatest growth in the Labor Movement occurred immediately after the advent of Scientific Mgt & Technical Control
 
  Workers cooperate to "manage" the pace of assembly line work by working ahead, working up the line, banking production, or if they fall behind, by doubling up  
  The cooperation of workers to "manage the pace of work" is typically overlooked by mgt  

 
Internal
Links

Top
 Outline on the  Women & Minorities in Manufacturing
External
Links
  Exclusionary Practices have been common against all workers in the mfr sector as a result of its organization via unions & crafts & the need to limit inclusion to keep wages high & improve the power of the workers
 
  Mgt has always seen to it that there was high competition among workers to keep wages low
 
  However, many exclusionary practices were detrimental to women & minorities because wage & power equality were denied them to the benefit of white men
 
  Women & minorities have been successful in integrating into the mfr workforce in recent decades
 
  In 1992, 23% of white male workers were in the skilled trades  
  In 2000, 14 % of white & Hispanic male workers were in the skilled trades  
  In 1992, 7% of Blacks, 6% of Hispanics, & 2% of women held jobs in the skilled trades  
  In 2000, 9% of Blacks, & 2% of women held jobs in the skilled trades  
  The exclusion of women in the skilled trades continues because of different socialization of men & women, continuing discrimination, & a lack of informal job contacts  
 
 Blacks & Hispanics are overrepresented in unskilled work in mfr because of a historical pattern of discrimination in better paying manual jobs
 
 
 Women are underrepresented in unskilled work largely because many of them have sought employment in fields such as clerical work & other female gendered jobs such as teaching & nursing
 
 
 In 1992, Black males constituted 10% of the labor force, but 15% of the unskilled workers
 
  In 2000, Black males constituted 11% of the labor force, but 16% of the unskilled workers  
 
 In 1992, Hispanics constituted 8% of ot the labor force, but 12% of the unskilled workers
 
  In 1992, Hispanics constituted 10% of ot the labor force, but 18% of the unskilled workers  
 
 In 1992, women constituted 46% of the labor force, but 18% of unskilled workers
 
 
 In 1992, women constituted 46% of the labor force, but 20% of unskilled workers
 
Internal
Links

Top
  An Overview of  Culture
External
Links
 Link
 -  Video:  Culture 
Link
  -  Project:  Identifying a Culture 
Link
  -  Project:  The Intersections of KBVN 
Link
  -  Project:  Real & Ideal Culture
Link
  -  Project:  Video:  What Is Culture? 
Link
 
 -  Project:  Video:  The Social Orgs of Culture 
Link
Link
 -  Video:  Romeo & Juliet 
Link
  CULTURE IS THE SHARED KNOWLEDGE, BELIEFS, VALUES, NORMS ( K B V N ) & THE PHYSICAL & ABSTRACT MANIFESTATIONS OF THAT CONTENT   
  All societies have a culture   
 
 Culture may be defined as the shared content of society   
  The FOUR components of culture are knowledge, beliefs, values, norms       ( K B V N )   
 
 The four components of culture are physically manifested through symbols & language 
 
 
 Symbols are defined as anything that carries a particular meaning recognized by people who share culture 
 
 
 The meaning of the same symbols varies from society to society, w/in a single society, and over time 
 
 
 Culture is the shared set of meanings that are lived through material & symbolic practices, & the socially created objects of everyday life   
  Do not confuse the common usage of the word "culture" w/ the sociological use   
  People commonly use culture to mean society &/ subculture & this usage would include both culture ( KBVN ) & social structure ( PF REG M CEML )   
  THE EXPRESSION OF CULTURE IS ACCOMPLISHED IN MANY WAYS INCLUDING LANGUAGE, ART, RELIGION, CUSTOMS, & MORE   
  When examining culture, KBVN are often expressed in SEVEN configurations 
 Roles                      Language                        Technology 
 Customs                 Material Objects 
 Religion                 Groups of People 		  
 
 Culture shock refers to personal disorientation when experiencing an unfamiliar way of life 
 
 
 Only humans depend on culture rather than instincts to ensure the survival of their kind 
 
  Culture is a long time in the making   
  Culture can be a constraint in that humans cannot live w/o culture, but the capacity for culture has some drawbacks   
  Culture can be a source of freedom in that culture forces us to choose as we make & remake a world for ourselves   
 
 The social sciences carry out 'cultural mapping,' i.e. a cataloging of the various aspects of culture throughout societies   
  THE SOCIAL SCIENCES EXAMINE VARIOUS ASPECTS OF CULTURE   
  1.  Sociologists examine how cultures are created & maintained in modern society & how culture impacts social structures & personality   
  2.  Anthropologists examine how cultures are created & maintained in ancient  &/ indigenous societies   
  3.  Geographers examine how place & space shape culture & vice versa & how culture is organized spatially   
  4.  Psychologists examine how the subconscious is manifested in culture   
  5.  Political scientists examine how culture affects govt & the political process   
  Sociologists generally accept TWO human manifestations of culture:  material & non material culture which occur in the TWO settings of the physical environment & the human environment   
  All the levels meld into one seamless culture: 
1.  Material culture 
     a.  Material culture & the physical environment 
     b.  Material culture & the human environment 
2.  Non material culture 
     a.  Non material culture & the physical environment 
     b.  Non material culture & the human environment 		  
  1.  MATERIAL CULTURE IS MANIFESTED IN OBJECTIVE REPRESENTATIONS OF KBVN 
 
  a.  MATERIAL CULTURE IS MANIFESTED THROUGH THE PHYSICAL ENVIRONMENT   
  The physical environment includes the "natural" environment as well as human made rural landscapes, city-scapes, etc.   
  Even the physical environment in which we live comes to be identified as a representative of our material culture & the environment does shape our KBVN   
  Usually different regions have a cultural attachment to their environment   
Link
 Examples of material culture & the physical environment   
 Link
 b.  MATERIAL CULTURE IS MANIFESTED THROUGH THE HUMAN ENVIRONMENT   
Link
   1)   World symbols:  An example of a world symbol is the UN Building or the Earth picture   
Link
   2)   National symbols:  a nation's flag   
Link
   3)   Regional symbols:  race car   
Link
   4)   Homes/ businesses styles:  ranch home, mobile home   
Link
   5)   Cars, boats etc. styles:  SUV, mini van, sports car, etc.   
Link
   6)   Clothing styles:  woman in a black dress, men in black   
Link
   7)   Body shape / style:  body art   
  2.  NON MATERIAL CULTURE IS MANIFEST IN SUBJECTIVE, ABSTRACT, IDEOLOGICAL, ETC. REPRESENTATIONS OF CULTURE   
Link
 Non material culture is manifested in abstract representations of KBVN   
  a.  KNOWLEDGE IS MANIFESTED / DEMONSTRATED IN & BY CULTURE   
Link
 Knowledge is shared truth based on science   
  Examples of cultural manifestations of knowledge are Darwin fish symbols, Stanford T-shirts, math symbol jewelry, tech gear & the very ideas these symbols represent   
  b.  BELIEFS ARE MANIFESTED / DEMONSTRATED IN & BY CULTURE   
Link
 Beliefs are shared truth based on tradition, religion, instinct, emotion, common sense   
  Knowledge & beliefs are like two intersecting circles w/ mutual & exclusive content   
  Examples of cultural manifestations of beliefs are Christian fish symbols, Jesus T-shirts, Crescent Moon jewelry, religious dress, & the very ideas these symbols represent   
  c.  VALUES ARE MANIFESTED / DEMONSTRATED IN & BY CULTURE   
Link
 Values are shared personal judgments/preferences about what is considered good/bad, like/dislike that serve as broad guidelines for social life   
Link
 Core American values have an ideal & a real Aspect;  See the Table on the Ideal & Real Aspects of Core American Values   
  Ideal values are those that actors hold "patriotically," or rhetorically, that actors believe that they hold   
  Real values are those that actors actually practice; when faced w/ a "situation," actors show their real values   
  The concept of  real values can be seen in the fact that Americans have the core cultural value of democracy, but fail to vote   
  d.  NORMS ARE MANIFESTED / DEMONSTRATED IN & BY CULTURE THROUGH FOLKWAYS, MORES, LAWS, ETC.   
Link
 Norms are shared expectations about behavior, i.e. socially defined rules 
 
  i.   Folkways are informal, minor norms that usually carry only minor & informal sanctions, or punishments, when they are violated   
 
 Example:  Manners   
  ii.  Mores are informal norms, that are very important to people & may be written into law   
  Example:  People should not talk loudly in religious buildings 
 
  iii. Laws are formal, codified norms which everyone is expected to be aware & which carry specific, legal sanctions   
  Example:  driving regulations 
 
  Western cultural practices are exported by the media to remote corners of globe 
Paul Harvey:  Yet this is not “one world” 		  
  INTERSECTIONS OF KBVN OCCUR AS A RESULT OF SOCIALIZATION & LIFE EXPERIENCES, & VARY WIDELY RESULTING IN INFINITE MANIFESTATIONS OF CULTURE   
Link
 Culture's components of  K + B + V + N, have limited intersections   
  Knowledge & beliefs are like two intersecting circles w/ mutual & exclusive content   
  WI Thomas on truth.... & culture:  'What we believe to be true, becomes true in its consequences'   
  Examples:  men are buffoons 
Cuban Missile Crisis:  the Russians are offering a way out / the Russians are holding a hard line 
A clique believing someone is cool 		  
Link
 We each have conflicting views on  KBVN   AOI  which often create anxiety, cognitive dissonance, etc. on an individual level and conflict, strife, war, etc. on a societal level   
Link
 Non material culture & the physical environment can be seen is the aesthetic question:  "What is the meaning of wind whispering in trees to your culture?"   
Link
 Non material culture & the human environment can be seen is the aesthetic question:  "What is the meaning of a veiled face?   of green hair?"   

 
Top  
Material culture & the physical environment

Examples:    mountains, ocean, corn fields 
Midwest:  rich farm land, lazy rivers, flat land, cold winters 
West coast:  beaches, sunshine, warm winters, best climate 
Appalachia:  mountains, forests, strip mines 


 
Top  
Material culture & the human environment
Physical objects representing non material or abstract culture 
      World Symbols 
      National Symbols 
      Regional Symbols 
      Homes
      Cars, boats, planes, etc. 
      Clothes 
      Body 

 
Top  
World symbols
Not many of these 

UN Building


 
Top

National symbols

US Flag 
Confederate Battle Flag 

Some smaller items 
Food:  chocolate 


 
Top
  
Regional symbols
Silo 
Mississippi River 
Empire State Building 
Cheese 
Potatoes 
Tobacco 

 
Top
  
Homes
Shacks to Mansions to Castles 

 
Top
  
Car, boats, etc.
Mini van to SUV to Harley to junker 

 
Top
  
Clothing
Clothing, like language, is so personal that it identifies your culture 
We use clothing to indicate respect ( in a ritual such as marriage, or funeral ) or disrespect 

 
Top
  
Body
Body image & decoration is becoming more & more malleable: 
We now idolize the thin, athletic body 
But less thin that the "Twiggy" days of the late 1970's 
Heavier men & women were preferred in earlier times 
Women have been subject to greater pressures to achieve the ideal body image than have men.... but is this changing? 

 
Top
  
Non material culture
Abstract:  the knowledge, beliefs, values & norms  ( KBVN ) of a society 

           a.  Non Material culture & the physical environment 
           b.  Non Material culture & the human environment 

 
Top
  
1. Knowledge:  shared truth based on science   We believe it to be true 

Physical Sciences 
  Natural 
  Life 
Social Sciences 
Humanities 
Arts 

Knowledge is not absolute in that it changes from society to society from year to year 
Generally we can speak of scientific knowledge 


 
Top
  
2. Beliefs: shared truth based on tradition, religion, instinct, emotion, common sense 
General recognition of less truth validity 
There is no clear line btwn Knowledge & Beliefs 

 
Top
  
3. Values:  Shared personal judgments/preferences about what is considered good/bad, like/dislike that serve as broad guidelines for social life

We are generally unaware of what our values are unless we have gone through training/coaching/therapy to "know thyself" 


 
Top
  
Table on the Ideal & Real Aspects of Core American Values
Core American values: general consensus 
( may conflict )		 Ideal culture: 
accepted in principle		 Real culture: 
actually practiced
1.  Freedom   Freedom for all; Freedom is our Number 1 Value!  We allow more freedom for a middle majority & the upper class, less for the others.  Many groups have limited freedom
2.  Democracy
 
 
3.  Individualism 
 
 
4.  Responsibility 
 
 
5.  Religion/morality 
 
 
6.  Science/tech 
 
 
7.  Opportunity
 
 
8.  Competition
 
 
9.  Work ethic
 
 
10.  Humanitarianism
 
 
11.  Practicality
 
 
12.  Nationalism
 
 
13.  Romance
 
 
14.  Sexuality
 
 

 
Top
  
4. Norms
 Folkways:    manners, grammar, dressing appropriately 
 Mores:        littering to flag burning 
 Laws:          littering, flag burning, to robbery & murder 

We are not generally conscious of norms 
Their impact is automatic:  internalized 

We often can ponder the norm of a particular situation


 
Top
  
Knowledge, beliefs, values, norms are like four intersecting circles
 K & B can be tested, but are not 
V & N are not recognized as vague 

 
Top
  
Culture = K + B + V + N 
The sum of our culture 
(knowledge, beliefs, values, rules [norms]) 
creates truth for each of us 
What people agree on is “the truth”

WI Thomas:  If people believe something is true, it becomes real in its consequences. 
 Knowledge & beliefs define action 
 Earth:  flat or round 
 Love:  eros, filial, romantic 
Beauty: 

We are not generally aware of what our culture is 
We do not know what is in our own mind w/ regards to K B V N 


 
Top
  
KBVN AOI
We are generally not explicitly conscious of our KBVN 
We hold conflicting positions in relation to KBVN AOI 
But some people are more introspective about 
     Attitudes 
     Opinions 
     Interests 

 
Top
  
Non Material culture & the physical environment
Humans definitely attribute abstract meanings to the physical environment 
As scientists, we cannot judge this, only try to understand it
Durkheim delved deeply into this question: 
Some critics today decry our loss of connection w/ the environment & the mystical 

What is the meaning of an untouched forest? 
What is the meaning of a Clinch River freshwater mussel?
What is the meaning of Antarctica?
The moon?
The stars?
The planets? 


 
Top
  
Non Material culture & the human environment
As human influence & material creations grow, so does the amount of meaning we attribute to human made creations 

What is the meaning of a Ford Excursion?  ( the largest SUV ) 
What is the meaning of green hair? 
What is the meaning of a 5 caret diamond ring?  estimated value $1/4 million 


 
Internal
Links

Top
 Outline on Working Class Culture
External
Links
  -  Video:  A Hole in the Sky 
Link
  -  Project:  Video: The Early Industrial Working Class & "A Hole in the Sky" 
Link
  THE INDUSTRIAL WORKING CLASS HAS ITS OWN SUBCULTURE BASED ON THE UNIQUE NATURE OF ITS WORK & THE SOCIAL STRUCTURE OF THE INDUSTRY
 
  Culture is the shared knowledge, beliefs, values, norms & the physical & abstract manifestations of that content & thus working class culture is a subculture that also has these attributes   
  The WC culture is the result of the shared knowledge, beliefs, values, norms they experience in their everyday lives   
  Working class culture includes the elements taken directly from the working class experience on the job, such as pride in doing quality work, economic insecurity, & cooperation w/ co-workers (Fantasia, 1988)
 
  THE KBVN OF WC CULTURE IS ESTBED VIA THEIR SHARED EXPERIENCES IN THEIR WORK & FAMILY LIFE   
  Working class culture includes the pride of knowing how industrial plants & how procedures really work, as opposed to how they are said to work on paper
 
  As workers have done throughout history, workers guard their knowledge of the workplace & the performance of their job as their own private treasure
 
  Part of working class culture includes the knowledge of econ insecurity because of the type of econ system in which they live & thus the norm of a fear of econ insecurity  
  Workers have had little incentives to share knowledge of the workplace or the performance of their job w/ mgt because mgt has historically used this knowledge against workers via speed-ups, using it to increase efficiency & reduce pay or the number of workers, etc. 
 
  The beliefs of the WC are more parochial & less cosmopolitan & thus tend to come largely from family & friends, & are thus less influenced by ed, the media, etc.  
  The beliefs of the WC may be considered to be more traditional & historically they have moved away from a Labor Mvmt culture as a result of the successful campaign by corps to dismantle WC organization & networking (see the section below on: the WC fragmentation below)  
  The values of WC include a strong acceptance of the Protestant work ethic, family loyalty, patriotism, & respect for authority  
  The norms of the WC are stronger than the norms of the higher classes in that deviance is less tolerated or accepted  
  WC CULTURE EMBRACES THE NORM OF COOPERATION W/ CO WKRS, BUT THEY ARE OFTEN STRUGGLING W/ MGT SINCE IT HISTLY HAS SOUGHT AN ALIENATING AMT OF CONTROL, ESP OVER THE LOWER CLASSES   
  Working class culture embodies the norm of cooperation w/ co workers   
  The working class cultural norm of cooperation w/ co-workers of is seen in day to day activities in & out of the workplace & also in how workers deal w/ mgt & the pace of work  
  See Also:  Workers Resistance to Control at Work  
  Social theorists of the workplace debate the apparent, though not confirmed contraction of whether workers are passive actors in the workplace, best managed by Theory X types of tactics, or whether workers are engaged actors who prefer Theory Y & mgt, self management, pushing for change  
See Also:  McGregor's Theory X & Y  
  Working class culture accustoms workers to having no role in decision making (Halle, 1984)
 
  Working class culture has been described in a variety of contradictory ways (Form, 1985) which reflects its diversity
 
  Historically, researchers have argued that workers are passive & accepting on the job & find their rewards outside of work through family & consumption (Goldthorpe et al, 1969)
 
  Workers are seen as being chronically dissatisfied but unrebellious (Chinoy, 1955)
 
  Marxist researchers see workers as potentially revolutionary but stymied by the greater economic, political, & ideological resources of capitalism (Poulantzas, 1975)
 
  LIKE THE WC ITSELF, WC CULTURE IS ACTUALLY A COMPOSITE OF SUBCULTURES FROM THE MANY DIFFERENT OCCUPATIONS, SKILL LEVELS, RACES, GENDERS, ETC.   
  Workers are seen as caught up in a microcosm of informal workplace subcultures & local loyalties (Thomas, 1990)
 
  The working class is broad & diverse & does not constitute a unitary subculture (Form, 1985) w/ distinct segments w/in it
 
  Hodson & Sullivan see three segments in the working class, including the blue collar aristocrats, the semi skilled, & the unskilled
 
  The blue collar aristocrats are a reasonably well paid segment of skilled workers employed in large firms w/ good benefit packages
 
  See Also:  Lower Level Employees  
 
 Blue collar aristocrats often work in unionized settings
 
  The semi skilled segment of the working class is employed in marginal establishments where wage are lower & benefits are less comprehensive  
  The semi skilled are sometimes employed in unionized workplaces & sometimes not, but regardless their workplace is always affected by unionization
 
  The unskilled segment of the working class is employed in marginal workplaces & are able to secure only irregular or unstable work at the lowest wages  
  The working class is further subdivided along race, ethnic, & gender lines  
  THE WC REMAINS FRAGMENTED, UNORGANIZED, RELATIVELY POWERLESS BECAUSE THEY HAVE ABANDONED THE LABOR MVMT   
  Although the working class has occasionally been able to organize itself into a unified body, as in the trade union movement or in the working class political parties in Europe, such combinations are fraught w/ internal divisions as different segments of the working class struggle for different goals   
  Groups representing the working class are important in advancing its interests, but the working class (WC) has large & diverse interests  
  The capitalist class, which has opposing interests on many issues, is better organized & better funded than the WC & as a result the WC alliances have been fleeting & partial  
  Historically, the only time the WC has manifested any significant power was during the peak of the Labor Mvmt from the late 1800s until the 1960s   
  The AFL had historically allied itself w/ the craft workers, against the blue collar aristocrats, the semi-skilled, & the unskilled labor force  
  The CIO was built on the premise of that the blue collar aristocrats of the new industrialization in the US of the early 1900s could be organized, but they still eschewed the semi-skilled, & the unskilled labor force  
  After the success of the CIO, it allied w/ the AFL to become the AFL - CIO  
  Corporate campaigns to weaken or eliminate Labor Mvmts have been frequent, & since the Reagan Admin of the 1980s, very successful   

 
Internal
Links

Top
 Outline on  HRO Org Culture
External
Links
 
 HRO org culture is built on the shared group responsibility for the work & the relatively isolated work community
 
 
 For example, miners' work ethic prescribes that the work be done according to certain standards of safety & efficiency
 
 
 Miners have a sense of solidarity that developed from group responsibility for work, and living in isolated communities  
 
 The miners' work ethic also stresses competition btwn work crews in the effort to produce the most tonnage (Hannah, 1982)
 
 
 Teams of miners are responsible for organizing their own activities below ground & are resentful of external control of their work (Douglas & Krieger, 1983)
 
 
 The miners' sense of group solidarity is intensified by the many dangers they face including ventilation problems, bad lighting, dust, gases, use of explosives, dangerous roofs, unsafe tunnels, flooding, & high voltage electrical equipment (Corn, 1983)
 
 
 Above ground, the miners' collective identity is reinforced by the relative isolation of miners
 
 
 In mining regions, a distinct culture often emerges that provides its members w/ a shared identity
 
 
 An occupational community is the sense of community, the of relationships, the org culture, & the social structures which develop around a particular occupation due to the nature of an occupation that usually creates solidarity among the workers & their families, & extensive socialization w/in & outside of the workplace
 
 
 Typical occupational communities exist around the occupations of miners, lumber workers, longshoring workers, printers, urban & wildland firefighters, police, EMS, & nearly all HROs
 
 
 Occupational communities are usually isolated from mainstream society by geography or ideology or both 
 
 
 The classic professions of doctors, lawyers, accountants, & professors, as well as the new professions & semi professions of nurses, electricians, computer programers, et al also usually have an org culture & may also have an occupational community
 

 
Internal
Links

Top
 Outline on   Why the Middle & Working Classes Have Not Organized
External
Links
 
 The middle & working classes have not organized because: 
 
  [Note that all of these reasons are intertwined & influence each other]  
  1.  the present socio economic political system (SEP Sys) makes it hard to sacrifice for the group, the greater good, when you are fighting for survival  
  2.  the non upper classes lack basic knowledge of the workings of the SEP Sys  
  See Also:  The Theories of the Social Sciences  
  See Also:  Conflict Theory  
  3.  the non upper classes lack basic knowledge of how to change the SEP Sys  
  See Also:  Social Change  
 
 4.  the upper class has it's own interest, & pursues them; the UC has class consciousness; the UC has opposing interests to the non- upper classes; the UC is better organized & funded than any of the lower classes;  the UC works to preserve their own ideology & disseminate it to the non upper classes
 
  See Also:  Class & False Consciousness  
  See Also:  Ideology  
  5.  the non upper classes have false consciousness in that they support the interests of the UC   
 
 6.  non upper class culture reflects the culture of the UC as embodied in the "American Dream" & this is a culture that socializes people to pursue institutionalized goals via institutionalized methods, & it is not a culture of revolution, must less even radical change
 
  See Also:  Culture  
  See Also:  Working Class Culture  
 
 7.  working class diversity embodies diverse values which represent diverse interests over riding the goal of improvement for all
 
 
 8.  racial, ethnic, & gender differences are exploited by the upper class
 
 
 See Also:  Split Labor Mkt Theory  
 
 9.  the Horatio Alger Myth, where we see the upper class as something to attain, not something to change, & other main stream values are actually the knowledge, beliefs, values, & norms, i.e. culture of the upper class  
 
 10. the non upper classes of the 1st world have the powerto institute change but are essentially satisfied, or not exploited to the stage of wanting to fight for change
 
  11.  the non upper classes of the semi periphery & periphery are essentially dissatisfied to the stage of wanting to fight for change, but they do NOT have the power to do so  

 
Internal
Links

Top
 Outline on the  Auto Industry
External
Links
  AUTO MANUFACTURING HAS BEEN THE KEY MFR INDUSTRY DURING THE LATTER HALF OF THE 20TH C   
  Auto retail sales are the largest portion of the US econ at over $ 1 tt in sales per year in 2004   
  Worldwide, over 20 mm workers are involved in auto making   
  Organizationally, today the production of autos & auto components is based on one of the most globally dispersed networks of any industry   
  World production of auto peaked in 1978 at 32 mm autos a yr, faltered in the 1980s, & resuming growth at a slower rate in the 1990s, reaching a peak of over 50 mm autos in the early 2000s   
 
 THE AUTO MKT IS VOLATILE BECAUSE PEOPLE DELAY BUYING CARS IN DOWNTURNS, RISING GAS PRICES, THE MKT IS SATURATED, & MANY IN THE GLOBAL MKT DO NOT YET HAVE THE WEALTH TO BUY A CAR 
 
  The mkt for autos is highly volatile because:   
  -  autos are a big ticket item that people can delay buying during econ downturns   
  -  gas prices are rising & fluctuate   
  -  in the industrialized world, the auto mkt is relatively saturated   
  -  in the non industrialized world, people can afford autos only as their wealth grows, which is occurring slowly   
 
 Since the 1970s, the workers in auto industry, like steel, textiles, & other industries have suffered the effects of: 
 
 
 -  globalization   
 
 -  deindustrialization   
  -  global trade agreements   
  -  a decline in the Labor Mvmt   
  THE AUTO INDUSTRY HAS DEVELOPED FROM HAVING HUNDREDS OF PRODUCERS TO ONLY 3 US PRODUCERS & ANOTHER DOZEN WORLDWIDE  
  The auto industry began in the early 1900s & created several hundred auto makers whose names are often model names today   
  Through mkt concentration & the pursuit of profit maximization, these hundreds of enterprises became concentrated into just four US automakers:  GM, Ford, Chrysler, & American Motors   
  By the 1980s just four US automakers remained, GM, Ford, Chrysler, & American Motors & it was assumed that govt. regulations would prohibit further concentration, but under the Reagan Administration, Chrysler was allowed to purchase American Motors   
  The oligopolistic US auto industry resulted in soaring car prices, the production of large cars despite market demand for small cars, inefficient vehicles w/ fuel mileage, & low quality cars   
 
 AS A RESULT OF A WEAK STRATEGY & GLOBAL COMPETITION, THE US AUTO INDUSTRY HAS DECLINED DRAMATICALLY, W/ GM & CHRYSLER FILING BANKRUPTCY IN 2009 
 
  Auto lost 48% of its workforce from 1978 - 1993 
 
  Firms moved to lean production techniques 
 
  Unlike steel, the remaining workers experienced increases in wage 
 
  While the job force was reduced, some guarantees of job security & layoff limitations were negotiated 
 
  Firms used investment decisions to gain leverage in work rule changes 
 
  In auto parts supply, some sectors have used employee involvement 
 
  Some sectors of the auto industry have seen concessions 
 
  Some sectors of the auto industry have focus on cost savings 
 
  Earnings have decline & the nonunion sector leads in innovations in work practices 
 
  AS ASIAN & EUROPEAN AUTO CORPS FOSTERED COOPERATIVE LABOR RELATIONS TO INCREASE PRODUCTIVITY, US AUTO CORPS MAINTAINED ADVERSARIAL LABOR RELATIONS IN A CLIMATE OF DOWNSIZING
 
  As in most other major industries since the 1980s, National Level Pattern Bargaining broke down   
  The UAW has had some success in re-establishing pattern bargaining   
  The large auto makers are divesting ( selling off ) their parts subsidiaries & this is hurting Labor 
 
  Through the return of competition in the form of Japanese & European automakers, who captured a large share of the US mkt, US automakers were forced to return to competitive relationships, thereby increasing efficiency   
 
 It is generally recognized that US automakers returned to competition in a haphazard manner, basing most of it on labor force reduction, eschewing input from Labor & workers 
 
 
 However, as Japanese & European corporations institutionalized Quality Control Circles, a role for Labor in at the corporate table, & other workplace innovations, US automakers were slow to follow, but yet have found it necessary to do so 
 

 
Internal
Links

Top
 Outline on the  Competition in Auto Manufacturing
External
Links
  -  Video:  Gung Ho
Link
  The problem of the stagnant mkt in autos was amplified by increased competition from Japan, W. Europe, Korea, E. Europe, & Latin Am
 
  See Also:  The Global Auto Industry  
  In 1960, the US produced over half the autos in the world, by the 1990s, it's share had fallen to less than a quarter, & it remains at this level in the 2000s
 
  Reasons for the US decline in the share of the auto mkt include
 
  -  a stagnate US & world econ
 
  -  Am consumers turned to smaller cars & the Am auto mfr did not adapt
 
  -  foreign cars were more fuel-efficient & of higher quality than US cars
 
  Japan exports 4 mm more cars than it imports while the US imports 3 mm more than it exports
 
  35% of the production of GM cars & 62% of Fords takes place outside of the US primarily but not exclusively in the area of subassembly mfr
 
  So called "American cars" contain a substantial proportion or even a majority of parts made or assembled overseas (Dickens, 1992; Milkman, 1997)
 
  See Also:  The Global Assembly Line  
  The US lost mkt share in autos because Am auto mgt:
 
  -  was slow to respond to the new mkt demands for smaller, more fuel efficient cars
 
  -  preferred to make higher priced cars w/ larger profit margins
 
  -  did not respond to the Japanese challenge of higher quality & fuel mileage
 
  -  had a mgt style that established & maintained adversarial labor relations as opposed to cooperative relations   
  Am auto has long had the highest rates of layoffs, turnover, absenteeism of any major industry & such negative workplace relations have provide an insufficient base form which to compete w/ Japanese automakers
 
  Japanese automakers had hand strong, participatory workplace relations & therefore employ group production technologies such as QCCs which can employ more sophisticated machine tech such as robotics
 
  The Japanese & the Europeans have been the world leaders in developing participatory workplace relations
 
  Participatory workplace relations allow mfrs to produce higher quality products & to employ more sophisticated tech because workers & more committed, more technologically developed, & innovative
 
 
 See Also:  Democratic Orgs  
 
 In the 1980s & the 1990s, several Japanese automakers have built plants in the US including the GM-Toyota plant at Fremont, CA & the Nissan plant at Smyrna, TN (Perruci, 1994, Besser, 1996)  
  Other plants are located in OH, KY, IN, & MI  
  US auto mfr have learned innovative production strategies from Japanese auto transplant plants  
  The contrast w/ work systems in traditional US plants & in Japanese auto transplant plants is readily apparent  
  At the GM-Toyota plant in CA, workers have the right to stop the assembly line if problems arise, something strictly forbidden in traditional Am plants  
  The challenge of world competition has promoted long needed changes in Am auto mfr (Sirianni, 1987)  
  A new contract btwn Buick & the UAW stipulated a "pay-for-knowledge" plan where workers are compensated according to the number of jobs for which they are qualified, rather than solely on the basis of their current job  
  At a Chrysler plant in Detroit, workers are organized into "teams" but they are balking at cheering for Chrysler, Japanese-style each morning (Walsch, 1985b)  
  Many participatory workplace relations have emerged from the struggles of the auto industry in the tumultuous 1980s & 1990s  
  Workers at the Japanese transplant facilities report mixed reactions to the new work systems  
  While they like many of the new forms of worker involvement, they also report high levels of pressure, stress, & resulting injuries (Graham, 1995)  
  Canadian workers similarly report resentment about erosions of union power & worker solidarity that are sometimes experienced in Japanese auto plants (Rinehart, et al, 1997)  

 
Internal
Links

Top
 Outline on the    Global Auto Industry
External
Links
  DURING THE POST INDL ERA, THE GLOBAL AUTO IND DOMINATES MEANING THAT IN ALL MAJOR NATIONS THERE IS SIGNIFICANT FOREIGN COMPETITION  
  During the 1980s, Japanese companies created over 10,000 jobs in TN  
Blank
 The development of the early auto industry, i.e. pre globalization, was characterized by an industry of small, entrepreneurial businessmen & inventors  
  In the pre globalized auto ind, many carriage makers, bicycle makes & mechanics were early innovators  
  GLOBALIZATION DEVELOPED AS RATIONALIZED PRODUCTION SYSTEMS MATURED   
  The early success of American auto industry is traceable to pioneering efforts in the creation of formally rational systems  
  There were FOUR early innovations in the formal rational systems of the auto ind, including:
a.  bureaucracy, as developed by Weber
b.  scientific management, as developed by Taylor
c.  the assembly line, as developed by Ford
d.  the divisional system, as developed by General Motors:  Sloan
 
Link
 Japanese industrialists transported rational system techniques to Japan   
  General MacArthur & an industrialist named Demming to head the Japanese Ministry of Industry & Technological Innovation ( MITI )  
  Demming also brought QCC's to Japan because the idea was rejected by Am auto makers  
  The Japanese added TWO formally rational systems, which Americans have since adopted, including: 
a.  the just in time inventory system
b.  permanent employment		  
  The Japanese also developed the other three types of rational systems including substantive rationality, intellectual rationality, & practical rationality  
  See Also:  Rationalization  
  a.  Substantive rationality is seen in the Japanese auto ind in that they utilize the value of subordination of the individual to the group & even subordination of the individual to the corporation  
 
 Japanese wkrs were motivated by assembly line controls & group solidarity  
  The Japanese worked hard not only because of the demands of the formally rational assembly line such as surveillance, pay incentives, etc.  
  J wkrs also wanted to advance the interests of their work group & the corporation  
  b.  Intellectual rationality is seen in the Japanese auto ind in that they  created & used more engineers than the US  
  Japanese accorded a significant role to intellectual rationality in the auto industry as a result of their societal value for learning & education  
  c.  Practical rationality is seen in the Japanese auto ind in that they developed QC's to involve line workers in product improvement  
  JAPANESE AUTO MAKERS RATIONALIZED UTILIZATION OF PROFL WKRS ON THE PRODUCTION LINE VIA WKR PARTICIPATION TECHNIQUES   
  Japanese auto developed QC's to involve line workers in product improvement  
  Japanese utilized practical rationality via Quality Circles aka Quality Control Circles  
  Workers meet, usually on their own time & discuss ways to improve production in their day to day activities  
  Developing all 4 forms of rationality means developing systems, corporate values, & hi & low skilled workers  
  Thus, the Japanese utilize the skills of their least skilled workers & their best trained workers  
  Americans have largely ignored both sets of workers, expecting little more than a mindless eight hour work day  
 
 Japanese auto outperformed US auto by developing hyper rational systems while Americans continued w/ formally rational systems  
  Japanese industry exploited all four types of rationality to create a hyper rational system  
  Americans relied almost exclusively on formal rationality  
  Hyper rationality allowed Japanese auto to catch up to & then far outdistance American auto in the 1970s & 80s  
  The US auto inc began to copy some Japanese techniques & so begin to catch up... to a limited extent  
  Hyper rationality in the auto industry was one major factor that allowed it to develop into a global system  
  See Also:   Rationalization & Hyper rationalization  
  See Also:  Globalization  
  The global auto industry produces 40 mm vehicles yearly from 10 global corps  
  GLOBALIZATION OFTEN MEANS MERGERS & BANKRUPTCIES AS FORMER COMPETITORS JOIN FORCES, & SOME PRODUCERS GO OUT OF BUSINESS   
  GM, Ford Toyota, VW, Nissan, Fiat, Peugeot Citron, Honda, Mitsubishi, Renault, Chrysler (which merged w/ Mercedes in 2000)  
  In 1996, the top 41 largest auto mfr's had 244 strat alliances to share parts & establish joint ventures  
 
 Ford Motor Company developed the first global assembly line  
  The Ford Fiesta was the first in series of Fords "world cars"  
  The "World Car"  became a negative selling point during the deindustrialization of the 70s  
  Some Fords are now produced in 15 nations on 3 continents  
  Ford's world car is designed to sell in Europe, So Am, No Am, Asia  
  Ford's world car is assembled in several location from parts manufactured in an even greater number of locations  
  Fiesta followed by Escort, Mondo, Contour  
  Escorts are made & assembled in 15 countries in 3 continents  
  Ford's international subsidiaries once were independent, now are functionally integrated  
  See also:  Fordism  
  Volkswagen's global assembly line produces in 16 nations on 5 continents  
  The Rabbit / Golf, which has been in production since 1975, uses hub model w/ the main plant in Wolfsburg, Germany  
  VW sends parts for the Rabbit / Golf & finished vehicles to:
VW Canada  VW Autolatina, Brazil VW Nigeria, Africa  VW Japan 
VW No Am in Penn VW Autolatina, Argentina VW So Africa Also expanding to Delhi, India
VW of Mexico  VW Brussels  VW Shanghai, China 
 

 
Internal
Links

Top
Outline on the   Global Assembly Line
External
Links
  The international division of labor makes the global assembly line possible  
  Most global corporations are conglomerates who produce a variety of products  
  In 1973, global stagflation, a combination of stagnated a economy (recession) & inflation, resulted as OPEC raised oil prices  
  As of the 2000s, there has never been another case of global economic woes  
  In 73, global strategies did not seem so efficient  
  Global commodity chains are global networks of 
-  labor
-  raw materials
-  production processes
-  markets
which results in delivery of finished product		  
  Commodity chains have grown longer, into global dimensions  
  There are FOUR advantages of global assembly lines  
  1.  One advantage of a global assembly line is that standardized global production maximizes the economies of scale  
  Corporations push the  creation of global, standardized markets  
  2. One advantage of a global assembly line is the utilization of least cost methods  
  Wages in core countries  are 25 to 75 times the wages in peripheral countries
$50,000 = $25/hr in core
    2,000 =     1/hr in periphery		  
  Thus prod assembly can be done where labor is cheapest, while accounting for nearness to raw materials & markets  
  3. One advantage of a global assembly line is that mfrs gain independence from single source suppliers  
  Today business to business e-bidding is the fastest growing sector of internet  
  Business to business e-bidding was hailed by the then Fed Reserve Chairman Alan Greenspan as a great efficiency creator  
  W/ business to business e-bidding, corp's put a bid on the internet for the cheapest product or service  
  Corps used to have loyalty to suppliers, but that is fading  
  4.  One advantage of a global assembly line is that strategic alliances are possible  
  Global assembly lines have FOUR advantages, including:  
  a.  allowing transnational corps to link up w/ local "insiders" to tap into local markets  
  b.  quick, inexpensive means to exchange info about technology, products, & processes  
  c.   the reduction of the costs of product development  
  d.  spreading out the costs of market research  
  Peripheral govts encourage subcontracting to their nation's businesses  
  Peripheral govts  offer incentives to transnational corps including:
-  tax holidays
-  export processing zones (EPZ's)
-  minimization of govt bureaucracy
-  no foreign exchange controls
-  plentiful factory space, etc.		  
  The US & the World Bank back regimes that support globalized production & have pushed for austerity programs to make labor cheap in peripheral countries  
  The desire of many peripheral countries is to follow path of economic development from labor intensive industry to capital intensive, hi tech goods as have Singapore & So Korea  

 
Internal
Links

Top
 Outline on the  Steel Industry
External
Links
  Since the 1970s, the steel industry, like auto, textiles, & other industries has suffered the effects of: 
 
  -  tech replacing labor & old tech  
  -  globalization  
  -  deindustrialization  
  -  global trade agreements
 
  Steel has downsized since the 1980s  
 
 While the declining demand for steel in the US is partially to blame for the steel industry's downsizing, the effects of foreign competition are also significant
 
  Several large integrated steel producers have exited the industry or merged w/ others  
  In the steel industry, since the beginning of it's decline, 25% of capacity & 50% of the jobs were lost were lost, costing 250,000 steel workers their jobs  
  Wages fell dramatically in the steel industry  
  National level pattern bargaining has been re-established in the steel industry  
  New contracts in the steel industry match compensation w/ firm performance  
  Steel is used to build industrial plants, but because of deindustrialization in many US industries such as autos, textiles, etc., fewer plants are being built, & therefore there is less demand for steel
 
  Demand for steel in the industrializing nations, i.e., semi peripheral nations such as Korea, Taiwan, Mexico, Brazil, etc. is increasing but these regions are producing for their own mkts, & even exporting to the US
 
  Because of the cost of transport, it is difficult to ship steel very far
 
  Production of steel is vertically integrated, i.e., closely linked to the mining of iron ore & the production of coke
 
  Production of iron ore & coke, the production of steel, & the production of finished steel products often occur at sites in w/in the same region
 
  It is difficult to globally separate vertically integrated production processes, never the less, it is being done to a limited extent
 

 
Internal
Links

Top
 Outline on the  Steel Industry & Globalization
External
Links
  Lack of investment is a major problems in the US steel industry which is compounded because said lack of investment is not only a lack of response to global competition, it is a negative response to global competition
 
  W/ few competitors after WW 2, US steel used their profits to build conglomerates, i.e. buy firms in unrelated industries to diversify a corp's investments
 
  US steel conglomerated rather than upgrade & expand their steel capacity because like US automakers, they did not take the threat of foreign competition seriously
 
  US Steel Corp (USS), conglomerated & became USX
 
  USS made all of its profits from steel or integrated functions, but today makes only 11% of its operating profits in steel
 
  See Also:  USX         www.usx.com
Link
  USX systematically shifted operations to other areas, including oil exploration, chemicals, & real estate (Shorrock, 1983)
 
  As a result of conglomeratization & the lack of investment in steel production, the Am steel industry operates w/ outdated tech, & dilapidated equipment
 
  "Vintage capital" & tech performs poorly against new tech in German, Japanese, Korean, etc. steel production
 
  Since WW 2 Germany & Japan built new, "greenfield" operations
 
  The Germans, Japanese, et al have also outpaced Am mfr in new tech as well as in participatory workplace relations
 
  For many leaders in govt, the military, & industry, the loss of Am steel production capacity is especially disturbing because steel production is a foundation for both industry in general, & for the national defense
 
  Dependency on foreign steel puts a country in the same position as dependency on foreign oil in that a nation can be held hostage to foreign production & price gouging
 
  In a war situation, a nation that is dependent on foreign steel would be extremely vulnerable
 
  W/ respect to steel, the US is now vulnerable to foreign steel price control & to war time boycotts
 
  Employment in Am steel declined from 450,000 in 1977 to 200,000 by the 1990s & has slowly declined since then
 
  By 1990, the largest producer of steel was no longer USS, it was Nippon Steel of Tokyo, Japan
 
  Nippon Steel produces 2.5 times as much steel as USX
 
Link
 The Table on Steel Producers, 2006 shows that the US has only one firm remaining in the top ten
 
Link
 The Table on Steel Producing Nations, 2005 shows that the US remains one of the largest steel producers, w/ about 1/8th of the steel of the top 10 producers & about 8% of the world total  
Link
 The Table on Out of Business Steel Producers, 2006 show that the US has lost many good firms  
  One successful method of meeting global competition is to produce specialty products that can out compete foreign corps  
  W/ the decline of USX & other large steel producers in the US, smaller firms called mini mills emerged, specializing in various steel products  
  Mini mills & small firms are more able to utilize new physical tech & new participatory workplace relation  
  Mini mills are more flexible, utilize rapidly changeable tech, & have the empowered workforce to adapt to new mkts & using tech in new ways  
  Women have made progress in the steel industry even in the face of declining employment  
  Women in steel report less sexual harassment than women in traditionally female occupations (Deaux & Ullman, 1983)  
  One reason that women experience less sexual harassment in traditionally male occupations as steel is that women work w/ men & peers & peer relations, team work, etc. builds respect & solidarity among participating members  
  For example, female clerical workers are supervised by male mgrs, & subordination in work roles encourages sexual harassment  
  While most women in steel work as peers w/ men, some 20% are janitors & other lower level occupations, & are thus subordinate to men & more likely to experience sexual harassment  
  Thus, while the gender barrier is broken in steel, occupational gender segregation w/in the industry remains a problem  

 
Top
  
The Table on Steel Producers, 2006
Wiki
 
Company Name
mm Tons Produced
Nation
1.
 Arcelor-Mittal
109.7
Global
2.
 Nippon Steel
32.0
Japan
3.
 POSCO
30.5
South Korea
4.
 JFE
29.9
Japan
5.
 Tata Steel-Corus
28.2
India
6.
 Shanghai Baosteel Group Corporation
23.8
China
7.
 United States Steel Corporation
19.3
United States
8.
 Nucor Corporation
18.4
United States
9.
 Riva Group
17.5
Europe
10.
 ThyssenKrupp
16.5
Germany
11. Tangshan
16.1
China
12. Shagang Group
14.6
China
13. EvrazHolding
13.9
Russia
14. Gerdau
13.7
Brazil
15. Severstal
13.6
Russia
16. Sumitomo Metal Industries
13.5
Japan
17. SAIL
13.4
India
18. Wuhan Ironn and Steel
13.5
Japan
19. Anshan
11.9
China
20. Magnitogorsk
11.4
Russia
21. Shougang
10.5
China
22. Jinan
10.4
China
23. Laiwu
10.3
China
24. China Steel
10.3
Taiwan
25. Maanshan
9.6
China
26. Imidro
9.4
Iran
27. Techint
8.7
Latin America
28. Usiminas
8.7
Brazil
29. Novolipetsk
8.5
Russia
The Table on Steel Producers shows that the US has only one firm remaining in the top ten

 
Top
  
The Table on Steel Producing Nations, 2005
IISI
 
Nation
mm Tons Produced
1.
 China
349.4
2.
 Japan
112.5
3.
 United States
94.9
4.
 Russia
66.1
5.
 South Korea
47.8
6.
 Germany
44.5
7.
 Ukraine
38.6
8.
 India
38.1
9.
 Brazil
31.6
10.
 Italy
29.3
11. Turkey
21.0
12. France
19.5
13. Taiwan, China
18.6
14. Spain
17.8
15. Mexico
16.2
16. Canada
15.3
17. United Kingdom
13.2
18. Belgium
10.4
19. South Africa
9.5
20. Iran
9.4
 
Total: 
1003.7
 
World Total:
1,131.8
The Table on Steel Producing nations, 2005 shows that the US remains one of the largest steel producers, w/ about 1/8th of the steel of the top 10 producers & about 8% of the world total

 
Top
  
The Table on Out of Business Steel Producers, 2006
Wiki
 
Company Name
Nation
1.
 Bethlehem Steel (Assets bought by ISG in 2003, which merged w/ Mital, now Arcelor Mittal
US
2.
 British Steel (merged w/ Koninklijke Hoogovens (NL)  in 1999 to form Corus)
UK
3.
 Cockerill-Sambre
FR?
4.
 Hoesch Stahl AG
Ger
5.
 Koninklijke Hoogovens (merged w/ Koninklijke Hoogovens (NL)  in 1999 to form Corus)
NL
6.
 National Steel Corp
US
7.
 Republic Steel
US
8.
 Weirton Steel  (was a cooperative)
US
9.
 Youngstown Sheet & Tube
US
10.
 Northwestern Steel and Wire
US
The Table on Out of Business Steel Producers show that the US has lost many good firms

 
Internal
Links

Top
 Outline on the   Textile Industry
External
Links
  Since the 1970s, the steel industry, like autos, textiles, & other industries has suffered the effects of
 
  - tech replacement of labor & old tech  
  - globalization  
  - deindustrialization  
  - global Trade Agreements
 
  Textiles is one of the largest worldwide industries, employing over 25 mm workers & millions of unregistered workers in factors & sweatshops & at home
 
  Textiles production increased fourfold from 1950 to 1990 & has continued to grow at that pace up to 2000
 
  The development of tech has resulted in major changes in the nature of fabrics, w/ synthetics growing to almost half the total production
 
  Synthetics include fibers derived from wood productions such as rayon & acetate, & petrochemical based fibers, such as polyester, acrylics, nylon, nomex, kevlar, & cloth woven from metals, & carbon
 
  The US is the largest producer of synthetic fibers in the world, w/ a 25% share of production
 
  The US share of synthetic fiber production has dropped from 32% in 1970
 
  Textile employment has fallen in the US & other industrialized nations & increased in peripheral nations 
 
  Peripheral nations who are increasing their textile production include Indonesia, Bangladesh, & Sri Lanka
 
  Semi peripheral nations who are increasing their textile production include Taiwan, Korea, & China
 
  Russia & European nations have increased their textile production by developing technologically advanced materials & production techniques
 

 
Internal
Links

Top
 Outline on  Textile Mills
External
Links
 
 Early textile mills emerged out of the putting out proto factory system 
 
 
 See Also:  The Putting Out System  
 
 After textile production transitioned from putting out facilities to the early textile mills, working conditions & workplace relations degraded
 
 
 As the early textile mills became large scale mfr plants, they became notorious for unsafe working conditions due to long hours, violent supervisors, dangerous machinery, as well as unsafe env conditions 
 
 
 In textile mills, unsafe env conditions occurred from a number of sources but primarily from air contamination in the form of textile particles in the air, hence "cotton lung" & other occupational diseases
 
 
 Today, working conditions are generally much better but are dependent on the effectiveness of govt regulation
 
 
 Govt reg is sporadic & has been decreasing since the 1980s when the Reagan Admin, which has become a govt legacy, began the policy of govt downsizing which has effectively reduced regs
 
 
 Reduced govt reg has resulted in the increase of sweatshops
 
 
 See Also:  Sweatshops
 
 
 Today only a small proportion of textile & apparel mfr requires skilled labor, about 12% of workers in US textiles
 
  The typical textile worker is the polar opposite of free craftsperson in that they are unskilled & almost totally controlled by the equipment they operate  
 
 The unskilled nature of textile production has facilitated it's spread to less industrialized nations
 
 
 Today, unskilled textile workers have typically been viewed as acquiescing to the demands of their work w/ little resistance
 
  See Also:  Workers' Resistance to Control  
 
 The acquiescence of textile workers has not always been the case as seen in the waves of unionization among textile workers in the 1930
 
 
 Today, textiles is the least unionized mfr industry
 
 
 Unionization declined in textiles because of the strategy of the industry to export jobs & lower wages, in that plants often had the choice of give up the union, accept lower wages, or see the plant move overseas
 
 
 Even when workers gave up the union & accepted lower wages, plants were eventually closed & moved overseas
 
 
 Southern plants resist unionization because whites want to protect their special treatment, & blacks are relatively powerless, & thus the the workers protect the existing system of low wages
 
  Textile plants in the South are a classic case of the split labor mkt theory  
  See Also:  Split Labor Mkt Theory  
  Textile mills have laid off workers as a result of their loss of mkt share  
  The US now imports a large share of clothing & shoes from such areas as Mexico & Pacific Rim nations  
  The US has also lost ground to European & Japanese mfrs using trade assoc, coop banks, apprenticeships, etc. all of which are not practiced in the US because US laws interpret them as a constraint of trade  

 
Internal
Links

Top
 Outline on  Textile Sweatshops
External
Links
  Sweatshops are shops in which workers are employed under the sweating system
 
  The sweating system is the industrial method involved in employing workers at low wages, during overlong hours, under unsanitary, in unsafe or otherwise unfavorable conditions, often w/ reference to work let out by contract to middlemen, to be done in inadequate workshops or at the home of the workers
 
  The archaic meaning of sweat is to exert one's self strenuously, to work hard, labor, or toil
 
  A sweatshop usually is illegally organized; operates in the underground economy; employs workers at low wages & long hours; operates in unsafe working conditions; uses exploited groups of people such as people w/ no options for other jobs, immigrants, women, & children
 
  Sweatshops were originally a result of the putting out system, & both were then replaced by the early factory system
 
  In the core nations, factory conditions eventually improved due to the Labor Mvmt & public outcry from books & exposes such as Upton Sinclair's The Jungle & from workplace tragedies such as the Triangle Fire
 
  Sweatshops have reemerged in the textile & garment industries in the core nations as a result of the competitive of globalization & as a result of the "unregulation" of much of the economy which was caused by govt downsizing which began under the Reagan admin in the early 1980s  
  In the 1970s there were fewer than 200 garment sweatshops, by the 1980s there were btwn 3,000 & 4,000 sweatshops in NY employing 50 to 70 K workers
 
  Today sweatshop workers are often illegal immigrants from the Caribbean, Latin Am, & the Orient
 
  Ross & Trachte, 1983, consider sweatshops to be a vital link in the processes of corp, global capitalism
 
  Sweatshops have sprung up on the West Coast employing Asian & Latin Am illegal immigrants
 
  College students have become aware of the roll of sweatshop labor in the production of popular brands of clothing because of such orgs as the United Students Against Sweatshops
 
  See Also:  United Students Against Sweatshops             www.usanet.org
Link
  Some mfr's such as Nike have responded by establishing regulations limiting sweatshop labor, child labor, unsafe working conditions, & other conditions that core nations would consider to be exploitative
 

 
Internal
Links

Top
 Outline on the  Chemical Industry
External
Links
  Chemical production is unique when compared to autos, steel, & textiles because it requires a relatively high percentage of skilled workers, high capital investment, it is a continual process industry, & it is an HRO
 
  In proportion to it's high capital investment, chemical production requires a low contribution of labor
 
  The major duties of the workers, many of whom are engineers, include equipment maintenance & deal w/ problems
 
  Chemical workers have a low level of routine work
 
  The continual process, flexible production is the norm in the chemical industry but in other industries it has not replaced assembly lines & small batch production
 
  In most industries, computerization & robotics have a greater effected than continuous process technology
 
  Chemical plants are considered to be High Reliability Orgs (HROs) because an accident can be extensive in it's cost of life or property
 
  See Also:  HROs  
  See Also:  Industrial Disasters:  Bhopal  
  Chemical plants are considered to be HROs because they maintain an org system of near zero errors
 
  Chemical plants are considered to be HROs because they have a high ratio of skilled workers
 

 
Internal
Links

Top
 Outline on  Stagnation, Globalization, & the New World Order
External
Links
 
 INDUSTRIES IN THE CORE HAVE STAGNATED OR DECLINED DUE TO THE INTL COMPETITION OF GLOBALIZATION; BUT NEW ECON SECTORS HAVE GROWN, E.G. HI TECH & SERVICES  
  Many mfr industries in No Am & in other industrialized nations have stagnated in recent decades
 
  One reason for the stagnated mfr industry is because of increased international competition
 
  International competition has increased because of the natural cycle of capitalism & because of the greenfield advantages of the post WW2 nations & the newly industrialized semi peripheral nations
 
  After WW2, European & Japanese firms rebuilt new, "greenfield" factories in the 1950s & 60s 
 
  By the 1970s, the greenfield factories of Europe & Japan were online & increasing the competition for Am firms
 
  The peripheral & semi peripheral, 3rd world nations are pursuing the path of industrialization
 
  Some nations have had only limited success, while others such as Mexico, Taiwan, So Korea, & Brazil have won mkt share
 
  The newly industrialized nations are suffering the same decimating effects of early industrialization as did the nations of the first wave of the industrial revolution including Europe, the US, & Japan
 
  Today the newly industrialized nations have horrible worker injury rates, unregulated working hours & conditions, & uncontrolled pollution 
 
Link
 The Table on Decline of US Mfr Workforce & Increase of US Overseas Production demonstrates that the US lost over 1/3 of a million mfr jobs in the 1980s
 
  THE TRANSFORMATION OF THE ECON FROM INDUSTRY TO HI TECH & SERVICE HAS RESULTED IN LOWER WAGES & LESS JOB SECURITY  
 
 Since the onset of globalization, real income for the average Am has decreased as costs to local communities has increased in the wake of large scale layoffs & plant closings (Edwards, 1993)
 
 
 Since the onset of globalization, new jobs that are created in the service sector pay less than the jobs lost in mfr & other high paying sectors
 
 
 In March of 2004, after months of low wage growth, averaging less than 100 K new jobs / mo., 308 K new jobs are created, but none in the higher wage mfr sector
 
  Many lost mfr jobs are replace by employment growth in smaller firms; however, many of these new jobs have a short life span  
  Growth in the small firm sector has been produced by start ups of subsidiaries of large corps in the process of seeking out locations w/ cheaper labor costs (Vallas, 2001)  
  The growth of the service sector has also provided new jobs, but these generally pay much less than jobs in mfr & contribute to the nation's income  
  Displaced auto workers lose an average of 44% of their previous income in the 2 yrs after their layoff & workers in steel, meat packing, & aerospace report similar losses  
  See Also:  The Declining Middle Class  
 
 Under globalization, the downward pressure on wages & benefits, i.e. give backs, are accompanied by attacks on Social Security, education & other social programs secured by the middle- & working classes during the post WW 2 boom years (Levine, 1995)
 
  Give backs create a two tiered wage structures where new workers work under a lower wage & benefits scale
 
  NEGATIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE ARE:  CLOSED BUSINESSES, LOW WAGES, LESS JOB SECURITY, DECLINE OF THE INNER CITIES & 'RUST BELT' REGION, DECLINE OF ORGANIZED LABOR, & SHRINKAGE OF THE MC, ETC.   
  See Also:  The Effects of Globalization   
  For the core, negative effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  businesses have closed & sometimes, entire industries have shut down  
  2.  wages have declined in the core nations since the 70s   
  3.  wkrs have lost job security in that there are more temp jobs & fewer full time jobs are expected to be permanent / careers   
  4.  closed businesses, low wages, & temp work have decimated the inner cities resulting the   
  5.  closed businesses, low wages, temp work, & the decline of cities have resulted in entire regions, esp the rust belt of the NE, being decimated  
  6.  organized Labor has declined to less than half its former membership because of the decline of industries which were traditionally unionized   
  7.  overall, the MC has shrunk, generally moving people downward, as a result of all the negative factors of deindustrialization:  closed businesses, declining wages, loss of job security, the decline of inner cities, & the decline of entire regions like the rust belt   
  NEGATIVE EFFECTS OF INDUSTRIALIZATION FOR THE SEMI PERIPHERY & THE PERIPHERY INCLUDE SWEATSHOP LABOR CONDITIONS, LACK OF / LOW TAXES & ROYALTIES, POLLUTION, UNPLANNED ECON DEV, DISPLACEMENT, LOSS OF TRADL ECONS, ETC.   
  For the semi periphery & the periphery, negative effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  sweatshop labor conditions such as poverty wages, child labor, unsafe conditions, unregulated hazardous materials, forced labor, abusive supervision, no unions, no benefits, no pensions, etc.   
  2.  corps operating in a host country w/o returning any benefit to that country in the form of taxes, royalties, infrastructure, etc.   
  3.  non existent envl laws which is resulting in rampant pollution & the creation of haz mat dumping grounds   
  4.  unplanned econ dev whereby shanty towns & indl waste lands co exist   
  5.  industrialization / modernization often allows corps & govts to 'buy' or take land by eminent domain, thus displacing peasant pops that had lived on the land for gens  
  6.  that when people leave their tradl lives to work in the factories, the tradl econs which had supported them declines & then collapses   
  Because of the cyclic nature of industry, eventually there are econ downturns / busts, & because the dev of ind eliminated tradl econ of ag, hunting, gathering, crafts, etc., the people often have no econ w/ which to sustain themselves   
  POSITIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE INCLUDE RECORD PROFITS FOR CORPS & STKHLDRS, CHEAPER PRODUCTS, TRANS TO NON POLLUTING ECON, THE CREATION OF A GLOBAL ECON & CULTURE, ETC.   
  For the core, positive effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  corps have experienced record profits & the stk mkt has soared, which mostly benefited the UC & the UMC  
  2.  many consumer products are cheaper, & there is also a wider variety   
  3.  while tradl heavy, polluting industries have declined, new, hi tech & services businesses, which generally do not pollute, have grown   
  4.  both the global econ & culture have grown which may have indirect positive effects such as greater understanding, less conflict, more opportunity, more variety, etc.   
  POSITIVE EFFECTS OF INDUSTRIALIZATION FOR THE SEMI PERIPHERY & THE PERIPHERY INCLUDE:  JOBS, ECON DEV, CONSUMER PRODUCTS, ED, GENERAL MODERNIZATION, ETC.   
  For the semi periphery & the periphery, positive effects as a result of the deindustrialization, which is caused by globalization, include:   
  1.  the creation of jobs w/ wages; many in the semi periphery & the periphery have only produced for a subsistence econ, but w/ the dev of ind there is at least the possibility of getting ahead   
  2.  econ dev, the dev of a modern econ transitioning out of hunter gatherer & ag econ to a mod, ind econ   
  3.  the opportunity to buy mod consumer products including TV, healthcare, 'modern food,' mod clothes, etc.   
  4.  jobs, a tax base, econ dev, etc. all create the possibility of a society developing an edl system for its youth & young adults   
  5.  all the benefits of modernization including jobs, products, etc. as well as the mod way of thinking, the mod lifestyle, etc.   
  The positive effects of industrialization for the semi periphery & the periphery are realized only when the govt of the host nation & the corps intentionally plan / design for positive effects, otherwise the negative effects may predominate   
  Some semi periphery & the periphery nations have successfully implemented policies that allow the benefits of ind to be realized, but many have not   
  The govts of semi periphery & the periphery nations sometimes have a problem w/ corruption resulting in the elites of the semi periphery & the periphery nations realizing profits while the people are exploited   

 
Top
  
Table on Decline of US Mfr Workforce & Increase of US Overseas Production
HS 0208
Company
1980 employment
1993 employment
Jobs Lost
Jobs Moved Overseas
GM
517
360
157 
  
GE
402
268
134 
5 in the 70s
IBM
335
301
34
  
Ford
123
89
40
  
Westinghouse
123
89
34
  
Boeing
109
133
+24 
  
Chrysler
77
92
+15 
  
Caterpillar
62
37
25
  
Amoco
45
35
10
  
RCA    
14
5
 
All figures in thousands
  
395 net job loss
  
The Table on Decline of US Mfr Workforce & Increase of US Overseas Production demonstrates that the US lost over 1/3 of a million mfr jobs in the 1980s

 
Internal
Links

Top
 Outline on  Economic Policies on Globalization
External
Links
 
 The problems of globalization are many & the econ policies of govts & the strategies of multi-national & supra-national corps may either help or exacerbate those problems... or both
 
 
 See Also:  Deindustrialization  
 
 See Also:  Stagnation, Globalization, & the New World Order  
 
 American firms respond inadequately to the heightened competition
 
  For most elites & corps, the econ policies & business strategies on globalization appear to be rational; i.e., good for their profits  
  For most non elite classes & nations, the econ policies & business strategies on globalization appear to be irrational, i.e., bad for their economies  
  Rationality is a world view that does not always operate universally in that what is rational for one, may not be rational for another  
  See Also:  Rationality  
  See Also:  Epistemology & Theories of Knowledge  
  In general, econ policies include both govt laws & regs as well as major business strategies  
 
 Am firms respond to globalization w/ FOUR main strategies, including exporting jobs, driving down wages, deskilling, & paper entrepreneurialism
 
 
 Am firms began to respond directly to globalization in the 1990s by increasing product quality, focusing on the development of human capital, & increasing investment in workers' training & R & D
 
 
 Paper entrepreneurialism (Reich, 1992) is the manipulation of balance sheets, profit margins, stock prices, etc. in lieu of the development of profit producing assets such as capital investment, tech, & people
 
 
 Paper entrepreneurialism occurs when corps buy & sell companies to make a profit rather than building solid businesses
 
 
 Paper entrepreneurialism & even globalization itself depend on the increased, worldwide mobility of capital
 
 
 The mobility of capital has been increased by FOUR factors, including the technology of the internet & communication systems, by the globalization of banking & financial systems, by the development of transportation systems, & by the changes to laws & regs allowing for mobility of capital
 
 
 See Also:  Global Banking  
 
 Few laws & regs have been developed to deal w/ the globalization of banking & trade & most have been written to streamline such transactions for the elites w/ little thought to security or how such transactions affect the lower classes
 
 
 Since 9-11, there is a commitment to bringing global financial transactions under govt control, but little has been done
 
 
 The concentration of capital continues to increase, but is becoming concentrated globally as major multinational corps, that previously had some type of national allegiance, such as Chrysler, merge w/ foreign multinationals to become supranational corps w/ no allegiance to anyone except the global elites that control & own them
 
 
 Examples:  BP Amoco,  Daimler Chrysler (now just Daimler)
 
 
 See Also:   Market Concentration  
  The growth of supranational corps, the concentration of capital, globalization itself is both a cause & effect of capital mobility & the changes is laws & regs that govern such transactions  
  Large corps have the financial power & political leverage to take advantage of new worldwide networks of production & mkting  
  Historically capital was less mobile than labor because it was capital investments such as factories had a long life & could not easily be moved to a new location because the skills to build a particular local factory were also local  
  Today, capital is more mobile because factories have a shorter life & the skills to build them can be imported; e.g. little Americas in Saudi Arabia  
  Historically capital was less mobile than labor because it was risky to invest in a foreign locale because of unknown laws, because of currency exchange problems, etc., & because of the animosity towards foreigners,  
  Today, capital is more mobile because laws are being synchronized worldwide, & are well understood, & because currency exchange is now completely routinized & nearly all risk can be hedged  
  Today, there is still animosity towards foreigners, but many more nations are attempting to moderate such animosity because they understand there econ development is dependent upon it  
  Historically capital was less mobile than labor because it was difficult & expensive to ship raw materials for production, as well as finished products for sale   
  Today, capital is more mobile because global transportation systems have been developed to such an extent that anyone can ship a package anywhere in the world in a few days for under $50, & likewise it is possible to ship goods to the mkt for a very reasonable amount  
  Historically, labor was more mobile than capital because the working class had little property ownership & workers had little to lose except for the very important family network that sustained them at home  
  Historically, the mobility of labor was dependent on imperialism to subdue local populations to accept foreign labor; e.g., the European working class colonizing the US, the British colonizing India, etc.  
  Historically, despite imperialism, labor moving to a new nation was extremely risky  
 
 Today, labor is less mobile than capital because the working & middle class has an investment in their home, & because the decline of imperialism makes it difficult for a person or family to move to another country  
  Two typical corp strategies for globalization that create stagnation in the US are relocation of plants to new regions or nations & low wage businesses  
  Relocation creates tax & depreciation breaks for the new business, but the costs of new schools & public services, & moving families are externalities that must all be borne by those other than the corps  
  See Also:  Externalities  
  Part of the corp strategy of relocation is to entice communities to offer the best deal to attract companies  
  When firms relocate, the communities experiencing the closed firm also experience a lost tax base, increased welfare, crime, etc., & the closing schools & other public services  
  The low wage strategy has created a declining middle class w/ commensurate growth in lower & upper classes  
  In constant $s, average wages increased steadily in U.S. until the 70s when they peaked at $12  
  Since then they have fallen 15% to $10.  The first real uptick in wages was in 1997 when wages increased 1%  
  Will it continue?  The present generation of new workers future depends on it  
 
 The strategy of driving down the wages of Am workers is carried out through the demands for concessions from unions
 
 
 If corps can break or cow a union, they can control nearly all the labor in a region
 
 
 Threats of bankruptcy, plant closings, transference to a new region or nation, etc. back up threats to lower wages & benefits
 
 
 A key corp strategy to adjust to global competition is downsizing  
 
 Workforce downsizings are now common, & a mgr or consultant may specialize in downsizing; i.e., the hatchet man  
 
 Firms downsize core employment, force the remaining workers to do more, & subcontract many functions to other regions or nations  
  The upside of downsizing is that efficiency does often rise, but there are always the externalized costs of relocation, & sometimes the costs of overwork  
  See Also:  Externalities  
  Firms are also utilizing the flexibility strategy through matching their resources to mkt needs  
  W/ the advent of mass mfr w/ the industrial revolution, flexibility & the parallel wide choice of product types & quality had decreased w/ the decrease of small flexible producers  
  W/ the advent of flexible mfr, some of this flexibility & product choice has returned  
  As discussed above, because rationality is circumscribed, the business strategies of exporting jobs & reducing wages at home has secured profits for some firms, but this strategy is costly for the Am econ as a whole
 
  See Also:  Stagnation, Globalization, & the NWO  
  For most of the middle- & lower classes, govt policies & business strategies which a rational policy focusing on increasing productivity rather than exporting jobs & driving down wages is preferable to the current policies on globalization  
 
 What has been good for supra-national corps has not been good for the economy
 

 
Internal
Links

Top
 Outline on  Plant Closing Legislation
External
Links
 
 Many plant closures are the result of jobs exported to other nations by Am corps
 
 
 See Also:  Stagnation, Globalization, & the NWO  
 
 The purpose of plant closing legislation is to lessen the impact on all the stakeholders
 
  Plant closing legislation requires that businesses inform workers & the community in advance when they plan to close a plant  
  Most plant closing legislation in the US is limited to a few states which require 90 days notification of closure  
  In Europe, some nations require up to a year notification of closure  
 
 Stakeholders include the employees, the community, & the region & their actors including the employees' families, schools, local govts, the tax base, etc.
 
 
 Corp owners & other elites strongly oppose plant closing legislation because it often limits their mobility options & costs them profits
 
  The arguments in favor of plant closing legislation are that
 
  1.  advance notice is necessary to mitigate econ & psychological burdens
 
  2.  businesses get tax breaks & subsidies from govt & workers deserve the same
 
  3.  communities lose taxes & so they need time to prepare to mitigate the impact of loss of the tax base
 
  4.  plant closure has a multiplier effect
 
  5.  notification should be no great burden for plants
 
  The arguments against plant closing legislation are that
 
  1.  it's unconstitutional in that state plant closing legislation restrains interstate commerce
 
  2.  notification would create more unemployment because firms would avoid notification states
 
  3.  workers need no extra help because they have state unemployment compensation & job search services
 
  4.  businesses need to be free to close inefficient plants, otherwise could be destroyed competitively
 
  5.  workers are well paid & need to assume the risk of closure
 

 
Internal
Links

Top
 Outline on   Shell Corporations
External
Links
  A shell corporation is a type of holding company that is generally set up for the purpose of avoiding legal responsibility for any number of liabilities or to protect the name & reputation of another corp
 
  A holding company is a corp organized for the purpose of owning stock in & managing one or more corps
 
  A holding co is different from a parent corp in that the it generally does not conduct any operations of it's own
 
  A holding co is is a corp that owns stocks or securities of other firms, deriving income from dividends or interest yielded by these
 
  A shell corp is often called a hollow corp because it has no assets
 
  A corp can become a shell corp when it sells off its assets or transfers it's assets to another business entity
 
  Instead of investing in productivity enhancing activities such as tech innovation & job redesign, they subcontract production outside the US
 
  Thus, many of the goods we think of as being "American made" are not being made in foreign nations, w/ the Am co providing little more than the packaging & the labeling
 
  By subcontracting & hollowing out, many corps are attempting to maintain profit rates by lowering their wage base & outsourcing
 
  Jonas, 1986, notes that prosperity will require investment in human & physical resources
 
  In the financial shell game, made in America is determined by "content legislation" which determines the amount of Am input necessary to be called "Made in the USA"
 

 
Internal
Links

Top
 Outline on  Market Failures
External
Links
 
 Market failures are built in, normal functions of the mkt in which the system produces (1) Externalities or Spillovers, (2) Public or Social Goods, (3)  Mkt Instability in the form of Booms or Busts,  (4)  Unjust Distribution of Resources, (5)  the Problem of the Commons,  (6)  Mkt Assimilation  
  (1)  An externality, aka a spillover, is a benefits or cost associated w/ the consumption or production of a good or service which is obtained by or inflicted w/out compensation on a party other than the buyer (user) or seller (producer) of the good or service  
  There are both spillover benefits & spillover costs  
 
 (2) Public or social goods are mkt relationships where there is a failure to allocate any resources whatsoever to the production of certain goods & services whose output is economically justified  
 
 (3)  Mkt instability is seen in the econ cycle, which is the periodic, repetitive cycle of growth, peak, decline, & trough of econ output  
  See Also:  Unemployment  
 
 (4)  Unjust distribution of resources:  stratification  
  The distribution of resources is not a question economists usually discuss because it is often viewed as normal or functional  
 
 (5)  The problem of the commons is the mkt failure wherein public, or common land is mis utilized because everyone may benefit from it while no one is responsible for, or pays for, it  
  The landlord tenant problem is a special case of the problem of the commons where the common property is owned by one & rented by another, who is induced to mis utilize that & not be responsible for that property  
 
 (6)  Mkt assimilation, aka pacman econ, is the mkt failure whereby smaller econ enterprises are assimilated, bought up or run out of business by bigger econ enterprises, eventually leading to monopolies  

 
Internal
Links

Top
 Outline on  Externalities or Spillovers
External
Links
 
 An externality, aka a spillover, is a benefits or cost associated w/ the consumption or production of a good or service which is obtained by or inflicted w/out compensation on a party other than the buyer (user) or seller (producer) of the good or service
 
  Externalities are costs or benefits that are not included in the cost or price structure of the mkt  
 
 An external benefit, aka a spillover benefit, is the benefit obtained neither by producers nor by consumers of a production but w/out compensation by a 3rd party, including society as a whole
 
 
 An external cost, aka a spillover cost, is the cost of producing a product borne neither by producers nor by consumers of the product buy w/out compensation by a 3rd party, including society as a whole
 
  Externalities or spillovers are mkt relationships which produce the "wrong" amounts of certain goods & services  
 
 Examples of spillover benefits include the benefits to a community or a small business when a new major plant locates in a county & the benefit I receive when you are vaccinated
 
 
 Examples of spillover costs include the costs to a community or a small business when a major plant closes, & the cost I incur when you are not vaccinated
 
Link
 The Table on Externalities shows that externalities are common & gives examples of spillover benefits & costs  
 
 FOUR major areas of externalization or spillovers include the medical field, the environment, property rights, & econ development (or lack of)
 
  In the medical field, the medical costs of cigarettes are borne by the general public & not just the mfrs & users; therefore, the costs of cigarettes spillover onto everyone, even non-smokers; & since mfrs do not pay these costs they escape costs that they do not have to pay for  
  In the environment, the costs pollution of pollution are borne by the general public & not just by the mfrs & the users of the products; therefore, the costs of pollution spillover onto everyone, even people who do not use the products that are produced by polluting factories or by the polluting products; & since mfrs do not pay for the costs of pollution, they escape costs that they do not have to pay for  
  In the area of property rights, the costs of unsafe products may be borne by everyone  
 
 In the area of econ development, plant closings are encourage by the fact that large firms pay only part of the total costs entailed in moving from location to location
 
  Plant closings & relocations are externalized in that the firms pay only part of the cost while the workers & the general public experiences many of the costs  
 
 Many costs involved in plant closings are externalized & are paid by taxpayers or by individuals, especially the former employees
 
 
 Externalized costs in plant closings include tax write offs negotiated btwn the firm & the new localities in which they relocate, accelerated depreciation allowances, & utility discounts
 
 
 From 1996 to 2000, 61% of US corps in Am paid no corp taxes & 71% of alien corps in Am paid no corp taxes, & the rate of no tax payment is increasing
 
 
 Costs which are externalized to a state or local econ reduce local tax revenues
 
 
 The costs of attracting mfrs means that other taxes such as personal property taxes or sales taxes must be increased
 
  The increased taxes to pay for business subsidies create additional difficulties for communities that are trying to attract skilled labor & professional workers who are discouraged from moving to an area w/ high taxes   
  The costs of attracting mfrs reduces local revenues & then local services must be curtailed  
 
 The increased taxes to pay for business subsidies create additional difficulties for communities that are trying to attract skilled labor & professional workers who are discouraged from moving to an area w/ poor services such as parks, police, ed, etc.
 
 
 From the firms' standpoint, the pitting of one community or region against another to attract them to their community offers advantages
 
 
 In order to attract jobs, firms induce communities to offer concessions such as lower taxes, pollution standards, & other regs, & demanding subsidies, tax holidays, free infrastructure such as water, sewer, internet, roads, etc.
 
 
 Regions such as Lenowiseco have built industrial parks, offered tax breaks, low cost worker training programs, free space in buildings, tax holidays, free infrastructure, & more, all in "behind closed doors" negotiations
 
 
 Offers by regions to attract a firm may be rational to the firms & the communities but they are irrational for the industry & the nation as a whole
 
  If all businesses in an industry are receiving subsidies, then no business receives any benefits over other businesses because they all cancel each other out  
  When all businesses in an industry receive subsidies, it is like both teams in a game receiving the same amount of extra points  
 
 If all regions in a nation are offering subsidies, then no regions receive any benefits over other regions because they all cancel each other out
 
 
 The costs of attracting businesses include the costs that regions losing the businesses must pay including moving families, shutting down schools, rebuilding schools in new locations, building new streets, etc.   
 
 Federal tax codes allow much of the value of physical plant & equipment of closed factories to be counted as depreciation against income from new plants  
  The loss of jobs & the loss of social safety nets because of plant closings contribute to increased problems of poverty, homelessness, & marginality   

 
Top
  
Table on Externalities
Spillover Benefits Spillover Costs
are the benefit obtained neither by producers nor by consumers of a private product but, without compensation, by a third party (society as a whole) are the cost or the producing of a private product borne neither by producers nor by consumers of the product but without compensation by a third party (society as a whole)
are under produced in a free mkt system are over-produced in a free mkt system
Examples

vaccines
TB x rays
education
roads
infrastructure
clean air, water, etc.
environmental preservation

 Examples
smoking
obesity
unsafe products

pollution
environmental destruction

econ development subsidies
The Table on Externalities shows that externalities are common & gives examples of spillover benefits & costs

 
Internal
Links

Top
 Outline on the  Declining Middle Class
External
Links
  THE MID CLASS IN INDL NATIONS IS IN SLOW ECON DECLINE SINCE THE 1980s, W/ MORE STEEP DECLINE W/ THE RECESSION BEGINNING IN 2007   
  Pressure on jobs & wages have created a trend of a declining middle class (Braun, 1997)
 
  Mfr & construction clustered around the middle range of income & were fundamental in increasing the size of the middle class in the early & mid 1900s
 
  Mfr & construction created a prosperous working class that became upwardly mobile & created the bulwark of middle class society
 
  Today, real wages in mfr & construction, which are important occupational sectors for the middle class, are stagnant or declining
 
  Average wages increased in the US during the post WW2 era until the early 1970s when they peaked at about $12 / hr (current $$) & then by the 1990s decreased 15% to their level in the early 1960s (Census, 2000)
 
  Families compensate for declining income by women entering the workplace & by working longer hours
 
  In the 1990s, women working & increased hours increased family income 1% w/ 4% longer hours while unmarrieds have done increased income even less
 
  See Also:  The Middle Class:  Economic Strat
 
  GLOBALIZATION, THE NWO, DEINDUSTRIALIZATION, ETC. HAVE ALL CAUSED AN ECON DECLINE OF THE MID CLASS   
  The business strategies of large Am corps & the econ policies of the US govt lose jobs & slow econ growth in the US, but globally have done better
 
  What is good for large corps in a global econ is often bad for a national econ
 
  Craypo, 1986, holds that plant closings are made for reasons that affect only the firm, but which result in social costs to all affected parties, i.e. workers, unions, & communities
 

 
Internal
Links

Top
 Outline on  Solutions for Globalization
External
Links
  Current fed govt policies are important, but are inadequate for addressing the problems of globalization
 
  The Trade Adjustment Act provides some retraining benefits to workers who lose their jobs to international competition
 
  The Trade Adjustment Act is interpreted narrowly by fed admin bodies & excludes workers displaced because of Am corps moving overseas
 
  Title 3 of the Job Training Partnership Act retrains redundant workers, but a small proportion, 2%, of its budget is allocated for retraining (Hooks, 1987)
 
  In April 2004, Pres Bush announces plans for a worker retraining program that will help over 1 mm workers, but this legislation, if passed by Congress, will take time to implement
 
  The term "fair trade" connotes policies that establish common standards for the treatment of workers worldwide that allows nations to compete w/ each other w/o doing so on the basis sub-subsistence wages, unsafe working conditions, & safe & appropriate env standards
 
  Some advocates are promoting fair trade policies to address the problems of globalization in the core, the semi periphery, & the periphery, i.e. for all nations
 
  Fed legislation can enact fair trade policies in the US, but each nation must also enact similar legislation in their own country for it to be effective
 
  Many advocates recognize that the fair trade convergence of national policies must be accompanied by global policies implemented & enforced by a global authority, whether that be the UN, the WTO, the IMF, GATT, some combination of these, or a new global body  
  Policy options to ameliorate the effects of globalization include extending the Fair Trade & Tariff Act (FTT Act)
 
  The Fair Trade & Tariff Act prohibits a trade w/ nation w/ whom the US is trading if the nation country expropriated Am property, or if the nation is engaged in drug trafficking
 
  Recently many nations, including Venezuela, Turkey, & Afghanistan have been under scrutiny for violation the the FTT Act, but have been shepherded through because of their strategic importance to the US
 
  In 1984, the AFL-CIO proposed an "international workers' rights" clause which was added by Congress to the FTT Act
 
  The AFL-CIO's "international workers' rights" in the FTT Act clause provides workers w/:
 
  -  the right to organize & bargain collectively
 
  -  the right to safe & healthy working conditions
 
  -  minimum age requirements
 
  -  a minimum, living wage 
 
  -  maximum hours requirements  
  The purpose of the AFL-CIO's "international workers' rights" in the FTT Act would raise the standard of living of all workers & level the playing field for workers around the world
 
  The AFL-CIO's "international workers' rights" in the FTT Act is spelled out by the International Labor Org (ILO)  
  See Also:  The ILO Homepage        www.ilo.org
Link
  The FTT Act covers only 5% of imports & should be extended to the entire range of US trade  
  The FTT Act's international workers' rights clause is largely ignored by govt officials who have enough political trouble enforcing the expropriation & drug clauses of the act  
  As seen in the anti globalization protests, the largest of any type of protest since the Vietnam War, many people are disconcerted w/ the actions of several international govt bodies including the World Trade Org (WTO), the World Bank, & the International Monetary Fund (IMF)  
  These nonelected global instits open mkts & promote the free flow of trade, but this is often at a cost to those at the bottom of the global strat system  
  The global trade instits are reluctant to implement policies that provide protections for workers or for the env, believing in a global, capitalist, trickle down theory which holds that capitalism & free trade will eventually improve wages, working conditions, & the env  
  The global trade instits have fostered free trade, accelerated the competition of workers in different nations w/o providing any framework establish minimum standards of child labor, safety, or workers' rights  
  See Also:   
  -   The WTO Homepage                 www.wto.org
Link
  -   The Worldbank Homepage        www.worldbank.org
Link
  -   The IMF Homepage                   www.imf.org
Link

The End
 
Top