Economic Institutions

Major social InstitutionsSocial Dimensions of Education

Economic InstitutionsSocial Dimensions of Education

Outline

Economic InstitutionMicroeconomics and MacroeconomicsBasic Economic ProblemsPhilippines Social HierarchySocioeconomic MobilitySocioeconomic Stratification and its PerspectivesSociological Analysis of Stratification and Class

Economic Institution

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Economic institutionHuman behavior is mainly concerned with the satisfaction of material wants. It is centered on the task of making a living, the most absorbing interest of man. To that end, man in all ages and among all classes struggle to bring about changes in the environment.

Economic institutionThe changes that have taken place and are taking place in the Philippines are the result chiefly of the interplay of forces in our efforts to improve our material well-being. Our mode of living centers on the acquisition of wealth in order to satisfy our wants and this aspect of mans activities constitutes the field of economics.

Economic institutionExamples of economic activities are earning money, buying goods and services, putting up a business, or saving money in the bank. We cannot isolate ourselves from economics because our physical existence depends on it. We cannot live without production and consumption.

What is Economics?

A science concerned with the process or system by which goods and services are produced, sold, and bought.A study of how we make decisions in a world where resources are limited. It is sometimes called the science of decision making.

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Microeconomics and macroeconomics

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MicroeconomicsMicroeconomics the branch of economics that focuses on the behavior of individual participation in various market. It is concerned with the specific economic units of parts that makes an economic system and the relationship between those parts.

MicroeconomicsIn microeconomics, emphasis is placed on understanding the behavior of individual firms, industries, households, and ways in which such entities interact.

macroeconomics

Macroeconomics the branch of economics that takes a wide-ranging view of the economy, studying the behavior of economic sectors. It is concerned with the economy as a whole, or large segments of it.

macroeconomics

It focuses on such problems as the role of unemployment, the changing level of prices, the nations total output of goods and services, and the ways in which government raises and spends money.

Microeconomics and macroeconomicsMicroeconomics looks at the trees, while macroeconomics looks at the forest. Both categories involve the construction of theories and formulation of policies-activities that are the heart of economics.

15Macroeconomics vs. Microeconomics To understand the scope and sweep of macroeconomics, lets begin by looking more carefully at the difference between microeconomic and macroeconomic questions. MICROECONOMIC QUESTIONMACROECONOMIC QUESTIONGo to business school or take a job?How many people are employed in the economy as a whole?What determines the salary offered by Liceo de Cagayan University?What determines the overall salary levels paid to workers in a given year?

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16Macroeconomics vs. Microeconomics MICROECONOMIC QUESTIONMACROECONOMIC QUESTIONWhat determines the cost to a university or college of offering a new course?What determines the overall level of prices in the economy as a whole?What government policies should be adopted to make it easier for low-income students to attend college?What government policies should be adopted to promote full employment and growth in the economy as a whole?What determines whether Ayala will put up a branch on El Salvador City ?What determines the overall trade in goods, services and financial assets between the Philippines and the rest of the world?

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17 Microeconomics focuses on how decisions are made by individuals and firms and the consequences of those decisions. Ex.: How much it would cost for a university or college to offer a new course the cost of the instructors salary, the classroom facilities, the class materials, and so on. Having determined the cost, the school can then decide whether or not to offer the course by weighing the costs and benefits. Macroeconomics vs. Microeconomics

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18 Macroeconomics examines the aggregate behavior of the economy (i.e. how the actions of all the individuals and firms in the economy interact to produce a particular level of economic performance as a whole). Ex.: Overall level of prices in the economy (how high or how low they are relative to prices last year) rather than the price of a particular good or service. Macroeconomics vs. Microeconomics

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19Four Principal Ways that Macroeconomics Differs from Microeconomics:

1. In macroeconomics, the behavior of the whole macroeconomy is, indeed, greater than the sum of individual actions and market outcomes. 2. Macroeconomics is widely viewed as providing a rationale for continual government intervention to manage short-term fluctuations and adverse events in the economy. monetary policyfiscal policy

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20Four Principal Ways that Macroeconomics Differs from Microeconomics (cont.):3. Macroeconomics is the study of long-run growth: What factors lead to a higher long-run growth rate? And are there government policies capable of increasing the long-run growth rate?

4. The theory and policy implementation focus on economic aggregates -- economic measures that summarize data across many different markets for goods, services, workers, and assets.

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Basic economic problemsWhat?Whom?How?

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What to Produce?Society must decide what to produce with its limited resources. For example, society may have to choose whether to produce goods for defense or services for poor people.

BoomboxMP3 PlayersOR

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How to Produce?Society must decide how to produce. For example, should we accept more pollution from factories in exchange for greater output of products?

Assembly LineModel T Ford

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For Whom to Produce?Society must decide for whom to produce. Who will receive the goods and services? In the Philippines, most goods and services are distributed through the price system.

Are Electronics Producedfor All Ages to Enjoy?

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PHILIPPINES SOCIAL HIERARCHY

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Philippines Social HierarchyA social dissection is a basic categorization method whereby a community ranks one another as superior or inferior. Although there are many factors that contribute in the social segregation of people but majorly this ranking & evaluation is done on the basis of authority, wealth, status and social influence.

Philippines Social HierarchyThis was done as an appropriate hierarchical organization & arrangement of these social classes form specific social groups in the society. Philippines social hierarchy was also affected by this social stratification.

Philippines Social HierarchyIn Philippines there were broadly three social classes which also got sub categorized further. The Philippine social hierarchy is depicted here in a down sliding order pattern with the topmost status holder social class on the highest levels and the other lower classes in a vertical manner:

Philippines Social HierarchyMiddle ClassUpper Class/ MaharlikaLower ClassClass IClass IITimawaAliping NamamahayAliping SagigilidAlipinDatuUmalahokanGatLakanDatus Family

Philippines Social Hierarchy

Upper Class / MaharlikaThese were the top most authority holder in this hierarchy and the richest of all in the Philippines social hierarchy. This social class further got divided and sub divided as follow:

Philippines Social HierarchyClass I This was the class of leader of the society and his family. It incorporated the following:DatuDatus Family

Philippines Social HierarchyClass II These were inferior to Datu and his family but superior to rest of the people of Philippine. The people in this class were involved in administrative works like trading, lawmaking, warfare, implementing of the laws, handling and taking care of rituals and religion.UmalahokanGatLakan

Philippines Social HierarchyMiddle ClassThis was the middle level social class of the hierarchy. It further incorporated two social classes that are portrayed as below. Just have a look:

Philippines Social HierarchyTimawa These were the Freed Slaves. They bought their freedom by some possible mean. They were engaged in agriculture, boat making, livestock, carpentry, hunting, fishing and many more such manual work. They were allowed to get married and had family of their own.

Philippines Social HierarchyAliping Namamahay These were also sort of slaves but had some rights provided by their owners. They could get themselves free by any means possible at that time. When an Aliping Namamahay bought his freedom, he then became a Timawa.

Philippines Social HierarchyLower ClassThis was the lowest class of the hierarchy. It further incorporated into two classes that are described as below:

Philippines Social HierarchyAliping Sagigilid This was the poorest class of the Philippines social hierarchy. These people had zero or negligible rights. They were not allowed to own a property in the country. They were not even allowed to get married. They were pretty much like slaves who could be traded or even sold out by their owners and were not allowed to repulse their masters decision.

Philippines Social HierarchyAlipin This was the lowest most class in Philippines social hierarchy. These were people who had done crime in the past. People would inherit the Alipin blood from their criminal parents. There were also some other sort of Alipin who were buried under huge debts.

SOCIOECONOMIC MOBILITY

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Socioeconomic MobilitySocial Mobility - Movement of individuals or groups within a stratification structure. Intra-generational mobility movement within a career of an individual.Inter-generational mobility mobility of groups from one generation to another.

Socioeconomic MobilityHorizontal mobility a change from one occupation to another at the same general status level.Vertical mobility upward or downward movement of occupational or social class.

Socioeconomic MobilityDeterminants of mobilitySteepness of the socioeconomic pyramid only very few positions at the top; how many people can be President?

Socioeconomic MobilityDeterminants of mobilityStarting position on the socioeconomic ladder some persons start closer to the top than others; it is easier to become President if you are already elected to higher office.

Socioeconomic MobilityDeterminants of mobilityStructural mobility the movement of entire categories of people due to changes in society itself; correctional officers have moved up the occupational status ladder from security guards to professionals in terms of both income and prestige.

SOCIOECONOMIC STRATIFICATION AND ITS PERSPECTIVES

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THE DAVIS-MOORE PERSPECTIVETHESISSTRATIFICATION HAS BENEFICIAL CONSEQUENCES (ITS FUNCTIONAL).KEY POINTSMEMBERS OF SOCIETY HAVE NEEDSSOME STATUSES IN SOCIETY ARE MORE IMPORTANT THAN OTHERS WHEN IT COMES TO SEEING TO NEEDSTO ATTRACT THE BEST QUALIFIED AND TO GIVE OF THEIR TIME, EFFORT, AND ENERGIES, REWARDS MUST BE SUFFICIENT IN NATURE (INCOME, PRESTIGE, POWER)KEY CONCEPTMERITOCRACY AND GETTING WHAT YOU DESERVE

ANOTHER PERSPECTIVEONES PLIGHT IN LIFE IS TIED TO A PERSONS RELATIONSHIP TO THE MEANS OF PRODUCTIONA PERSON EITHER CONTROLS MONEY AND EQUIPMENT, OR WORKS FOR THOSE WHO DOTHROUGH INHERITENCE LAWS, SOCIAL CLASSES THEN REPRODUCE THEMSELVES OVER GENERATIONSEVENTUALLY, YEARS OF CLASS OPPRESSION WOULD LEAD TO CAPITALISMS DEMISESOCIALISM REPLACES CAPITALISMKARL MARX BELIEVED THAT CAPITALIST SYSTEMS OFSTRATIFICATION WOULD ALWAYS BENEFIT A FEW AT THE EXPENSE OF THE MANY

Ideological Support for InequalityThere exists in the beliefs of people explanations which justify or legitimize a particular societal structure. There will always be, in the minds of those who are privileged in a society, the desire to justify their good fortune as being a result of personal qualities such as hard work.

The social scientist, however, looks for structural reasons for the patterns of the distribution of wealth, for admission to and graduation from the best universities, and the securing of the best jobs. * self-serving biasIdeological Support for Inequality

Marx argued that the class(es) in power impose their ideology on the entire society, and that false consciousness occurs when people without power accept an ideology that is contrary to the interests of that people as a class.Ideological Support for Inequality

Marx further suggested that this false consciousness will exist until the exploited class develops a sense of class consciousness, at which time the people will unite in the pursuit of their collective interests and challenge the power classes.Ideological Support for Inequality

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SOCIOLOGICAL ANALYSIS OF STRATIFICATION AND CLASS

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Sociological Analysis of Stratification and ClassFunctionalist PerspectiveThe lower class provides a pool of inexpensive laborers that help keep prices down.The poor buffer the lower-middle class from economic changes.People have different skills and knowledge and will always seek different opportunities.Conflict PerspectiveStratification and class are the results of the inequality in the distribution of the wealth, which is sustained by the exertion of power.

Sociological Analysis of Stratification and ClassSymbolic Interactionist PerspectivePeople are socialized to accept inequality.People in the subordinate classes often adopt the value systems of those in power and see themselves as unworthy.

Relative versus Absolute PovertyRelative Poverty: An uneven distribution of wealth where some people lack resources that are taken for granted by others.Absolute Poverty:A situation in which the lack of resources is life-threatening.

Relative versus Absolute PovertyPoverty and Women: In poor countries men own 90% of the land.

70% of the worlds 1 billion people living near absolute poverty are women.

SlaveryChattel slavery one owns anotherChild slavery- children used to beg, steal, or workDebt bondage- workers are not paid enough to pay for their expensesServile forms of marriage- women are sold off into marriage or prostitution