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Lecture 11

Lecture 11.docx

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Sheldon Ungar

Lecture 11- November 21, 2013 • Inequality does seem inevitable o kibbutz in Israel o Soviet Union & communism  tried to give everyone the same wage  this didn't work because people will not work hard and put in the same amount of work for the same amount of mony (e.g. would you rather be a supervisor of a factory and have to meet a quota or just sweep floors?)  put a 10:1 level (top workers could earn 10x's as much as the lowest worker)  begann to put women aside (women mattered less, men took over)  then leaders got cars and other privvileges  kids of elite went to elite schools • richest street in Toronto: Bridle path Emergency of Inequality The Functionall Argument • some jobs are more important than others e.g. physician vs. janitor (what takes longer to learn?) • functionally important jobs require more training Functionalism • position open to the best person o *but how do you assess the "best"? o use just grades? school vs. work? e.g. Presidentt Roosevelt (was a C student, but was a very good president...had spectacular social skills that are necessary to be president..knew how to say something to a room of people who are arguing and each one thought something different so all were happy because they didn't really know his position) Affirmative Action • opens position to talented and qualified persons of any group Critique of Functionalism • How do you determine which jobs are most functionally important o i.e. contribute more o imagine a strike:  time to impact (how long does it take for people to notice or for people to be impacted?)  critical is the strike?  easy is it to replace the people who are on strike?  e.g. Doctors:  immediate impact  truck drivers  impact is not as immediate, but still important  would take a couple of weeks to be critical  replacability: can be replacable (military has lots of truck drivers)  hockey  replaceability: can easily replace with people with the same skill level, but you can't replace the stars and fame • much wealth is inherited o legacy positions (Harvard) o inherit the position (AA for the elite) o if you want the most talented, then it shouldn't be inherited • occupations preserve scarcity o use power to limit aaccess o credentialism  chiropractors: need certain level of training (done so that the field can be exclusive) • What is fair/effective? o how much more rewards do you need to motivate the "best" peopel to fill the most important positions? o 10 times income? o 100? o 1000? o (recall trickle down theory) • Rich and powerful use advantaged position to suck up greater rewards o Tiger Woods  gets $2.1 million just for showing up  when he is there, the audience is much bigger • median household income: $51,000 • median income per person: $27,000 o stats for the US for 2011 Distributing Outcomes Fairly • Equity model o outcomes (rewards) propotionate to inputs (contributions) o Oa/Ia=Ob/Ib=K • input o what input
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