Lecture 2 Readings
- social and economical changes has led to the thought that we have moved out of the
industrial era into a postindustrial society
- number of workers in factory was decreasing
- education, health, social welfare, entertainment, finance sectors was ris-
- white collar workers began to out number blue collar workers.
- Bell, argued that postindustrial societies would engage most workers in the production
and dissemination of knowledge rather than in goods productions as in industrial capi-
- industrialization had brought increased productivity and higher living standards,
post industrialization society would usher in an era of reduced concentration of
- this means power will not remain in the hands of a small group of individ-
- knowledge workers (technicians, professionals, and scientists)
would become a large and important class
- Bell, felt that knowledge workers would become the elite of the
- Florida, like bell sees the shift from goods to knowledge as a crucial change
- suggests there are 3 classes of creativity
- creative class
- super creative core
- creative professionals
- Robert Reich, points out that knowledge economy offers great opportunities for well-
educated, creative workers
- Joseph Schumpeter considered industrial restructuring a basic feature of capitalism - industrial restructuring involves interrelated social, economic and technological
- deindustrialization is a concept that refers to the declining employment due to factory
closures or relocation, typically in the manufacturing industries: steel, textiles, clothing.
- these industries are also known as sunset industries.
- globalization is supported by corporations and often governments, as expanding ‘free
markets’ will generate economic growth and elevate living standards.
- Saskia Sassen argues the mainstream accounts of globalization, ignores the role of
INDUSTRIAL CHANGES: THE EMERGENCE OF THE SERVICE ECONOMY
- primary sector - agriculture, mining, forestry. any form of raw resources extracting
- secondary sector - manufacturing and construction
- tertiary sector - services rather than products are provided.
- a service is the exchange of a commodity that has no tangible form.
- service sector has been increasing significantly, while primary shrunk.
- rise of the service sector can be attributed to several factors
- productivity gains due to industrialization increasing the income on average. this
means more people have money to spend for services, which fueled the de-
mand for services.
- the demand for higher qualifications lead to expansion of educational, health