SOC101Y1 Chapter Notes - Chapter 15: Democratic Deficit, Neoliberalism, Profit Motive
Globalization of fast food / McDonald's / obesity
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Good / bad because spreads liberal approach to business
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Globalization or "Globaloney"?
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Makes the world look and feel smaller
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Social, economic, and political process that makes it easier for people, goods,
ideas, and capital to travel around the world at an unprecedented pace
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Time-space compression : we are no longer slowed down by long distances and time
differences
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People have access to any place, yet typically communicate within their communities
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Not everyone has access to technology - digital divide
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Globalization has been occurring since 16th century
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Defining Globalization
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Inherently neither good nor bad
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Protests in Egypt
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Occupy Wall Street
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Ethical debates around globalization
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The Global and the Ethical
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Financial / businesses advocating for a world where capital can flow freely
uninhibited by regulations / taxes
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Associated with United States - promotes neoliberalism
Neoliberal economic policies : a retreat from state spending and regulation,
focus on individual responsibility for one's own welfare, less protection for
labours, and environment, privatization of state resources, faith in the
power of the market and profit motive to create wealth
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Top-down : actions of groups promoting globalized capitalism and free trade
▪
Many of these groups support particular types of globalization, using
technology to organize
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Typically advocate democracy, environmental protection, and social justice
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Against neoliberal forms of globalization that put capital mobility,
markets, and profits before people
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Differences in how to solve --> not a cohesive movement, but a broad
framework with multiple positions
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From below : actions of groups that critique the injustices that result from
globalization / expansion of global markets
▪
Top-Down v. Bottom-Up Globalization
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"casino capitalism" financial speculators stand to make / lose millions of
dollars in short periods of time
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Facilitated by financial deregulation under neoliberalism
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Investor speculation makes financial systems unstable
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$ floods, creating 'bubble' that drives markets up which bursts when
investors realize the market is overpriced relative to actual assets --> panic
/ recessions
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U.S. crisis --> international implications, everyone is affected
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Rise of Financial Capital
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Declining profits and overcapacity in the economy of goods and services -->
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Overcapacity and centralization
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Capitalists Go Global
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“Globalization,” in Commit Sociology, vol 2 p4-32
Reading 2.4: Globalization & Global Inequality
February 1, 2017
12:00 PM
READINGS Page 142
Declining profits and overcapacity in the economy of goods and services -->
can produce more than can purchase
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Transnational companies can't survive without diversifying into multiple
goods in multiple countries, hence more mergers / consolidation
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Corporations are bigger and more powerful than many governments
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Paying less taxes than ever
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Pressure government to lower tax rates by threatening to move
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Causes more wealth inequality
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Growth of corporate giants
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Movements against sweatshops / child labour
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Some companies simply change names
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Voluntary good labour / environment practices
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Governments can't control corporations
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Critics of corporate power
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Democratic deficit : ordinary citizens are disenfranchised from the process of
governance
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Deregulate capital markets
Remove price subsidies
Decrease social spending
Orient the economy towards exports
Privatize state-run industries
IMF established to maintain stability of international monetary system,
requires
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World Bank to make loans to help postwar reconstruction, required
structural adjustment criteria to be met in order to grant loans -->
undemocratic and severe
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WTO to lower trade barriers, increasing international trade --> protests,
WTO only benefits the rich
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3 sisters
▪
IMF / World Bank / WTO do not affect states equally
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More power for states at top of hierarchy
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Power of U.S. failing due to debt / financial crisis?
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A U.S. Empire?
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Widening power gap between and within states
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1st world : wealthy capitalist countries --> poverty inequality
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2nd : countries of communist bloc --> mostly collapsed
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3rd : everyone else? --> these countries don't share common traits
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4th : population / regions with poverty, result of new economic and
technological paradigm where only a portion of the world are competitive -->
marginalized countries
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Developed / developing or majority (poor) / minority (privileged)
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Global Inequality and the "4th World"
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Are States Relevant in the Global World
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Global commodity chain : worldwide network of labour and production processes
whose end result is a finished commodity - not transparent to consumer
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High consumer spending increases economic growth while lack of confidence =
recession
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Consumerism : person's identity / purpose is oriented primarily to the
purchase / consumption of material goods
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Global Glut
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WTO prohibit states from using subsidies / quotas to protect domestic
cultural products
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Culture or Commodity?
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The Global Consumer
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READINGS Page 143
Document Summary
Globalization of fast food / mcdonald"s / obesity. Good / bad because spreads liberal approach to business. Social, economic, and political process that makes it easier for people, goods, ideas, and capital to travel around the world at an unprecedented pace. Time-space compression : we are no longer slowed down by long distances and time differences. People have access to any place, yet typically communicate within their communities. Not everyone has access to technology - digital divide. Top-down : actions of groups promoting globalized capitalism and free trade. Financial / businesses advocating for a world where capital can flow freely uninhibited by regulations / taxes. From below : actions of groups that critique the injustices that result from globalization / expansion of global markets. Many of these groups support particular types of globalization, using technology to organize. Typically advocate democracy, environmental protection, and social justice. Against neoliberal forms of globalization that put capital mobility, markets, and profits before people.
