Outline 1. Marx 2. Commodification & Decommodification 3. Labor Markets A. Domination & Exploitation 4. New Classes in Conflict A. Bourgeoisie B. Proletariat.

Outline

1. Marx2. Commodification &

Decommodification3. Labor Markets

A. Domination & Exploitation

4. New Classes in ConflictA. BourgeoisieB. Proletariat

5. Class Struggle

Class News Exam will be on

Tuesday 3/29

New Policy Experiment:

Power Point Slides are up

Chaplin back on Thursday

Quiz

1. One of this week’s readings provided an in depth examination of the production of pancakes. This article used the creation of pancakes to explore the concept of:

A. McDonaldizationB. CommodificationC. IndustrializationD. Deregulation

Quiz

2. The reading “Not Just and Urban Legend” explored:

A. The degree to which serial killers are socially integrated

B. The spread of false rumors like the idea that mixing “pop rocks” and Pepsi will kill you

C. The buying and selling of human organsD. The way that organized criminal groups

such as the mafia interact with free markets

Karl Marx and Modernity1818-1883

Karl Marx

Sometimes said that “All of sociology is a wrestling match with Karl Marx’s ghost.”

Early analyst and critic of new capitalist society

Like Durkheim, very skeptical that “self interest” would create a stable society

Predicted self interest and free markets would lead to an unstable society characterized by poverty and crisis

Free market would generate new classes that would come into conflict with one another

Marx’s Main Concern About Modernity: New Inequality between Classes

Karl Marx…Wrote A LOT…

You’ll encounter in sociology, political science, philosophy, history….

Throughout, concerned with the way the commodification of life generated conflict…huh?

Anyone want to take a stab at this term?

Marx…

Smith advised individuals to pursue their own self interest

Social Structure changes from subsistence living to dependence on markets Native Americans…from buffalo hunt on common lands to

private property and the super market

Irish used to work landlords land, then land was cleared and they were forced to get essentials in the market

Markets develop in many goods and services Pete raises cattle for meat: Ted makes knives to sell to butchers;

Ralph sells steaks; Mary sells pots and pans, etc.

More and more things become Commodities goods or services that are exchanged in a market (D)

Commodities and Context

Commodities- goods or services that are exchanged in a market (D)

Whether or not something is a commodity is dependent on social context

Buffalo killed by Native American tribe and eaten collectively by tribe is not a commodity

Buffalo raised by rancher to be sold to butcher is a commodity

Buffalo ground up into hamburger for sale to family… ground meat is a commodity

Buffalo burger barbecued by Dad and given to family…not a commodity

Modernity brings more and more commodities…and a new concept

Commodification

extension of the market into spheres of life previously not organized by market relations (D)

Food, Shelter, water, heat…Can pay for them you get them…if you can’t…welcome to modernity…

Think Native American…from gathering wood for heat to purchasing wood for heat

Hundreds of thousands landless Irish starve in 1840s “God brought the blight, the English brought the famine.”

Today, most of us take commodification for granted…but if you think about it…you’ll notice interesting process…

Growing Commodification of our world…

Commodification extension of the market into spheres of life previously

not organized by market relations (D)

Stadiums Space within the building…(Wrigley and the Roofs) Names: Veterans to Lincoln Financial

Growing Commodification of our world…

Commodification extension of the market into

spheres of life previously not organized by market relations (D)

Bodies $15,000 = GOLDEN

PALACE.COM tatoo

For three years, Goodyear's Dunlop tire unit has offered a set of free tires to anyone who will get the company's flying-D logo tattooed somewhere on their body, and 98 people have taken up the offer.

Growing Commodification of our world…

Commodification extension of the

market into spheres of life previously not organized by market relations (D)

Clothes Product

placements in novels

TV Product Placements

Growing Commodification of our world…

Commodification extension of the market into spheres of life

previously not organized by market relations (D)

Selling the The Sides of Coffins

Commodification extension of the

market into spheres of life previously not organized by market relations (D)

Classrooms Students are a

captive audience exposed to marketing or ads

Can’t just get up and change the front of the classroom…you have to look

Growing Commodification of our world…

Commodification extension of the market into spheres of life

previously not organized by market relations (D)

Inside of the Patco Tunnel in Philly

The Commodification of life…

What happens if self interest leads some social actors to commodify (buy & sell) things that other members of society don’t want commodified?

Society and Markets

Laissez faire (D)

doctrine that government should limit itself to the maintenance of law and order, and remove all legal restraints on trade and prices.

From the French “Leave us alone”

Emphasis on “Free markets” with little or no government regulation

Associated with ideas of Adam Smith

Commodification of labor…?You live in a capitalist society where some argue that there should be minimal regulation of business. You and your spouse are employed at a very profitable cotton mill where you each work 7 days a week, 12 hours a day. You are not paid enough money to feed your child, pay your rent, and buy other necessities. Your child is 8 years old and has nimble hands. Your boss tells you that he would be more than happy to hire your kid and pay her ½ of what you receive. Though you are not happy about this idea, since you would rather your kid go to school, your family needs the money and your kid joins the millions of other children legally working in factories in America.

1) Should the labor power (ability to work) of 8 year old kids be a commodity? If yes, why? If no, why?

Commodification of labor…?

You live in a capitalist society where some argue that there should be minimal regulation of business. You and your spouse are employed at a very profitable cotton mill where you each work 7 days a week, 12 hours a day. You are not paid enough money to feed your child, pay your rent, and buy other necessities. Your child is 8 years old and has nimble hands. Your boss tells you that since that he would be more than happy to hire your kid and pay her ½ of what you receive. Though you are not happy about this idea, since you would rather your kid go to school, your family needs the money and your kid joins the millions of other children legally working in factories in America.

1) What mechanisms might society use to put an end to child labor (try to use our concepts: self interest, competition, exit, voice, collective action, norms, institutions, etc)

Society Limits Commodification

Anyone know how our society dealt with/deals with the issue of child labor?

Society Limits Commodification

Anyone know how our society limited child labor?

Collective Action Voice Institutional Rules (Laws)

Fair Labor Standards Act (1938) restricted child labor in industries engaged in

interstate commerce and set minimum wage wages and maximum hours for all workers. (D)

Mother Jones led a march through Philly to eliminate child labor

Still an issue on planet… International Labor

Organization estimates 120 million kids between 8 and 14 currently work full time

Thinking about future topics we’ll study…What happens when companies and workers in societies that have banned child labor have to economically compete with companies and workers in societies that permit child labor?

What’s a self interested business man in America to do?

What’s a self interested worker in America to do?

The Commodification of life…

What happens if self interest leads some social actors to commodify (buy & sell) things that other member of society don’t want commodified?

Commodification…?

You live in a capitalist society where great emphasis is placed on the ability of markets to coordinate social relations. In this society, there are people who need organ transplants. Different organs are distributed in different ways, but generally speaking those in need are put on lists, and when donors emerge, organs are given out based on a formula that uses placement on the list along with current status. Since people can live with only one kidney, Mr. X sees and opportunity and creates ACME Kidney Traders.

1) Should people be able to buy and sell body parts just like they buy and sell blankets? Should human organs be commodities? Why or why not?

Limits on Commodification…

National Organ Transplant Act (1984)

sale and purchase of human organs punishable by up to 5 years in prison or a $50,000 fine. (D)

But as with many things that are banned, a black market exists

Banned…

But a black market…

UN: Fall 09

“Human dignity would seem to require that a person be able to make a living without having to maim himself. And medical ethics would seem to prohibit taking people’s parts for profits”

Decommodifying the World?

All modern societies grapple with the degree of commodification that should exist in a society…

Result has been interesting conflicts over questions of

Decommodification- removal of the market from a sector of society previously governed by market relations (D)

Outline

1. Marx2. Labor Markets Exploitation3. Labor Markets and Exploitation 4. New Classes in Conflict

A. BourgeoisieB. Proletariat

5. Class StruggleA. RevolutionaryB. Democratic

“Afghanistan may be a feudal society in many ways, but it is very much capitalist feudalism. In northern Kunduz Province, Afghan votes cost $15 each; in eastern Ghazni Province, a vote can be bought for $18. In Kandahar, they sell their rights for as little as $1 a ballot. More commonly, the price seems to hover in the $5 to $6 range, as quoted to New York Times reporters in places like Helmand and Khost Provinces.

A sociologist would note that Afghanistan has witnessed the ____________ of votes.

A. structuration B. wholesaleization C. Walmartization D. commodification

Decommodifying the World? All modern societies grapple with the degree

of commodification that should exist in a society…result has been interesting conflicts over questions of

Decommodification- removal of the market from a sector of society previously governed by market relations

Who owns the Grand Canyon?

Decommodifying the World? All modern societies grapple with the degree of

commodification that should exist in a society…result has been interesting conflicts over questions of

Decommodification- removal of the market from a sector of society previously governed by market relations

Who owns the Grand Canyon? You do. Government interfered in the real estate

market and created the National Park System in the early 20th century. Ken Burns documentary currently airing on PBS

Decommodifying the World… Decommodification

What has our society done to make sure that books are available to everyone in society, regardless of whether they have money to buy books?

Decommodifying the World… Decommodification What has our society done to make sure

that books are available to everyone in society, regardless of whether they have money to buy books?

Public libraries

Decommodifying the World… Decommodification

removal of the market from a sector of society previously governed by market relations.

Anyone ever drive Vermont’s Highways? Notice Anything different?

Decommodifying the World… Anyone drive Vermont’s Highways? Notice

anything different about these roads?

Institutional rules do not permit the buying and selling of space on the side of the road in VT

Decommodifying the World…

Decommodification-SchoolsShould attendance only be permitted for those who

can pay their way, or should it be available to all?

Pakistan: K-12 is a commodity…you pay for it

US: K thru 12 has been decommodified…

Sweden and much of Europe: College has been decommodified…

Decommodifying the world… Decommodification- removal of

the market from a sector of society previously governed by market relations.

Using this term, tell my why the music industry is freaking out about operations like Limewire, Bit Torrent and other websites?

Decommodifying the world… Decommodification- removal of the market

from a sector of society previously governed by market relations.

Now in the midst of a 6 year slump in music sales

Decommodifying the World…?

Debates currently rage on about these matters?

Should drugs for senior citizens be decommodified? Government provision or Privately Purchased

A FINAL PUSH IN CONGRESS: THE OVERVIEW; SHARPLY SPLIT, HOUSE PASSES BROAD MEDICARE OVERHAUL; FORCEFUL LOBBYING BY BUSH By ROBERT PEAR and ROBIN TONER; Carl Hulse contributed reporting for this article. November 23, 2003

A fiercely polarized House approved legislation on Saturday that would add prescription drug benefits to Medicare, after an all-night session and an extraordinary bout of Republican arm-twisting to muster a majority. The Senate opened its debate under threat of a filibuster.

But a roll-call vote, which rarely exceeds 20 minutes, began at 3 a.m. and was held open for nearly three hours, as Republican leaders and Bush administration officials scrambled to quell a conservative rebellion.

Decommodifying the World…?

Debates currently rage on about these matters?

Presidential debate transcript, Oct. 7, 2008 Question: Senator, selling health care coverage in America as the marketable commodity has become a very profitable industry. Do you believe health care should be treated as a commodity?

Neither Obama or McCain said it should not be a commodity

Recent Health Care Reform proposals in House and Senate do not decommodify health care, they regulate its sale Many countries have decommodified it

Decommodifying the World…?

Debates currently rage on about these matters?

Should pre-school be decommodified and provided like K-12?

Aid Critical to Public Preschool Plan By JOHN MOONEY March 1, 2009 (NYT)

Modeled after court-required preschools in the state’s urban districts, the far-reaching law calls on virtually every district to start providing all-day programs for their low-income 3- and 4-year-olds by the fall.

Once again…

Reasonable people will reasonably disagree on appropriate level of commodification…

Your job in colllege…or at least in this class…

Develop capacity to analyze such matters…and then sort our your positions on your own…

Next…Marx and the commodification of labor

Karl Marx and Modernity1818-1883

Smith & Marx…

Smith Society as a web of atomized self interested individuals

engaged in market exchanges…

All pursue self interest, Invisible Hand will generate stability and prosperity for society

Capitalism a form of economic activity in which the means of production

(factories, mines, hotels, software companies etc.) are privately owned and in which others, lacking access to the means of production, are forced to sell their labor power for a wage in a labor market. (D)

Production is geared toward the pursuit of profit and is regulated through market competition.

Profits that are generated belong to the owners of the means of production.

I know…that’s a mouthful…could spend an entire semester just unpacking this definition…lets focus in on Marx’s take…

Smith & Marx…

Marx thought the invisible hand at work in the new capitalist society would lead to conflict, not harmony…

Marx that turning Labor power into a commodity, something that is bought on sold on the market, was a problem

Labor power- the ability of people to do work (D)

Marx expects that this will generate Groups of people that will clash over economic issues

Capitalism turns labor into a commodity Not the case prior to development of capitalism in

18th century…wage labor was very rare

Gemeinschaft Based on Subsistence…you took what you needed from nature and turned it into what you needed to survive…no one paid you a wage

When Gemeinschaft societies are destroyed… People will be kicked off the land…

Enclosure Movements across Europe Reservations for Native Americans in US

People will no longer be able to get what they need from nature…puts them in a bind…what can they do to get meat, wood, etc?

What can they do…?

No longer have access to the land Can’t farm, raise cows and chickens, hunt

buffalo etc.

Former peasants and/or hunter gatherers will have to buy things that they need at market… this will take money…

To get money, they will need to sell the only thing they have…their ability to work… “The natives are to be forced to make a living by selling

their labor.”- Karl Polanyi, 1944

Markets in human labor develop…

Raises simple, but very important questions…

Can human labor be treated just like any other thing we buy and sell…

So…let me ask you…in what ways is selling your ability to work to an employer different from selling an apple to someone…

Labor Power as Different From Buying an apple…

“…labor as commodity can not be detached from the social and physical life of the seller (Streeck 2007: 262)

Can’t hand over labor power like you hand over a bag of apples…go home to watch TV…you must accompany your labor power to work

Selling labor power entails entering into an ongoing relationship of authority and subordination

Labor Markets Create Potential Conflicts of Interest…

Wages vs. Profits Workers and owners or management share an interest in

generating a profit But who will decide what is done with the profits that are

created during economic production? Wages for employees, Dividends for shareholders, Re-

investment, Bonuses for executives, Reinvested into company…

Hours & Retirement How long will the work day be? Will there be bathroom

breaks? Coffee breaks? Paid Vacations? Paid Sick Days? Paid Maternity leave? Easter Sunday?

How long will people be expected to work? How will they survive when no ones to hire them anymore?

Labor Markets Create Potential Conflicts of Interest…

What type of working conditions? Speed of assembly line? How many rooms will a

janitor clean? How many students in a class-room? Patient to Nurse ratio? One or two officers to a car? Scaffolding? Toilets? Emergency exits? Fire alarms?

Questions of power and dignity? How will people be dismissed? Will the manager

check the toilet to see if you took a crap? Will the work environment be one of fear or respect? How will problems be solved?

Labor Market Creates Conflict… In the places you work, or in which you

will someday work, who decides these things?

Wages, hours, working conditions, etc…

Labor Market Creates Conflict… In the places you work, or in which you will

someday work, who decides these things?

Wages, hours, working conditions, etc…

The Boss…acting on behalf of the owners

Domination- a term used to to indicate the POWER that one social group has over another (D)

Some are bosses, some are bossed

Labor Markets Create Conflict…

Many non-Marxists will agree with Marx that the commodification of labor creates interesting relations of domination…

But for Marx…it is not just about being bossed around…

He is particularly interested in who controls the surplus (profit) that is generated during economic activity…

Consider my blanket factory

Marx on the Dividing Up the Economic Pie…

My Blanket Factory…

Need 10 unskilled workers to work the machines

Analyze my Needs & Costs Willing to pay 10 workers @ $5 each a day =

$50 in wage compensation

But 1,000 of you have just been cleared from the land in Ireland and all show up looking for work…you all want and need the job…

Hmm…who should I hire?

Markets in human labor…

$5…$4…$3…$2…$1…

Cheapest Worker Who Can get the job done…Wins.

Markets in human labor…

$5…$4…$3…$2…$1…

What is happening? What mechanism is setting the price of labor?

Markets in human labor…

$5…$4…$3…$2…$1…

What is happening? What is setting the price?

Competition sets price…as Smith predicted and many desire

Competition between workers pursuing their self interest in not starving to death…

Same way the price of a blanket is set

Very interesting…but still, not Marx’s main interest

OK…low wages…but Marx’s Goes further…How is the economic pie divided?10 workers @ $1 each a day

$10

10 workers produce $500 of goods by lunch$500 Paid $10…made $500…workers say “See you tomorrow boss”

Uh-uh. Back to work. 10 workers produce another $500 of goods by 8pm

$500 

$1000 of Wealth Created:After paying $10 for wages, and $100 for the other costs of production (supplies, power, transportation, marketing, etc) there is $890 left

In a capitalist economy, what happens to the $890 of what Marx called surplus value?

In this new game called Capitalism…The rules say the owner gets it…

Owner: Gets $890 surplus created by the workers Can buy a nice house, a horse, a

fancy Monet painting, bury it in his yard, reinvest it in the plant, give workers a raise… It’s his decision to be made…

Workers: Get to go home with their $1 and get ready to work the next day

Some work every day and earn great fortunes…others work every day and earn very little

Marx sees this a form of theft…labels it exploitation

Marx: Capitalism as Robbery

Exploitation

when the material welfare of one group of people causally depends on the material deprivations of another. (D)

Carnegie took $2000 for every $1 he paid a worker

Not that different from when the prince took ½ of the corn produced by a peasant…

Just a different mechanism to allow some to get rich off the work of others

In Marx’s analysis, the wealth of rich is based on exploitation of others

Video Clip…

I don’t think Charles Kernaghan would consider himself a Marxist, but his question is similar to what Marx would ask

National Labor Committee Kathy Lee Gifford crying…? Olson Twins

Marx Sees Exploitation

“for a 15 girl…to fall into the maquilla is to fall into a deep dark well…she must cease to be a person…she becomes a cog in a wheel which is only important to the degree it makes the great machine of the maquilla function…which is only important to the degree it makes the machine of the maquilla function…”

Shirt sells for $20…workers are paid .12 cents 40 workers make 1500 shirts a day = $30,000 worth of shirts

40 workers make 56 cents an hour, or $180 a day

$30,000 minus $180 = $29,820… $20 minus .12 cents = $18.88

Marx: Workers create $30,000 worth of value, but only get $180…that leaves $29,820 of surplus value…

Marx Sees Exploitation

Where does the $29,820 go…

Some to cover other costs: Supplies, rent, transportation, advertising ($10,000)

That leaves $19,820 for owner…who takes the surplus value Girls get $180

Exploitation when the material welfare of one group of people causally

depends on the material deprivations of another. Capitalist takes surplus value from workers

Note Marx would see exploitation even if the girls were paid $20 an hour … it is not about the low wages, but about the relationship

American Capitalism and Modernity plagued by Poverty: “How the Other ½ Lives,” Jacob Riis (1890)

Marx’s analysis suggests this is not due to laziness, lack of effort or bad values…but due to the way capitalism works…Some are poor because others are rich

05

1015

2025

3035

4045

50

1870 1890 1910 1935 1944

Percent in Poverty

Marx & Class Society

Not everyone experiences capitalism in the same way And this will lead to conflict

in society

Class (Marx)- a group of people who share a common set of material (economic) interests with respect to the process of exploitation (D)

Some get $2,000, others get $1…Some work 12 hrs a day 7 days…Some Don’t

Two Key Classes for Marx? Bourgeoisie (D)

social class of entrepreneurs, merchants and industrialists in capitalist society. (Capitalist)

Proletariat (D) social class consisting of workers who must

sell their labor power for a wage. (Working Class)

Marx: Capitalism is not fair…and it is not sustainable…

Capitalist Development will lead to (D) Proletarianization

more people will be turned from agricultural worker and small business people into workers

Spreading Immiseration life will become worse and worse for this new class of workers

Increased Homogenization of populations: people will become conscious of common economic interests

“Black and White Unite and Fight!”

Organization of working class into movements for social change “Workers of the world unite, you have nothing to lose but

your chains.” Marx, Communist Manifesto

Organization of the Working Class and Class Struggle

Modernity will be fundamentally defined by Class Struggle organized form of

social transformation directed at advancing the interests of a particular class (D)

Karl Marx and Modernity1818-1883

Marx dies in 1883

Leaves volumes and volumes of writings behind

The “Marxists” who follow him will disagree on what his work meant and what his goals were

What type of class struggle…Marx will not be clear…Followers will disagree…

Revolutionary Class Struggle (D) workers should organize to abolish the new

market system

Armed struggle, mass strikes, direct action to quickly change capitalism into a communist society without classes, in which the surplus is controlled by the people

Government takes control & owns factories, mines, hotels, etc.

What type of class struggle…Marx will not be clear…Followers will disagree…

Democratic Class Struggle Create political parties, run for office and reform capitalism

by enacting policies beneficial to members of the working class (D)

Democratically elected socialist parties will/do govern around the world…but they slowly give up goals of replacing capitalism

Primarily push to decommodify life world…remove parts of society from the market

Take schools, college, health care out of the market

Make it easier for people to pull out of labor market Paid family leave, stipends for college, 4 weeks paid

vacation by law, etc

Marx the Social Theorist Politically Marx’s legacy &

ideas still a factor in much of world politics…

Pick up one of the free New York Times and you’ll see Marxist guerillas fighting in Nepal, Socialists winning elections in Austria, Communists winning elections and governing parts of India, and news of communist dictatorships like those Cuba & China

China is particularly interest…A communist dictatorship with the second largest (soon to be largest) capitalist economy on the planet

Marx and Class Society…

Importance of CLASS recognized by many who are not Marxists of any sort as key variable for understanding how society

Which class the lottery of life throws you into will have huge impact on the quality of your life, on your opportunities in life, where you end up in life, how you live your life…

Social Class as an independent variable predicts the probability of a lot of things (XY)

Independent variable (X): Are you the son of a steel mill owner or the son of a steel mill worker…a doctor or a nurse????

Knowing the answer to this question can help us accurately predict a lot about your life

Dependent Variable (Y)Dependent Variable (Y): Likelihood of voting; of playing football or polo; your vocabulary at age 10; likelihood of going to college; of going to Harvard, Widener or Community college; of ending up in prison; the class your kids will end up in…and on and on…NEXT FALL…

Next…

Smith’s Market Society emerges…invisible hand and harmony…

Hardin…back of the invisible hand… Durkheim…social disintegration Weber’s interest in rationalization and

emergence of bureaucracies Marx’s…class conflict emerges