Session 2

1. When I give food to the poor, they call me a saint. When I ask why the poor have no food, they call me a communist. Dom HelderCamara Session 2 Capitalism CHCLD514A Analyse sociological impacts on clients in community work and services

2. Session Outline • Review of previous session • Capitalism • Introduction to topic • Egalitarianism • Social Stratification • Marxism • Capitalism CHCCORG405C Maintain an effective work environment

3. This is the duty of our generation as we enter the twenty-first century -- solidarity with the weak, the persecuted, the lonely, the sick, and those in despair. It is expressed by the desire to give a noble and humanizing meaning to a community in which all members will define themselves not by their own identity but by that of others. ElieWiesel CHCCORG405C Maintain an effective work environment

4. Definitions Power: • The degree to which individuals/groups can impose their will on others, with or without their consent Prestige: • Amount of esteem or honour associated with social positions, qualities of the individuals and lifestyles Wealth: • Material possessions defined as valuable (land, livestock, buildings, money) CHCLD514A Analyse sociological impacts on clients in community work and services

5. Social stratification • Social stratification means that social groups are ranked differently according to their power, prestige and wealth. CHCLD514A Analyse sociological impacts on clients in community work and services

6. Capitalism • Private ownership and control of production • Economic activity is about making profits • Market regulates this economic activity (demand/supply) • Owners of production receive the profits (except for taxes) • Provision of labour by workers who are free agents CHCLD514A Analyse sociological impacts on clients in community work and services

7. Capital • Capital is money used to finance the production of commodities (goods) for private gain • We accumulate capital by selling goods at greater value than they cost to produce. CHCLD514A Analyse sociological impacts on clients in community work and services

8. Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is an organized conspiracy to oppress, rob and degrade them, neither persons nor property will be safe. Frederick Douglass CHCCORG405C Maintain an effective work environment

9. Capitalism as the global dominant economic theory • The aim of any capitalist is to maximize profit for the owner of the business. There is no limit to the profit that any business should make. • Consumption capitalism is the production of goods and services for consumption by individuals i.e. clothes, cars, houses, holidays. These goods and services are constantly used up and have to be replaced. • Free trade is the free exchange of goods and services produced by consumption capitalism across the world. CHCLD514A Analyse sociological impacts on clients in community work and services

10. Capitalism as the global dominant economic theory • With 'free trade', the capitalist is free to find the cheapest sources of material and labour to make goods and services so that they can maximize their profits. For example, Nike makes shoes and clothes in Vietnam for say up to $2 per item and sells them in Australia for $200 per item. • Globalization has become a negative term associated with the excesses of capitalism. CHCLD514A Analyse sociological impacts on clients in community work and services