Adapting Capitalism: Navigating Changing Economic Trends

1. Chapter 18 The Economy and Work

2. Capitalism • Capitalism is an economic system in which the means of production are largely in private hands and the main incentive for economic activity is the accumulation of profits. In practice, capitalist systems vary in the degree to which the government regulates private ownership and economic activity.

3. Laissez-faire (自由放任): under this principle as expounded and endorsed by British economist Adam Smith (1723-1790), people could compete freely with minimal government intervention in the economy. Business retained the right to regulate itself and essentially operated without fear of government regulation. • Monopoly (獨占): it exists when a single business firm controls the market.

4. Socialism • Socialism: The means of production and distribution in a society are collectively rather than privately owned. • Communism: refers to an economic system under which all property is communally owned and no social distinctions are made on the basis of people’s ability to produce.

6. The Changing Economy • The active recruitment of women and minorities into the workplace, known as affirmative action. • Deindustrialisation: refers to the systematic, widespread withdrawal of investment in basis aspects of productivity such as factories and plants. • The term downsizing was introduced in 1987 to refer to reductions in a company’s workforce.

8. Trade unions are organisations that seek to improve the material status of their members, all of whom perform a similar job or work for a common employer. • E-commerce: refers to the numerous ways that people with access to the Internet can do business from their computer. (e.g., Amazon and eBay) • A contingency workforce: workers are hired only for as long as they are needed.