SOCI2050 14th August 2020

Week 3: Capitalism

Why do we work?

We work in order to satisfy our needs, but are these needs negotiable or they are
defined by some system (social integration or systemic integration)?

Satisfaction of needs

Ibn Khaldun (1332-1406)

Animals can do things on their own basically, they know how to hunt, get food to
survive.

However, we humans cannot do things on our own because we do not have strength.
The one way is that human get together as a group (co-operate) and work out a way to
survive (building shelters, hunting, getting foods), hence our basic needs are satisfied.

Karl Max (1818-1883)

“The first historical act is thus the production of the means to satisfy these needs (etc.
eating, drinking), the production of material life itself”.

Humans also become better and better on satisfying the needs as history goes on,
which means we do not just make sure we can survive (basic level of needs), we now
can talk about luxury and even higher levels of needs.

How we socially organise the satisfaction of needs defines the kind of

civilisation/society we find ourselves in.
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Mode of production (the way a society organises the satisfaction of

needs)

The slave mode of production: Pre-modern work societies

 Property rights: Slaves as a kind of property that can be bought or sold.

 Territory & geography: Greek and Roman antique societies were centred on
city-states. Economic activity was based on countryside. Agriculture is the
main way of production (division labour of slaves who are forced to work and
the owners of the slaves who live and rule).
 Technology & Transport: Technique was simple (mainly works with hands
and simple tools). Transport was not a massive thing and the main way is
waterways (ship things across the sea: easiest way).
 The workforce: Slavery. Work = political unfreedom.
 Economic growth: Through geographical conquest, expand economically
means expand the land base. More slaves work on the expanding land.

Feudalism (feudal mode of production): Pre-modern work societies

 Property rights: Aristocracy own the land (lords, dukes, kings). Serfs and
peasants work on the land as part of landownership. Land as property cannot
be sold.
 Territory & geography: A deal made between farmer on the land and the
lord. Farmers produce food and get military and political protection in return.
Cities have their own economic dynamics now.
 Technology & Transport: Pretty much the same as before. Limited
technology (still using animals) and limited way to transport goods (mainly
waterways).
 The workforce: Peasantry which tied to the land. Feudal lords collected taxes
and surplus from the peasant.
 Economic growth: Military expansion (conquest, colonisation).
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Feudal hierarchy

Based on hierarchical dependencies, the top depends on the bottom to produce

stuff to satisfy the needs where does the king get the food from.

Capitalism (capitalist mode of production): modern societies

 Property rights: Anyone can sell, buy, own or trade freely in order to make a
living. The property is now private.
 Territory & geography: Economic expansion depends on the use of
resources (resources based production: etc. oil, gas, coal). Nation-state
becomes the major sphere for economic activity, and we enter the age of
globalisation. Dealing with global economy the satisfy the needs.
 Technology & Transport: Technological advances since industrialisation
(ongoing). Now the goods can be transported through trains, trucks and so on.
 The workforce: Workers are not serfs and have to sell their labours to the
owners. Technology creates and kills job. Complex division of labour.
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 Economic growth: based on growing of efficiency and exploitation of

knowledge and finance. Price mechanism. It is important to know what needs
are actually, what do people really want?

Slave/feudal modes of production: Production for use – focus on

immediate satisfaction of needs

Capitalist mode of production: Production for profit - focus on profit

making.

Post-industrial work societies

1. Service economy

From agriculture and manufacturing to services now.

2. From blue collar to white collar

From mechanical work to work in the office.

3. The primacy of theoretical knowledge

Technology is becoming much more complex, so we need more skills and knowledge
to understand (learning, training, education).

4. Economic forecasting

New technologies enable us to predict and make decisions.

5. Dependence on innovation

The invention of the method of invention.

SOCI2050 14th August 2020