Question

Formulate an opinion from a functionalist, interactionist, or conflict perspective on the effects of global capitalism. You are going to write a letter to a child who is living today. In your letter you will address the implications of global capitalism for this child and his or her generation. Your letter needs to be accurate, but it should also be passionate, as you are trying to help this child understand why the topic is relevant to him or her. Specifically, in your letter you should:

• Summarize the development of and changes to economic systems from preindustrial society to today. Include a discussion of the economic order and the importance of economic activity. How has the division of labor changed, and what are social consequences of surplus wealth?

• Discuss the causes and consequences of global capitalism and of the control wielded by large corporations. As part of this discussion, include the social causes and effects (nationally and individually) of worker alienation and unemployment. What implications do all of these things have for the child’s quality of life, working life, and ability to find work?

Answer 1

Dear child,

I know you are ignorant of all the changes that are taking place around you but to make you aware of how this world has changed and what are the implications of these happenings on your life, I am sharing this letter with you.

First of all, I would like to tell you about global capitalism which means the ability of the holders of capital to extend their reach to everywhere around the globe to escape political uncertainty, taxes, accountability, and scrutiny, as well as the ability to use their capital to manipulate markets, governments, and public policy.

Then, the effects of this major phenomenon on your generation will be as follows:

• Corporations are no longer limited to producing within their home countries, they can, whether directly or indirectly, through contractors, employ people around the world in all aspects of production and distribution. This will directly make labor flexible as companies can relocate production to areas where labor is cheaper or more highly skilled making the competition for you in the labor market even tougher.
• Individuals and corporations from all over the world now invest in businesses, financial instruments like stocks or mortgages, and real estate, among other things, wherever they please, giving them great influence in communities far and wide and influencing the costs of living for an individual like you.
• Power operates on a global scale, and the manner it moves down through national, state, and local governments to impact the everyday lives of people all over the world will also ultimately affect your quality of life.

Now, before describing the development and changes in economic systems from preindustrial society to today, I would like to mention that a Preindustrial society refers to a specific social attributes and forms of political and cultural organization that were prevalent before the advent of the Industrial Revolution. With the Industrial Revolution, an era spanning from the 18th to 19th century in which the worlds of Europe and America moved from predominately rural farming areas to industrialized cities, life and economic activity began to change. With this change, we come to the era of industrialization. With the onset of industrialism, economic activity shifted from the rural countryside to the more industrialized cities. Industrialization increased material wealth, restructured society and created important new schools of philosophy. Most notably, average income and population began to exhibit unprecedented sustained growth. In the two centuries following 1800, the world's average per capita income increased more than tenfold, while the world's population increased over sixfold.

Then, gradually moving towards the Postindustrial Societies, we witnessed the birth of the Information Age. The transition spans from the advent of the personal computer in the late 1970s to the The Internet reached a critical mass in the early 1990s, with the public's adoption of the Internet in the two decades following 1990. The Information Age has allowed rapid global communications and networking to shape modern society due to the fast evolution of technology use in daily life.

As technology advances, workers are becoming increasingly productive, but the value of labor, and the demand for labor, are both decreasing. While productivity stands to increase dramatically, unemployment is also rising, and jobs are increasingly polarized into the following two categories: high-skill, high-wage jobs, and low-skill, low-wage jobs. Additionally, for the first time, workers are being forced to compete in a global job market, in which jobs tend to be attracted by countries with lower wages. Workers who perform easily automated tasks are being replaced by technology that will influence your ability to find a job. Still, I'm sure you will fight the competition and shine brightly.

Hoping the best for you !