Summary

1. The type of economy characterizing societies has changed over the centuries. With the development of agricultural societies, economic functions began to be separated from family functions. Industrialization increased this separation further, and factories and machines became the primary means of production. The development of postindustrial societies in the last few decades has had important implications for the nature of work and other aspects of social and economic life in modern societies.
2. Capitalism and socialism are the two primary types of economic systems in the world today. Capitalism involves private ownership, the pursuit of profit, and competition for profit, while socialism involves the collective ownership of goods and resources and efforts for the common good. The relative merits of capitalism and socialism continue to be debated; several nations practice democratic socialism, which is meant to combine the best of capitalism and socialism.
3. Globalization of the economy has significantly increased the social, cultural, and economic integration of world societies. Benefits include accelerated development and increased wealth, as well as the creation of international awareness. The drawbacks include the uneven distribution of the benefits of globalization.
4. Corporations are essential players in modern economic systems but remain quite controversial. They concentrate economic power in the hands of a few organizations and often act in a way that stifles competition and harms their own workers and much of the public.
5. The development of labor unions occurred amid a concerted effort by management to resist demands for wage increases and better working conditions. In the recent past, U.S. workers have faced declining wages in constant dollars, although this general trend obscures some important gender, race/ethnicity, and social class differences in wage trends. Postindustrialization has meant a loss of manufacturing jobs across the United States but especially in its large cities.
6. Unemployment, underemployment, and job alienation remain problems facing U.S. workers. Job alienation is probably less than what Karl Marx envisioned in a capitalist society, in part because workers develop workplace friendships.