The economic system isn’t just about numbers on corporate spreadsheets. It is about people and power. It is tied up in cultural and religious beliefs. In many respects, it determines the lives we’re living. It isn’t an exaggeration to say that the future of life on Earth, from the livability of the climate to the survival of innumerable species, rests on the decisions we make within and about our economy.

In this chapter, we’ve laid some groundwork for thinking about the economy. We’ve examined types of economies, sociological perspectives on the economy, historical changes in the U.S. economy, and some social and ecological impacts of capitalism. We closed with an exploration of new perspectives and economic models designed to better respond to poverty, inequality, our financial crises, and climate change.

These new systems place real human and environmental needs at the forefront, and they aim to go beyond monetary social values so we can better engage with each other and the natural world. How well do you think those new models can serve societies and ecological systems?

Review of Learning Outcomes

This chapter has offered you the opportunity to:

• Identify different economic systems.
• Describe different sociological perspectives on economic change.
• Discuss ways that economic systems can change over time.
• Illustrate new economic models and perspectives designed to better serve society and the planet.

Key Terms

anarchism: a philosophical and political tradition advocating the abolition of all or most forms of hierarchy, including the state.

Anthropocene: the most recent geological epoch of time, beginning around the Industrial Revolution, in which humans have fundamentally transformed the living systems of the Earth

assembly line: a way for employers to increase economic efficiency by breaking the production process down to a series of small actions performed repetitively by workers.

calling: a Christian concept for work that is assigned to a person by God and that provides meaning and purpose to a person’s life.

capitalism: a type of economic and social system in which private businesses or corporations compete for profit. Goods, services, and many beings are defined as private property, and people sell their labor on the market for a wage.

Capitalocene: the geological epoch in which capitalism has reordered Earth’s natural systems.

class conflict: the structural antagonisms built into economic relationships.

communism: a philosophical and economic ideology within the socialist framework that advocates for public rather than private ownership, especially of the means of production.

doughnut economics: an economic model that balances essential human needs with planetary boundaries.

economy: a system for the production, distribution, and consumption of the goods and services within a society.

general strike: a strike of all workers within a society, not just the workers at one workplace or in one industry.

gross national happiness (GNH): a philosophy that guides the government of Bhutan and includes an index used to measure the collective happiness and well-being of a population.

historical materialism: a perspective that emphasizes the economy in explaining just about everything in society, and sees economic class conflicts as main drivers of social change and progress.

localization: a process of decentralization that shifts economic activity into the hands of millions of small and medium-sized businesses instead of concentrating it in mega-corporations.

Protestant ethic: a set of cultural and religious beliefs that value hard work, thrift, and efficiency in one’s worldly calling. It was theorized by Max Weber to have laid the groundwork for the rise of capitalism in modern Western society.

socialism: an economic system in which the means of production and natural resources are collectively owned, usually controlled by the government.

strike: a form of collective action when workers in a given workplace refuse to work until owners meet their demands.

the New Deal: a series of government initiatives under Franklin D. Roosevelt’s presidency, during the Great Depression. They focused on strengthening the economy by employing workers for public works and creating a social safety net with programs such as Social Security.

union: an organization of workers who work together to improve their wages and working conditions.

Comprehension Check

Licenses and Attributions for Conclusion

Open Content, Original

“Conclusion” by Ben Cushing is licensed under CC BY 4.0.

“Comprehension Check” was created by Veronica Vold and Michelle Culley for Open Oregon Educational Resources and is licensed CC BY 4.0.