SOC 0007 Chapter Notes - Chapter 2: Bipartisan Campaign Reform Act, Interlocking Directorate, Plutocracy
Document Summary
Wealth and power: the bias of the system. Marx hypothesized that capitalism would lead to monopolies. Shared monopoly: when four or fewer companies control 50% or more of the industry. Megamergers: time and aol warner, disney capitol cities, abc, nbc comcast. Negative consequences: increases centralization of capital which reduces capitalism and raises prices for customers, increases power of huge corporations over workers, unions, politicians, and governments, reduces the number of jobs, increases corporate debt, it is nonproductive. Interlocking directorate: the linkage between corporations that results when an individual serves on the board of directors of two companies (direct interlock) or when two companies each have a director on the board of a third company (indirect interlock) Globalization has led corporations to move to low-wage companies to increase profits. This dries up unskilled and semiskilled jobs in the us and increases discontent among people and increased welfare costs.
