CH-13-14 Problems in the Globalized Economy – Social Problems in a Diverse Society : Chapter Notes

This Document Contains Chapters 13 to 14 CHAPTER 13 Problems in the Globalized Economy CHAPTER SUMMARY Societies can be classified by their principal form of production: preindustrial societies with primary sector production; industrial societies with secondary sector production; and post-industrial societies with tertiary sector production. Canada today is probably best characterized as an advanced industrial society. Although the Canadian economy is a form of capitalism, it has some of the features of a mixed economy. Among the problems of the economic system in this country are the concentration of wealth in the hands of a limited number of people and corporations that exist today; transnational corporations—accountable to no single government—may increase these problems. The recent global recession has further compounded these economic issues in Canada and throughout world. LEARNING OBJECTIVES After reading Chapter 13, students should be able to: 1. Describe the recent recession, concentration of wealth, the national deficit, consumer debt, and corporate welfare in Canada. 2. Describe the role of transnational corporations in the global economy and in the Canadian economy. 3. Describe the Canadian economy and compare it with other forms of economic systems. 4. State and compare the functionalist, conflict, symbolic interactionist, and feminist perspectives on the Canadian economy. KEY TERMS capitalism corporate rich interlocking corporate directorates socialism transnational corporation (TNC) corporate welfare debt deficit economic concentration mixed economy monopoly multinational corporation (MNC) oligopoly pluralist model elite model power elite CHAPTER OUTLINE I. THREE MAJOR MODERN ECONOMIC SYSTEMS A. The Canadian economy is a form of capitalism: the primary motivation for economic activity is personal profit. The primary motivation in a socialist economy is the collective good of all citizens. For Karl Marx, socialism was an intermediate stage to an ideal communist society in which the means of production and all goods were owned by everyone; people would contribute according to their abilities and receive according to their needs. B. No economy is purely capitalist or socialist. Most are mixtures of both (a mixed economy). Sweden, Great Britain, and France have mixed economies known as democratic socialism—an economic and political system that combines private ownership of some of the means of production with governmental distribution of some essential goods and services and free elections. Although most industry in mixed economies is privately owned, there is considerable government involvement in setting rules, policies, and objectives. The government is also heavily involved in providing services such as health care, child care, and transportation. C. There are four distinctive features of “ideal” capitalism: private ownership of the means of production, pursuit of personal profit, competition, and lack of government intervention. Capitalism is based on the right of individuals to own property, including property that produces an income (e.g. factories and businesses). Capitalism is based on the belief that people should be able to maximize their individual gain through personal profit, which is supposed to benefit everyone, not just capitalists. Capitalism is based on competition, which is supposed to prevent excessive profits. Finally, capitalism is based on a lack of government intervention in the marketplace. According to this laissez-faire (“leave alone”) policy, also called free enterprise, competition in a free marketplace—not the government—should be the force that regulates prices and establishes workers’ wages. II. PROBLEMS IN THE GLOBAL ECONOMY A. Inequality Based on Uneven Development: depending on the major type of economic production, a society can be classified as having a preindustrial, industrial, or post industrial economy. 1) In preindustrial economies, most workers engage in primary sector production— the extraction of raw materials and natural resources from the environment. In this kind of economy, materials and resources are used without much processing. 2) In comparison with preindustrial economies, most workers in industrial economies are engaged in secondary sector production—the processing of raw materials (from the primary sector) into finished products. Work in industrialized economies is much more specialized, repetitious, and bureaucratically organized. 3) Post industrial economies are characterized by tertiary sector production, where workers provide services rather than goods as their primary source of livelihood. Inequality typically increases in post industrial economies. B. Transnational Corporations and Canada 1) Today, the most important corporate structure is the transnational corporation. Some transnational corporations constitute a type of international monopoly capitalism that transcends the boundaries and legal controls of any one nation. Of the one hundred largest economies in the world, 52 percent are private corporations and not national economies. In 2001, the world’s 65 000 transnationals generated over $19 trillion in sales. Transnationals dominate in petrochemicals, motor vehicles, consumer electronics, tires, pharmaceuticals, tobacco, soft drinks, fast food, financial consulting, and luxury hotels. Canadian transnational corporations deal predominantly in gold and other minerals, such as nickel, copper, oil, and gas. 2) Transnational corporations raise some serious concerns. Because they are big and powerful, they play a significant role in the economies and governments of many countries. But at the same time, they are not accountable to any government or regulatory agency. Transnationals do not depend on any one country for labour, capital, or technology. In the interest of greater profitability, they can locate their operations in countries where political and business leaders are accepting of their practices and few other employment opportunities exist. Another concern is that transnational corporations foster consumerism through advertising and strategic placement of their business operations around the world. Canada is host to many transnational corporations, primarily from the United States and Asian countries. III. PROBLEMS IN THE CANADIAN ECONOMY A. Recession 1) Despite a period of strong economic growth through the late 1990s and early into the 2000s, Canadians entered the global recession in a weaker position than ever before. The impacts of the recession will be felt in many years to come, as we struggle with growing national deficits and debt, growing consumer debt, and rising unemployment. 2) Unemployment affects everyone, but the hardest hit have been young people and people in Newfoundland and Labrador. The vulnerability of unemployed Canadians, coupled with high household debt, heavily compromises Canada’s ability to emerge quickly from the recession. As unemployment increases, Canada’s purchasing power is severely compromised. B. The National Deficit and Debt 1) A deficit refers to the situation when a government’s spending on initiatives and programs, along with the interest charges on its outstanding debts, exceeds its revenues in a given year. When governments run a deficit in any given year, they borrow money, with interest, which becomes a national debt—the amount of money borrowed by the government to offset its deficits. 2) Between the federal Liberals and Conservatives, over $200 billion in corporate tax cuts was handed out in recent years. As business has withdrawn its tax contribution, the Canadian government has fallen further and further into debt, as have governments all over the world. C. Consumer Debt 1) Canada boasts the ninth-largest economy on the planet. However, only 40 percent of Canadians stated that their standard of living had increased over the past 10 years—26 percent stated they were worse off financially. For many people, a heavy debt load is the reason why Canadian’s economy has not benefited everyone equally. Consumer debt is rising, and household debt was at an all-time high going into the latest recession. 2) By April 2008, consumer bankruptcy levels were already far ahead of previous years. It has been predicted that Canadians will declare bankruptcy at record numbers throughout 2009 and 2010. 3) Two factors contribute to high rates of consumer debt. The first is the instability of economic life in modern society; unemployment and underemployment are commonplace. The second factor is the availability of credit and the extent to which credit card companies and other leaders extend credit beyond people’s ability to repay. D. Concentration of Wealth 1) Economic concentration refers to the extent to which a few individuals or corporations control the vast majority of all economic resources in a country. Concentration of wealth is a social problem when it works to society’s detriment, particularly when people are unable to use the democratic process to control the actions of the corporation. 2) The concentration of wealth in Canada can be traced through several stages. In the earliest stage, most investment capital was individually owned. Canadian families like the Seagrams or the Irvings controlled whole segments of the Canadian economy. In early monopoly capitalism, ownership and control of capital shifted from individuals to corporations. 3) Under a system of advanced monopoly capitalism (1940 to present), ownership and control of major industrial and business sectors has become increasingly concentrated. Following World War II, there was a dramatic increase in oligopolies. These large corporations use their economic resources to influence the outcome of government decisions affecting their operations. 4) In advanced monopoly capitalism, mergers often occur across industries. That is, corporations gain near-monopoly control over all aspects of the production and distribution of a product by acquiring both the companies that supply the raw materials and the companies that are the outlets for their products. 5) Corporations with control both within and across industries often are formed by a series of mergers and acquisitions across industries, referred to as conglomerates combinations of businesses in different commercial areas, all of which are owned by one holding company. Competition is further reduced by interlocking corporate directorates-members of the board of directors of one corporation who also sit on the board(s) of others. Interlocking directorates diminish competition by producing interdependence. E. Corporate Welfare 1) Corporate welfare occurs when the government helps industries and private corporations in their economic pursuits. During the industrialization of Canada, corporations received government assistance in the form of public subsidies and protection from competition by tariffs, patents, and trademarks. Additionally, the federal government awarded huge tracts of land to encourage westward expansion. 2) Today, government intervention includes billions of dollars in subsidies given to corporations in the form of conditionally repayable loans, monies intended for job-creation and job-preservation schemes, and tax breaks to corporations. The majority of financial assistance recipients are among Canada’s largest and most profitable companies. Overall, most corporations have gained much more than they have lost as a result of government involvement in the economy. IV. PERSPECTIVES ON THE GLOBALIZED ECONOMY A. The Functionalist Perspective 1) This perspective assumes people generally agree on the most important societal concerns, including freedom and security, and the government fulfills important functions in these two regards that no other institution can fulfill. Contemporary functionalists identify four functions: A government maintains law and order, plans society and coordinates other institutions, meets social needs, and handles international relations, including warfare. 2) According to the pluralist model, (1) political leaders make decisions on behalf of the people through a process of bargaining, accommodation, and compromise; (2) leadership groups serve as watchdogs to protect ordinary people from the abuses of any one group; (3) ordinary people influence public policy through voting and participating in special interest groups; (4) power is widely dispersed in society (the same groups aren’t influential in all arenas); and (5) public policy reflects a balance among competing interest groups, not the majority group’s view. 3) Dysfunctions are inevitable, thus, it is important to sort out and remedy the elements of the system that create problems. According to this perspective it is not necessary to restructure or replace the entire system. B. The Conflict Perspective 1) Most conflict theorists believe democracy is an ideal, not a reality, in our society because the government primarily benefits the wealthy and politically powerful, especially business elites. According to the elite model (1) elites possess the greatest wealth, education, status, and other resources and make the most important decisions in society; (2) elites generally agree on the basic values and goals for the society; (3) power is highly concentrated at the top of a pyramid shaped social hierarchy, and those at the top set public policy; (4) public policy reflects the values and preferences of the elites, not of ordinary people; and (5) elites use media to shape the political attitudes of ordinary people. 2) According to C. Wright Mills, there is a hierarchical structure of power in which the rulers are the power elite. The corporate rich—the highest-paid CEOs of major corporations—are the most powerful because they have the unique ability to parlay their vast economic resources into political power. The next level is occupied by the Members of Parliament, special-interest groups, and local opinion leaders. The lowest (and widest) level is occupied by ordinary people, the unorganized masses who are relatively powerless and vulnerable to economic and political exploitation. 3) Sociologist G. William Domhoff describes a ruling class comprised of the corporate rich—a relatively fixed group of privileged people who wield sufficient power over political processes and serve capitalist interests. The corporate rich influence the political process in three ways: (1) financing campaigns of candidates favourable to their causes; (2) using loophole contributions to obtain favours, tax breaks, and favourable regulatory rulings; and (3) gaining appointment to governmental advisory committees, national commissions, and other governmental positions. 4) Some analysts who take a conflict perspective say that the only way to overcome problems in politics and the economy is to change the entire system since it exploits the poor, people of colour, women, gays and lesbians, people with disabilities, and others who are disenfranchised from the political and economic mainstream of society. C. The Symbolic Interactionist Perspective 1) This perspective views society as a dynamic process that is continually being created through human interaction and negotiation. In terms of political economy, people using this perspective study the interactions that occur between people within democratic processes and business negotiations. This perspective acknowledges that people from different racialized/ethnic, gender, and social class groups, and of different sexual orientations, experience the world in dramatically different ways, and their perspectives are essential to the project of understanding the microlevel patterns of human interactions in society. 2) A question asked by symbolic interactionists would be, “What happens when a large network of people come together to challenge the status quo?” Symbolic interactionists would focus on ways the media frame issues and a given group, as well as a comparative analysis of individuals’ accounts of events. D. Feminist Perspective 1) Feminist perspectives are as diverse as the women who develop them. While feminism as a whole has advanced women’s rights and institutional accountability in Canada, there is a wealth of diverse approaches that are responsible for these successes. They include: 2) Liberal feminists work to ensure that women have the rights and abilities to participate fully in political and economic spheres of social life. Their work from the 1960s to the mid-1980s dramatically increased the rights of and opportunities available to women in Canada. 3) Materialist feminists are concerned with class inequity and the widening gaps between different groups’ control over resources, participation in the production of knowledge, and control of power globally. Central commitments are to analyze, challenge, and work to change business practices, globalization initiatives, and development programs that continue to exploit women’s productive and reproductive labour. 4) Multicultural feminists maintain that global survival depends on meaningful exchanges of knowledge, understanding, and solidarity between peoples across the globe. Institutional, interpersonal, and internalized racism and their impacts on the lives of people such as domestic sweatshop factory workers and immigrant and refugee women and their communities are a primary concern for these feminists. 5) Radical feminists see women’s personal experiences as political and focus on developing strategies of resistance. This perspective critiques patriarchy and masculinist practices that construct women as passive and submissive. 6) Anarcha-feminists analyze the role patriarchy plays in subjugating women and believe that the state is inherently oppressive and should be abolished. Anarcha feminists view the struggle against patriarchy and the state as the same struggle. 7) Ecological feminists draw feminist, ecological, and materialist perspectives together in order to build an understanding of how political and economic activities such as free-trade agreements, transnational corporations, and war impact women, the natural environment, and the quality of life of people, animals, and the earth. V. PROBLEMS IN THE GLOBALIZED ECONOMY IN THE 21st CENTURY A. Many analysts think digital democracy—the use of information technologies such as the Internet and the World Wide Web—will dramatically change not only economic relationships but also how politics and governments are conducted. For example, digital democracy can be used to inform people about political candidates and issues. B. Access to political information is being radically democratized by the World Wide Web, cable access channels, and other new information technologies. However, critics point out that there are some major problems with trying to maintain a pluralist government imposed limits on speech. ACCESS THE REAL WORLD: ACTIVE ENGAGEMENT WITH PROBLEMS RELATED TO THE GLOBALIZED ECONOMY Focus on Community Action Have students interview local business owners or employees of non-franchised and non-chain businesses. They should ask business owners how free trade has impacted them. Do they encounter a lot of competition from big-box stores or larger chain businesses? How are their employee wages and rights influenced by free trade? Students should prepare a short report on what they found out. Next, have a class discussion about what each student found. Were there common themes that arose? Were small business owners and employees in support of free trade? Can the students agree on whether or not free trade hinders small businesses from operating? Focus on Theoretical Analysis Set up a panel discussion by functionalist, conflict, symbolic interactionist, and feminist “experts” to examine the recent global economic recession. One group should argue from the functionalist’s pluralism perspective; another should look at the issue from the conflict approach’s elite model; another should look at the interactionist perspective; while another should look at the issue using a combination of the feminist perspectives. Possible topics might include tax breaks, corporate welfare reform, or trade agreements with other nations. Have students present the panel discussion and engage other students in a conversation about the chosen issue. Encourage them to analyze the topic in light of their perspectives: functionalist, conflict, symbolic interactionist, feminist. Focus on Media Engagement Ask students to acquire recent annual reports from major corporations and information about Fortune 500 companies in online e-journals such as Fortune (http://money.cnn.com/magazines/fortune/) and Forbes (www.forbes.com). Ask students to think about the size and scope of many of today’s major corporations and to examine how the concentration of wealth and the corporate structure of transnational corporations make it impossible for the government of any one nation to control the activities of such organizations. Students should discuss the material they have examined in light of information in the chapter. Next, they should consider how the recent global recession has shown how problematic it is for transnational corporations to police themselves in regard to issues such as environmental pollution and abuse of workers. What kind of external body or government intervention is needed in order to enforce some type of agreed-upon rules and regulations for transnational corporations to follow? What sort of political climate is necessary for this to happen? Is it likely to occur any time soon? Why or why not? APPLYING CRITICAL THINKING THROUGH DISCUSSION 1. What factors do you think contributed to the recent global economic recession? Do you think this “crisis” could have been prevented? Answer: Several factors contributed to the recent global economic recession. Key among these were the subprime mortgage crisis in the United States, characterized by risky lending practices and the securitization of subprime mortgages, which led to a collapse in housing markets and financial institutions. Additionally, the interconnectedness of global financial markets amplified the impact of the crisis, as financial institutions worldwide suffered losses and credit markets froze. Other contributing factors included lax regulatory oversight, inadequate risk management practices, and excessive leverage in the financial system. Preventing the crisis entirely may have been challenging given the complex interplay of economic, regulatory, and behavioral factors. However, there were certainly opportunities to mitigate its severity through more robust regulation, oversight, and risk management practices. Greater transparency and accountability in financial markets, stricter lending standards, and early intervention to address systemic risks could have helped prevent the crisis from reaching the scale it did. Furthermore, addressing underlying structural issues such as income inequality, unsustainable debt levels, and speculative bubbles could have reduced the vulnerability of the global economy to financial shocks. While it may not have been possible to entirely avert a downturn, proactive measures to strengthen the resilience of the financial system and promote sustainable economic growth could have mitigated the severity of the recession and facilitated a quicker recovery. 2. Why, with Canada being the ninth-largest economy in the world, do we still have such high rates of poverty and unemployment? Answer: Canada's status as the ninth-largest economy does not guarantee equitable distribution of wealth and opportunities, leading to persistently high rates of poverty and unemployment. Several factors contribute to this disparity: 1. Structural Inequality: Despite overall economic growth, structural inequalities persist, with marginalized groups such as Indigenous peoples, racial minorities, and persons with disabilities facing systemic barriers to employment and economic advancement. Discriminatory hiring practices, lack of access to education and training, and inadequate social support programs contribute to their disproportionately high rates of poverty and unemployment. 2. Economic Dependency: Canada's economy is heavily reliant on resource extraction industries, which are susceptible to fluctuations in global commodity prices. Economic downturns in these sectors can lead to job losses and economic instability, particularly in resource-dependent regions, exacerbating poverty and unemployment rates. 3. Precarious Work: The rise of precarious employment, characterized by part-time, temporary, or contract work with low wages and minimal job security, has contributed to income insecurity and poverty. Many Canadians are trapped in precarious employment situations, unable to access stable, well-paying jobs with benefits. 4. Housing Affordability: Skyrocketing housing costs, especially in major cities like Vancouver and Toronto, have led to housing unaffordability, homelessness, and housing insecurity for many Canadians. High housing costs disproportionately affect low-income individuals and families, exacerbating poverty and limiting their ability to invest in education, healthcare, and other essential needs. 5. Inadequate Social Safety Nets: Canada's social safety nets, while robust compared to some countries, still have gaps and inadequacies that leave many individuals and families vulnerable to poverty. Insufficient social assistance rates, limited access to affordable childcare, and gaps in healthcare coverage contribute to persistent poverty and economic insecurity. Addressing high rates of poverty and unemployment in Canada requires a comprehensive approach that includes measures to address structural inequalities, promote inclusive economic growth, strengthen social safety nets, and prioritize affordable housing and employment opportunities for all Canadians. 3. How have transnational corporations changed the nature of national economies? What role have they played in the global economy? Answer: Transnational corporations (TNCs) have profoundly transformed national economies by expanding their operations across borders, creating complex networks of production, distribution, and investment that transcend traditional boundaries. Through globalization, TNCs have facilitated the integration of national economies into the global marketplace, reshaping the dynamics of trade, investment, and labor markets. One significant way TNCs have impacted national economies is through the globalization of production. By establishing subsidiaries, outsourcing manufacturing processes, and leveraging global supply chains, TNCs have reorganized production on a global scale, often seeking lower production costs, access to new markets, and specialized expertise. This has led to shifts in employment patterns, with implications for wages, job security, and labor standards in both home and host countries. Moreover, TNCs wield considerable influence over national policies and regulations through their economic power and lobbying efforts, shaping the business environment in ways that can either facilitate or hinder economic development. They often negotiate favorable terms with governments, such as tax incentives and regulatory exemptions, while also exerting pressure to deregulate markets and reduce labor and environmental protections. In the global economy, TNCs play a central role as key drivers of international trade and investment flows. They account for a significant share of global trade in goods and services, contributing to the expansion of global value chains and the interdependence of national economies. TNCs also serve as engines of innovation and technology transfer, driving productivity gains and fostering economic growth in both developed and developing countries. However, TNCs have also been criticized for their negative impacts on national sovereignty, environmental sustainability, and social equity. Critics argue that TNCs exploit disparities in regulatory regimes and labor standards to maximize profits, leading to environmental degradation, social dislocation, and economic inequalities. Moreover, the concentration of economic power in the hands of a few large corporations can undermine competition, stifle innovation, and exacerbate income inequality within and between countries. In summary, transnational corporations have profoundly altered the nature of national economies by reshaping production, influencing policy, and driving globalization. While they have played a central role in fostering economic growth and integration in the global economy, their activities raise important questions about governance, accountability, and the distribution of benefits and costs in the pursuit of sustainable development. 4. How do you think globalization will affect economic practices in Canada in the next 10 years? Answer: Over the next decade, globalization is likely to continue shaping economic practices in Canada in several ways: 1. Trade Agreements: Canada will likely continue to pursue and renegotiate trade agreements to facilitate global trade, with a focus on diversifying export markets and reducing trade barriers. 2. Technology and Innovation: Globalization will drive technological advancements and innovation, leading to increased automation, digitization, and integration of Canadian industries into global value chains. 3. Market Access: Canadian businesses will have expanded access to international markets, particularly emerging economies, through e-commerce platforms, digital marketing, and global supply chains. 4. Foreign Investment: Canada may see increased foreign investment in key sectors such as technology, renewable energy, and infrastructure, as global investors seek opportunities in a stable and resource-rich economy. 5. Labor Market Dynamics: Globalization may impact labor markets, leading to greater competition for high-skilled jobs but also creating opportunities for Canadians to work remotely for international companies or to participate in the global gig economy. 6. Environmental Sustainability: There will likely be a growing emphasis on environmental sustainability and corporate social responsibility as part of global supply chains, influencing Canadian businesses to adopt greener practices and technologies. 7. Supply Chain Resilience: Recent disruptions like the COVID-19 pandemic have highlighted the importance of resilient supply chains. Canada may invest in diversifying supply chains and reducing dependence on single markets to mitigate future risks. 8. Cultural Exchange: Globalization will continue to promote cultural exchange and diversity in Canada, influencing consumer preferences, culinary trends, and entertainment industries. 9. Policy Challenges: Policymakers will face challenges in balancing the benefits of globalization with concerns over income inequality, job displacement, and environmental degradation, necessitating proactive policies to mitigate negative impacts. 10. Geopolitical Shifts: Canada's economic practices may be influenced by geopolitical shifts, including tensions between major powers, changes in global leadership, and shifts in trade alliances, requiring agile diplomacy and strategic economic planning. Overall, while globalization presents opportunities for economic growth and innovation in Canada, proactive measures will be needed to address challenges and ensure that the benefits are shared equitably across society. 5. Do you agree with the recent Canadian government bailout of the auto sector and other corporate welfare strategies? Why or why not? Answer: Whether or not I agree with the recent Canadian government bailout of the auto sector and other corporate welfare strategies depends on various factors, including the specific circumstances, the potential long-term impacts, and the overall goals of such interventions. On one hand, government bailouts and corporate welfare strategies can be seen as necessary measures to prevent economic collapse, preserve jobs, and stabilize key industries during times of crisis. In the case of the auto sector, which is a significant contributor to Canada's economy and employment, government support may be deemed essential to maintain competitiveness and innovation in the global market. However, there are valid concerns regarding the effectiveness and fairness of corporate bailouts. Critics argue that such interventions can perpetuate moral hazard by rewarding risky behavior and mismanagement within corporations, ultimately burdening taxpayers and distorting market dynamics. Moreover, there's a risk of dependency on government assistance, which may undermine the incentive for companies to innovate, adapt, and become more resilient in the face of economic challenges. Additionally, the allocation of government funds towards corporate bailouts raises questions about priorities and resource allocation. Some may argue that public funds would be better invested in areas such as education, healthcare, infrastructure, and social welfare programs, which have broader societal benefits and address systemic issues such as inequality and poverty. Ultimately, the decision to implement government bailouts and corporate welfare strategies should be carefully evaluated based on their potential impacts, cost-effectiveness, and alignment with broader economic and social objectives. Transparency, accountability, and considerations of long-term sustainability are crucial in determining the appropriateness of such interventions in supporting industries and promoting overall economic prosperity. 6. How have international trade agreements such as NAFTA (North American Free Trade Agreement) changed the life of individual Canadians? Answer: International trade agreements like NAFTA have significantly impacted individual Canadians by creating job opportunities, lowering prices, and increasing consumer choices. NAFTA, implemented in 1994, facilitated trade between Canada, the United States, and Mexico, leading to a surge in cross-border commerce. For Canadians, this meant greater access to a wider variety of goods at potentially lower prices due to increased competition. Industries such as automotive, agriculture, and manufacturing experienced growth, creating employment opportunities across the country. Additionally, NAFTA opened up markets for Canadian exports, particularly in sectors like energy, forestry, and technology, boosting economic growth and contributing to higher standards of living. However, the agreement also faced criticism for its potential to undermine certain industries and for concerns related to environmental and labor standards. Nonetheless, NAFTA's influence on individual Canadians is undeniable, as it reshaped the economic landscape and altered the everyday experiences of consumers and workers alike. 7. Why are the problems of the Canadian economic system so closely linked to the global economic system? Answer: The Canadian economic system is deeply interconnected with the global economic system for several reasons. Firstly, Canada is a trading nation, heavily reliant on international trade for its economic growth and prosperity. The export of natural resources, such as oil, minerals, and timber, constitutes a significant portion of Canada's GDP, and changes in global demand and prices directly impact the Canadian economy. Additionally, Canada is integrated into global supply chains, with many industries relying on imports of raw materials, components, and finished goods from around the world. Moreover, Canada's financial system is interconnected with global financial markets, with Canadian banks and financial institutions operating internationally and participating in global capital flows. Changes in global financial conditions, such as interest rates, exchange rates, and investor sentiment, can have profound effects on Canada's economy, influencing borrowing costs, investment decisions, and overall economic stability. Furthermore, Canada is part of various international agreements and organizations, such as trade agreements like NAFTA (now USMCA), the World Trade Organization (WTO), and international financial institutions like the International Monetary Fund (IMF) and the World Bank. These agreements and organizations shape Canada's economic policies, trade relations, and access to international markets, tying its economic fortunes to the broader global economic landscape. Additionally, global challenges such as climate change, geopolitical tensions, and pandemics have far-reaching implications for Canada's economy, highlighting the interconnectedness and interdependence of countries around the world. As a result, the problems and vulnerabilities of the Canadian economic system are closely linked to developments in the global economy, necessitating coordinated efforts at both the domestic and international levels to address common challenges and promote sustainable economic growth and prosperity. AUDIO-VISUAL MEDIA FOR FURTHER EXPLORATION 30 Frames a Second: The WTO in Seattle—This video chronicles the events of the WTO and the “Battle in Seattle” from one filmmaker’s perspective. 2000. 75 mins. Bullfrog Films, www.bullfrogfilms.com. Another World is Possible—This video looks at some of the players and the issues in a worldwide people’s summit, post-WTO, post -FTAA, and post-G8. 2002. 24 mins. Bullfrog Films, www.bullfrogfilms.com. Democracy a la Maude—Maude Barlow cautions against “the rise of corporate rule,” arguing that agreements such as NAFTA and the Multilateral Agreement on Investment (MAI), enhance the international mobility of corporations at the expense of Canadian social programs and jobs. 1998. 61 mins. National film Board of Canada, www.nfb.ca. Plunder: The Crime of Our Time—This film investigates the unregulated fraud and theft that led to the market's collapse in fall 2008. 2010. 59 mins. Media Education Foundation, www.mediaed.org. The Emperor’s New Clothes—This film poses a powerful, sobering question: In this global war of cut-rate economies, are people on the losing side? The effects of economic agreements, specifically NAFTA, are analyzed. 1995. 53 mins. National Film Board of Canada, www.nfb.ca. Let’s Make Money—This film follows the trail of our money through the worldwide financial system. 2010. 107 mins. Bullfrog Films, www.bullfrogfilms.com. This is What Democracy Looks Like—This video chronicles the vents of the WTO protest in Seattle in 1999 from the varied perspectives of over 100 videographers attending the protest. Very strong imagery and excellent music combine to make this a powerful film. 2000. 72 mins. Independent Media Centre and Big Noise Films, www.thisisdemocracy.org. View from the Summit—This film addresses the protests against the Free Trade Area of the Americas (FTAA) summit in Quebec City in April, 2001. 2001. 75 mins. National Film Board of Canada, www.nfb.ca. WAL-TOWN The Film—In this feature documentary, 6 student activists visit 36 Canadian towns to take on 1 giant corporation. With youthful passion and often hilarious cultural jams, this film takes us to the frontlines of the ongoing debate over the company's increasing dominance in the Canadian retail market. 2006. 66 mins. National Film Board of Canada, www.nfb.ca. Who’s Counting? Marilyn Waring on Sex, Lies and Global Economics—Marilyn Waring demystifies the language of economics by defining it as a value system in which all goods and activities are related only to their monetary value and exchange. 1995. 94 mins. National Film Board of Canada, www.nfb.ca. CRITICAL READINGS Brodribb, Somer (Ed.). 1999. Reclaiming the Future: Women’s Strategies for the 21st Century. Charlotte Town, PEI: Gynergy Books. Editorial Collective. 2001. Resist: A Grassroots Collection of Stories, Poetry, Photos and Analyses from the Quebec City FTAA Protests and Beyond. Halifax, NS: Fernwood Publishing. Gibbs, Terry and Garry Leech. 2009. The failure of Global Capitalism: From Cape Breton to Columbia and Beyond. Sydney, NS: Cape Breton University Press. Gutstein, Donald. 2009. Not a Conspiracy Theory: How Business Propaganda Hijacks Democracy. Toronto, ON: Key Porter Books Ltd. Quarter, Jack, Laurie Mook, and Ann Armstrong. 2009. Understanding the Social Economy: A Canadian Perspective. Toronto, ON: University of Toronto Press. Rebick, Judy. 2001. “PR Can Help Solve Canada’s Democracy Deficit,” in Policy Options, July-August 2001, Volume 22, Number 6, p. 15. Shrybman, Steven. 1999. A Citizens Guide to the World Trade Organization. Ottawa, ON: The Canadian Centre for Policy Alternatives and James Lorimer & Company Ltd., Publishers. Smelser, Neil J., and Richard Swedberg (Eds.). 1994. The Handbook of Economic Sociology. Princeton, NJ: Princeton University Press. Thomas, Mark P. 2009. Regulating Flexibility: The Political Economy of Employment Standards. Montreal, QC: McGill-Queens University Press. Urmetzer, Peter. 2003. From Free Trade to Forced Trade: Canada in the Global Economy. Toronto: Penguin Books. CHAPTER 14 Problems Related to Media CHAPTER SUMMARY When sociologists refer to the media or mass media, they are typically speaking of the media industries that influence people and cultures worldwide. Technology plays a major role in how various media industries change over time. Since the 1960s, media ownership has increasingly become more concentrated, resulting in convergence—the melding of the communications, computer, and electronics industries. However, problems with this trend including that it limits the news and entertainment that the public receives. Concentration is not limited to this country: Six conglomerates control most of the major media throughout the high-income nations of the world, making it possible for them to control messages and images around the globe. Although Canada is not involved in producing, distributing, and controlling media transnationally to the same extent as U.S.-based media companies, the Hollinger Corporation is an example that Canada still plays a role internationally. Framing of media content creates certain audience perceptions on aspects such as news content. No definitive answer exists as to the effect the depiction of violence in the media has on audiences. LEARNING OBJECTIVES After reading Chapter 14, students should be able to: 1. Define media industries, and explain the part that technology plays in how various media industries change over time. 2. Describe how media ownership changed during the twentieth century, and explain why some people favour media convergence whereas others do not. 3. Define framing and discuss its affect on media coverage. 4. Discuss the problems arising out of media depictions of violence. 5. State and compare the interactionist, feminist, functionalist, and conflict perspectives on the media. KEY TERMS framing net neutrality hegemony social learning theories hegemony theory theory of limited effects media industries media concentration CHAPTER OUTLINE I. THE POLITICAL ECONOMY OF MEDIA INDUSTRIES A. Media Ownership and Control 1) When sociologists refer to the media (or mass media), they are typically speaking of the media industries. Recent estimates show that the average person in North America spends more than one-half of her or his waking hours in some media-related activity, and many people spend more time in media-related activities than they do in any other single endeavour, including sleeping, working, eating, or talking with friends and family. 2) Ownership and control of the media changed dramatically during the 20th century. Since the 1960s, media ownership has become more concentrated; the trend has been for a few mega-corporations to own most media businesses and for companies to own more than one form of the media business. Those few companies and their monopolistic control over media content, production, and distribution have come to be known as Big Media. 3) Technology played a significant role in the development of media and in the changes in ownership and control. a. The introduction of cable TV and the development of more sophisticated satellites in the 1970s allowed cable TV systems to become interconnected throughout North America. Having a variety of channels to watch increased the number of cable TV subscribers, resulting in more broadcast stations being built and additional cable channels being created. b. The dramatic increase in cable viewers drastically reduced the audience share previously held by original television networks-and led to rapid changes in the ownership and control. The evolution of technology and business strategies within the media industry resulted in a few mega-corporations owning increasing proportions of the media businesses and companies owning more than one form of media business. c. These corporations also consolidated their holdings in other sectors of the media, ranging from film and music production to books and magazine publishing, and acquired new interests in technologies such as computers and direct broadcasting from satellite. 4) Media concentration results from one or more of the following: a. Concentration of ownership takes place within one industry. For example, 3 newspaper chains own 25 percent of all daily newspapers in Canada. Concentration occurs in part because small presses and independent media sources are not able to access the advertising revenue and large audiences that large corporations can. As a result, many small Canadian presses are closing. b. Cross-media ownership occurs when media companies own more than one type of media property. One giant media corporation may own newspapers, magazines, radio, and television stations. An example of such a corporation is the Canadian company Rogers Communications, which owns magazines, video stores, cable services, one third of the shares of AT&T Canada, cellular phone networks, viewer’s choice movie networks, radio stations, various television networks, and one television station. c. Conglomerate ownership occurs when a single corporation owns companies that operate in different business sectors. For example, the Universal/Seagram conglomerate owns theme parks, concert halls, motion picture production companies, movie theatres, and retail stores. d. Vertical integration occurs when the corporations that make the media content also control the distribution channels. For example, CanWest owns CanWest entertainment Inc., which is one of Canada’s largest integrated production, distribution, and financing companies of television and motion pictures. 5) Supporters of convergence (a melding of the communications, computer, and electronics industries) believe that much can be gained by these corporate strategies. a. The term synergy is used to describe the process used in capitalizing on a product to make as much profit as possible. Media analysts believe that synergy is created, for example, when a corporation acquires ownership of both production studios and TV networks. The products made by one branch may be distributed by other branches of the company in a more efficient manner than if separate companies were involved. Shaw Cable, the second largest cable TV operation in Canada, is an example of synergy. b. Most people in the media industries typically do not see consolidation as a problem. Supporters believe that concentration in media ownership ensures that Canadian voices are able to compete with those promoted by companies from the U.S. and by the international media market. Some media executives have acknowledged that the close link between their sectors may lead to conflicts of interest or accusations of collusion. B. Problems Associated with Convergence 1) Though concentration and conglomeration are profitable for investors and media executives, convergence limits the news and entertainment that the public receives. To many analysts, concentration reduces message pluralism, the “broad and diverse representation of opinion and culture,” available to the Canadian public. There is a concern that the bias of the small community of media owners influences the nation’s media content. 2) Other industries have used convergence in the media industries to increase their own market shares. Advertising agencies have found that convergence has allowed them to perfect the process of branding. This is especially true of the television and advertising industries that move to connect programs and commercials. 3) Convergence and the loss of open democratic debate are two of the recurring criticisms of mainstream media houses. According to analysts, other problems brought about by changes in media ownership and that work against facilitating democratic exchanges in society include (1) the decline of journalism as a public service profession, (2) constant pressure for all journalistic endeavours to be immediately profitable, (3) a decrease in the quantity and quality of international news available to Canadian audiences, (4) the quashing of public debate about the power of the media industries and how they deal with important social issues, and (5) a dramatic increase in the influence of powerful Ottawa lobbyists who represent the interests of the media conglomerates II. GLOBAL MEDIA ISSUES A. Six major media conglomerates—AOL Time Warner, Sony, Viacom, Disney, Bertelsmann, and News Corporation—control most of the publishing, recording, television, film, and mega-theme park business in the high-income nations of the world. Although Canada is not involved in producing, distributing, and controlling media transnationally to the same extent as U.S.-based media companies, Canada still plays a role internationally. For example, as of 2003, the Canadian company Hollinger Corporation owned media productions and publications in the United Kingdom, the U.S., and Israel. B. According to some analysts, the giant media companies are rapidly gaining ownership and control of both the hardware and software that will make it possible for them to control information around the globe. Some analysts believe the major media conglomerates will soon control about 90 percent of all global information. C. Although the global media industries provide news and entertainment to people who otherwise might not have information about what is going on in the world, critics assert that North American-based media giants undermine traditional cultural values and beliefs in other nations, replacing them with North American values such as materialism and consumerism through a process of “media imperialism.” In Canada, a primary challenge is to maintain control over Canadian ownership of, and content within, the mass media. D. Increasingly, Canadians are becoming aware of the basic filters that are used in the media to manage social debate and to “manufacture consent”, enabling people who are media literate to become informed consumers of media in Canada and critical thinkers about media bias. E. If the media are a crucial influence in shaping global cultural perceptions, then framing is a significant issue. When framing occurs in a news story, information is presented from a particular angle or point of view by putting a “spin” on the story. The danger is that media coverage or information falling outside the frame will not be covered or presented in mainstream media. F. Media bias, in the form of structural media bias, refers to the areas of life and work that are not covered in the media. This can distort how people view the world and can influence the priorities people develop. For example, in Canada, Hollinger Press shifted its reporting priorities to focus more exclusively on stock market and business concerns. This structural bias results in media coverage that suggests to Canadians that national and international business interests are now the most pressing concerns of the 21st century, while other issues, such as the environment or culture, are only intermittently important. III. POTENTIAL MEDIA EFFECTS A. Violence and the Media 1) A number of media analysts assert that the need of media industries to capture public interest and a large audience share has contributed to the use of violence or incidences of violence as a tool for selling newspapers, television programming, movie tickets, heavy metal and rap music, and other media-related commodities. A Canadian study reports that television violence affects children of varying age groups differently, and with children between the ages of 10 and 17 spending the majority of their time watching TV and listening to music, the overall impacts must be considered. 2) No definitive answer exists as to what effect the depiction of violence has on audiences. Most scholars do not believe that media cause aggressive behaviour in people. However, some studies have shown a relationship between at least short-term aggressive behaviour and media depictions of violence; others suggest that the media may prevent acts of violence by providing people an outlet for pent-up feelings and emotions. 3) Media advertising tends to treat women as sexual objects. When the media show women in compromised positions or as the victims of rape or other violence in order to sell products, they contribute to the ongoing subordination of women. Such depictions may also suggest that forcing sex on a woman is an acceptable norm. IV. PERSPECTIVES ON MEDIA-RELATED PROBLEMS A. The Interactionist Perspective 1) According to the theory of limited effects, people may not always be fully selective about what they watch or read, but they gather different messages from the media, and many people carefully evaluate the information they gain from various forms of media. Those who are poorly informed or have no personal information about a particular topic or issue are more likely to be affected by what other people, including reporters and journalists, say about the social concern. 2) Use and gratification theory suggests that people are active audience participants who make conscious decisions about what they will watch, listen to, read, and surf on the Internet. However, this theory assumes that people already have specific wishes or desires and will choose media sources that gratify their desires. 3) Social learning theory is based on the assumption that people are likely to act out the behaviour they see in role models and media sources. However, many factors other than the media come into play in people’s behaviour. 4) According to the audience relations approach, people interpret what they hear and see in the media by using their own cultural understandings as a mental filtering device. Factors include how much people already know about the topic and the availability of other sources of information. B. The Functionalist Perspective 1) The media have several important functions in contemporary societies: (a) providing news and information, including warnings about potential disasters such as an approaching hurricane; (b) facilitating public discourse regarding social issues and policies; (c) passing on cultural traditions and historical perspectives, particularly to recent immigrants and children; (d) being a source of entertainment; and (e) conferring status on individuals and organizations by frequently reporting on their actions. 2) According to the functionalist approach, the media are dysfunctional when they contribute to a reduction in social stability or weaken other social institutions such as the family, education, politics, and religion. For example, television has brought about significant changes in family interaction patterns. When dysfunctions occur, the problem should be addressed for the benefit of individuals, families, and the larger society. C. The Conflict Perspective 1) Conflict theorists typically link the media industries with the capitalist economy. According to this perspective (sometimes called hegemony theory), the process of legitimization takes place as media consumers are continually provided with information supporting the validity of existing class relations, and members of the working class are lulled into a sense of complacency in which they focus more on entertainment and consumption than on questioning existing inequalities in economic and social relations. 2) According to Michael Parenti, “media bias usually does not occur in random fashion; rather, it moves in the same overall direction again and again, favouring management over labour, corporations over corporate critics, affluent whites over inner-city poor [and racialized “others”], officialdom over protestors, the two party monopoly over leftist third parties, privatization and free-market “reforms” over public-sector development....” These built-in biases of the media reflect the dominant ideology which supports the privileged position of members of the capitalist class. Methods of manipulation include: (1) sponsor control over broadcasting decisions, (2) suppressing information by omitting certain details of a story or the entire story, (3) attacking a story or reporting primarily on one side of a story rather than giving the audience a balanced view of the diverse viewpoints involved, (4) negatively labelling some individuals or groups in such a manner that it appears to apply across the board to a large number of people, for example, “Islamic terrorists” or “inner-city gangs,” and (5) framing stories to convey positive or negative connotations through the use of visual effects, placement, and other means, to show how significant a social concern members of the media believe the topic should be. D. Feminist Perspectives 1) Second Wave feminist scholarship on media focused on the role of visual representation in women’s oppression, and critiqued male domination in the media and its role in reinforcing gender stereotypes that sustain socially endorsed and oppressive views of gender. Like conflict theorists, feminists are concerned with the role media has in shaping people’s values, beliefs, and attitudes, and the role it has in supporting and perpetuating hierarchies of oppression. 2) Women involved in alternative feminist media utilize the media as a political tool by articulating their own perspectives and demands, while representing and re-representing themselves. 3) Third Wave feminists study the impact of gender as well as class, racialization/ethnicity, sexual orientation, age, national origin, and physical and mental ability in their analyses of the roles mass media play in shaping the life conditions and life-choices of people in media texts and in real life. V. THE MEDIA IN THE TWENTY-FIRST CENTURY A. Problems associated with the media will continue, and many of the issues will probably become more complex. For example, some analysts suggest that the Internet and ecommerce will affect all aspects of life, particularly in high-income nations. Some analysts suggest that Canadian cities will lose more of their tax base to untaxed Internet commerce, bringing about a need for the restructuring of relations between cities, states, and the federal government. B. Existing and new forms of media offer many potential benefits, but they also will raise serious concerns about social life as many of us know it. ACCESSING THE REAL WORLD: ACTIVE ENGAGEMENT WITH PROBLEMS RELATED TO MEDIA Focus on Community Action Have students watch, listen to, and/or read local media everyday for a week. They should record all of the ways their local media portray poor people, homeless people, people of colour, Indigenous people, women, gay and lesbian people, and people with disabilities. What stereotypes are perpetuated? Why is this harmful to society? Do they see any media challenges to harmful stereotypes? Students should prepare a report on their findings. Next, have students turn their reports into a letter to the editor of their local newspaper, suggesting ways the media could be more balanced in their coverage of all Canadians. Focus on Theoretical Anaysis Have students familiarize themselves with the Canadian film based on Noam Chomsky and Edward Herman’s book of the same name, Manufacturing Consent (it can be downloaded for free at http://video.google.ca). Have students write a report using hegemony theory (from conflict theory) to illustrate how consent is manufactured in Canada. Have students cite actual televised news media to further their arguments. What conclusions do they reach with regard to media ownership and unbiased and fair media coverage? Students should share their conclusions in a class discussion. Focus on Media Engagement Have students compare independent online news media (such as The Tyee at http://thetyee.ca/) with mainstream privately owned online media (such as Global News at http://news.globaltv.com/index.html). They should perform a content analysis of both sites. What kinds of stories do they see in each? What are the differences in coverage when both news sites focus on the same story? Have them prepare a report on their findings to share with small groups of others in class. APPLYING CRITICAL THINKING THROUGH DISCUSSION 1. What arguments might be made for more stringent regulation of media content, especially when its intended audience is children and young people? What opposing arguments might be made? Answer: Arguments for more stringent regulation of media content aimed at children and young people center on protecting their well-being, psychological development, and safety. Proponents of stricter regulation argue that children are particularly vulnerable to the influence of media due to their cognitive immaturity and susceptibility to messaging. They contend that excessive exposure to violent, sexual, or inappropriate content can have detrimental effects on children's behavior, attitudes, and mental health. Moreover, concerns about online safety, including exposure to cyberbullying, inappropriate contact, and harmful online communities, underscore the need for regulatory measures to safeguard children's online experiences. Supporters of stricter regulation also emphasize the importance of parental guidance and empowerment, arguing that robust content regulations can assist parents in making informed decisions about their children's media consumption. They advocate for measures such as age-appropriate content labeling, parental controls, and restrictions on advertising targeted at children to mitigate potential harm. On the other hand, opponents of stringent media regulation argue for the importance of free speech, artistic expression, and individual autonomy. They contend that excessive regulation stifles creativity, innovation, and diversity in media content, limiting the range of experiences and perspectives available to children and young people. Moreover, critics argue that regulatory measures may be ineffective in achieving their intended outcomes, as children can access media content through various platforms and channels beyond traditional broadcasting. Opponents also raise concerns about censorship and government overreach, warning that overly restrictive regulations could infringe upon fundamental rights and freedoms, including freedom of speech and the press. They advocate for a balanced approach that promotes media literacy, parental involvement, and industry self-regulation as alternatives to heavy-handed government intervention. Ultimately, the debate over media regulation for children and young people reflects competing values and priorities, balancing the need to protect vulnerable audiences with respect for individual rights and freedoms. Striking the right balance requires careful consideration of the potential benefits and drawbacks of regulatory measures, alongside efforts to promote responsible media consumption, empower parents and caregivers, and foster a diverse and inclusive media landscape. 2. What do you think global media communications will be like in 2025? 2050? Will people around the world gain greater access to media resources such as the Internet and the World Wide Web? Why or why not? Answer: In 2025, global media communications are likely to be even more digitized, interconnected, and personalized. Advancements in technology, particularly in areas like artificial intelligence, virtual reality, and 5G connectivity, will enable faster, more immersive, and interactive media experiences. Personalized content delivery based on user preferences and behavior will become increasingly prevalent, enhancing user engagement and relevance. However, concerns about data privacy, misinformation, and algorithmic biases may persist, prompting discussions around regulation and ethical use of technology. By 2050, global media communications could undergo even more transformative changes. The integration of technology into everyday life may lead to seamless and ubiquitous media experiences, blurring the lines between virtual and physical realities. Enhanced virtual and augmented reality platforms could revolutionize how people consume and interact with media, offering immersive storytelling experiences and virtual social interactions. Moreover, advances in quantum computing and communication technologies may enable unprecedented levels of connectivity and data transmission, further shaping the landscape of global media communications. Access to media resources such as the Internet and the World Wide Web is likely to continue expanding globally, driven by ongoing efforts to bridge the digital divide and improve infrastructure in underserved regions. Initiatives to increase internet penetration, reduce costs, and improve digital literacy will contribute to greater access to media resources, empowering individuals around the world to connect, share information, and participate in global conversations. However, challenges such as censorship, regulatory barriers, and economic disparities may hinder progress in some areas, highlighting the need for collaborative efforts to ensure equitable access to media resources for all. 3. Is continued consolidation in the media a serious threat to democracy? Please explain. Answer: Continued consolidation in the media poses significant risks to democracy by undermining diversity of viewpoints, limiting public discourse, and concentrating power in the hands of a few dominant corporations. As media conglomerates acquire more outlets and control over various platforms, they gain the ability to shape public opinion, control the flow of information, and influence political agendas. This concentration of media ownership can lead to homogenized content, where diverse perspectives are marginalized or suppressed in favor of corporate interests or political biases. Furthermore, media consolidation can weaken journalistic independence and integrity, as reporters face pressure to conform to corporate agendas or risk losing their jobs. This erosion of journalistic autonomy can result in biased reporting, censorship, and the dissemination of misinformation, which undermines the public's ability to make informed decisions and hold those in power accountable. Moreover, consolidation in the media industry can stifle competition, reducing the number of voices in the marketplace of ideas and limiting opportunities for alternative viewpoints to be heard. This lack of diversity in media ownership and content can reinforce existing power structures, exacerbate social inequalities, and marginalize marginalized communities whose perspectives are often overlooked or misrepresented in mainstream media. Additionally, media consolidation can have adverse effects on local journalism, as corporate owners prioritize profit margins over community-focused reporting. This can lead to the closure of local newspapers, layoffs of journalists, and a decline in coverage of local issues, depriving communities of vital information and weakening civic engagement. In summary, continued consolidation in the media poses a serious threat to democracy by diminishing pluralism, undermining journalistic independence, stifling competition, and eroding public trust in the media. To safeguard democratic values and ensure a vibrant and diverse media landscape, it is essential to promote policies that foster media pluralism, protect press freedom, and encourage independent and diverse sources of news and information. 4. Should we be concerned about the ability of some companies to “buy” political influence? Why or why not? Answer: Yes, we should be concerned about the ability of some companies to "buy" political influence for several reasons: 1. Undermining Democracy: When companies can influence political decisions through financial contributions, it undermines the principles of democracy by giving disproportionate power to those with wealth, potentially distorting the will of the people. 2. Erosion of Public Trust: The perception that politicians are influenced by corporate interests erodes public trust in the political system, leading to cynicism, disengagement, and disillusionment among voters. 3. Policy Capture: Companies with significant financial resources may seek to shape policies in their favor, prioritizing their own interests over the broader public good, which can lead to policies that are not in the best interest of society as a whole. 4. Inequality and Injustice: The ability of wealthy corporations to influence political decisions can exacerbate inequality by perpetuating systems that benefit the wealthy at the expense of marginalized communities who lack similar financial influence. 5. Corruption Risks: The unchecked influence of money in politics increases the risk of corruption, with politicians being tempted to prioritize the interests of donors over the needs of their constituents. 6. Stifling Competition and Innovation: Companies that can buy political influence may use it to stifle competition, create barriers to entry for smaller businesses, and suppress innovation, ultimately harming economic dynamism and consumer choice. 7. Environmental and Social Impacts: Companies with vested interests in industries like fossil fuels or tobacco may use their political influence to block or weaken regulations aimed at protecting the environment or public health, leading to negative consequences for society. 8. Erosion of Fairness: Political influence bought by corporations can undermine the fairness of the political process, creating an uneven playing field where the voices of ordinary citizens are drowned out by the interests of powerful corporations. In summary, the ability of companies to buy political influence poses significant threats to democracy, public trust, equality, and the integrity of the political process. Addressing this issue requires robust campaign finance regulations, transparency measures, and efforts to reduce the influence of money in politics to ensure that political decisions are made in the best interests of all citizens, not just the wealthy few. 5. What implications, in addition to the ones discussed in the text, do you foresee if all network operators abandon net neutrality? Answer: If all network operators were to abandon net neutrality, several implications beyond those commonly discussed could emerge, affecting various stakeholders and aspects of the internet landscape. 1. Innovation Stifling: Without net neutrality protections, smaller startups and innovators may find it increasingly challenging to compete with established companies that can afford to pay for prioritized access to users. This could lead to a stifling of innovation as barriers to entry become higher, potentially limiting the diversity and creativity of online services and platforms. 2. Digital Divide Exacerbation: Net neutrality abandonment could widen the digital divide by creating tiered access to online content and services. Users with lower incomes or in rural areas may be relegated to slower or restricted access while those who can afford premium packages enjoy faster and more comprehensive internet access. This could deepen existing inequalities in access to information, education, and economic opportunities. 3. Censorship and Content Manipulation: Without net neutrality protections, network operators could potentially censor or manipulate online content based on their own biases or financial interests. This could lead to a distortion of information, limiting freedom of expression, and undermining the democratic principles of an open internet. 4. Impact on Free Speech and Democracy: The erosion of net neutrality could have profound implications for free speech and democracy, as it may enable powerful entities to control the flow of information and manipulate public discourse. Without equal access to all content, individuals may be exposed to biased or filtered information, making it difficult to form informed opinions and participate meaningfully in civic life. 5. International Ramifications: The abandonment of net neutrality by network operators in one country could set a precedent for similar actions in other countries, leading to a global trend of internet fragmentation and control. This could undermine efforts to maintain a free and open internet on a global scale, posing challenges for cross-border communication, trade, and collaboration. In summary, the abandonment of net neutrality by all network operators could have far-reaching implications beyond the immediate concerns of discrimination and unfair competition. It could impact innovation, exacerbate inequalities, threaten free speech and democracy, and have ripple effects on a global scale, fundamentally reshaping the internet as we know it. 6. Why might media concentration be a potentially greater social problem than concentration in other industries? Answer: Media concentration poses a potentially greater social problem than concentration in other industries due to its significant influence on public opinion, democratic processes, and cultural diversity. In democratic societies, a diverse and independent media landscape is essential for fostering informed citizenry and holding power to account. When media ownership is concentrated in the hands of a few large corporations or individuals, there is a risk of bias, censorship, and the prioritization of profit over journalistic integrity. Media concentration can limit the variety of viewpoints and voices represented in public discourse, leading to a narrowing of perspectives and potential manipulation of public opinion. Moreover, concentrated media ownership can stifle competition, reducing the diversity of news sources and limiting access to alternative viewpoints and critical analysis. In contrast to other industries where concentration may primarily affect market competition and consumer choice, media concentration has broader societal implications, influencing the dissemination of information, shaping cultural norms, and shaping public discourse. The consolidation of media ownership can also exacerbate inequalities by marginalizing minority voices and limiting opportunities for diverse representation in the media. Furthermore, media concentration can undermine the watchdog role of the media, diminishing its ability to hold governments and powerful entities accountable for their actions. This can have serious consequences for democratic governance, transparency, and the protection of civil liberties. Overall, media concentration presents a unique social problem due to its central role in shaping public opinion, fostering democratic participation, and preserving cultural diversity. Efforts to address media concentration often involve regulatory measures aimed at promoting diversity of ownership, ensuring editorial independence, and safeguarding the integrity of the media as a pillar of democratic society. 7. Which theoretical paradigm best explains problems related to media in the 21st century and why? Answer: Determining the "best" theoretical paradigm to explain problems related to media in the 21st century depends on various factors and perspectives. However, one paradigm that offers valuable insights is the critical theory approach, particularly within the context of media studies. Critical theory examines power dynamics, social structures, and the role of ideology in shaping media content and consumption patterns. In the 21st century, media conglomerates wield significant influence over public discourse and shape societal norms and values through their control of platforms and narratives. Critical theory helps to uncover the ways in which media ownership, corporate interests, and political agendas influence the production and dissemination of information. It highlights issues such as media consolidation, the commodification of news, and the erosion of journalistic integrity in pursuit of profit and ratings. Moreover, critical theory emphasizes the role of media in perpetuating inequalities and marginalizing certain voices, particularly those of minority groups and dissenting perspectives. Additionally, critical theory examines the impact of digital media technologies and platforms on society, including issues of surveillance, privacy, and algorithmic bias. The rise of social media has amplified concerns about misinformation, echo chambers, and the spread of divisive content, highlighting the need for critical analysis of the social, political, and economic forces driving these phenomena. While other theoretical paradigms, such as functionalism or symbolic interactionism, offer valuable perspectives on media and society, critical theory provides a comprehensive framework for understanding and addressing the complex challenges and contradictions inherent in 21st-century media landscapes. By critically examining the structures, processes, and power dynamics shaping media production, distribution, and consumption, critical theory offers insights into how media can be harnessed as a force for social change and democratic participation in the digital age. AUDIO-VISUAL MEDIA FOR FURTHER EXPLORATION Class Dismissed –This film navigates the steady stream of narrow working class representations from American television's beginnings to today's sitcoms, reality shows, police dramas, and daytime talk shows. 2005. 62 mins. Media Education Foundation, www.mediaed.org. The Codes of Gender—This film applies the late sociologist Erving Goffman's groundbreaking analysis of advertising to the contemporary commercial landscape, showing how one of American popular culture's most influential forms communicates normative ideas about masculinity and femininity. 2009. 73 mins. Media Education Foundation, www.mediaed.org. DreamWorlds 3—This film examines the stories contemporary music videos tell about girls and women, and encourages viewers to consider how these narratives shape individual and cultural attitudes about sexuality. 2007. 56 mins. Media Education Foundation, www.mediaed.org. Further Off the Straight and Arrow—This film acknowledges the expansion of LGBT representation on television and the resulting possibilities for inclusion and recognition opened up for today's gay youth. However, the program also raises questions about how this queer presence on television is shaped by the imperatives of the commercial media system. 2006. 61 mins. Media Education Foundation, www.mediaed.org. Game Over: Gender, Race, and Violence in Video Games—This film offers a refreshing dialogue about the complex and controversial topic of video game violence, and is designed to encourage high school and college students to think critically about the video games they play. 2000. 41 mins. Media Education Foundation, www.mediaed.org. Generation M: Misogyny in Media & Culture—This film looks specifically at misogyny and sexism in mainstream American media, exploring how negative definitions of femininity and hateful attitudes toward women get constructed and perpetuated at the very heart of our popular culture. 2008. 54 mins. Media Education Foundation, www.mediaed.org. Manufacturing Consent—Noam Chomsky and the Media: Highlighting Chomsky’s analysis and criticisms of the media, this film focuses on democratic societies where populations are not disciplined by force, but are subjected to more subtle forms of ideological control. 167 minutes. 1992. National Film Board, www.nfb.ca. The Mean World Syndrome: Media Violence and the Cultivation of Fear—this film examines how media violence forms a pervasive cultural environment that cultivates in heavy viewers, especially, a heightened state of insecurity, exaggerated perceptions of risk and danger, and a fear-driven propensity for hard-line political solutions to social problems. 2010. 51 mins. Media Education Foundation, www.mediaed.org. Mickey Mouse Monopoly—This film takes a close and critical look at the world these films create and the stories they tell about race, gender and class and reaches disturbing conclusions about the values propagated under the guise of innocence and fun. 2001. 52 mins. Media Education Foundation, www.mediated.org. Money for Nothing—This film succinctly explains how popular music is produced and marketed, and offers an accessible critique of the current state of popular music. 2001. 48 mins. Media Education Foundation, www.mediaed.org. CRITICAL READINGS Castells, Manuel. 2009. Communication Power. New York, NY: Oxford University Press. Fleras, Augie and Jean Lock Kunz. 2001. Media and Minorities: Representing Diversity in a Multicultural Canada. Toronto, ON: Thomson Educational Publishing. Freedman, Jonathan L. 2002. Media Violence and Its Effect on Aggression: Assessing the Scientific Evidence. Toronto, ON: University of Toronto Press. Hackett, Robert A, Richard Gruneau, Donald Gutstein, Timothy A. Gibson, NewsWatch Canada. 1999. The Missing News: Filters and Blind Spots in Canada’s Press. Aurora, ON: The Canadian Centre for Policy Alternatives/Garamond Press. Herman, Edward S. and Noam Chomsky. 1988. Manufacturing Consent: The Political economy of the Mass Media. New York, NY: Pantheon Books. McChesney, Robert W. 2001. “Global Media, Neoliberalism and Imperialism.” Media Channel. March, 52(10). http://www.mediachannel.org/ownership/ Ross, Sharon M. 2008. Beyond the Box: Television and the Internet. Malden, MA: Blackwell Publishing. Siegal, Arthur. 1996. Politics and the Media in Canada (2nd ed). Toronto, ON: McGraw-Hill Ryerson Limited. Sternheimer Karen. 2010. Connecting Social Problems and Popular Culture: Why Media is not the Answer. Boulder, CO: Westview Press. Wray, William. 2002. In the News: The Practice of Media Relations in Canada. Edmonton, AB: University of Alberta Press. Instructor Manual for Social Problems in a Diverse Society Diana Kendall, Vicki L. Nygaard, Edward G. Thompson 9780205663903, 9780205718566, 9780205885756