CHAPTER EIGHT- Manufacturing, Mining, and Agriculture (Part 1)
(Outline Prepared by E. Gough)
 
 


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Economic activity occurs in three principal sectors: extractive, manufacturing, and services. Extractive industries like agriculture, forestry, fishing and mining remove a product from the environment. Manufacturing turns these products into more useful forms. Services include financial and accounting, medicine, entertainment and recreation, education, government administration and social welfare.

Our society is often labeled as postindustrial, although we have not moved beyond being an industrial society. We instead are able to produce more with fewer workers. This is referred to as an advanced industrial society with a small but highly productive extractive sector and a growing service sector.

Agriculture

Agricultural productivity drastically increased in the twentieth century; machinery, fertilizers and improved strains of crops and grains have increased productivity and reduced the number of workers needed. Large mechanized producers are replacing the smaller farmers of yesteryear.

Rising fuel and credit prices have increased the costs of production as farm prices fall. Only farmers with below-average production costs can survive in such a market. The U.S. Department of Agriculture estimated that by 2000 over 75% of the nation’s food supply would be provided by only 50,000 farms.

Technological advanced can greatly help or harm farms. They can

increase yield, but many are not able to afford this new technology or compete with those that have it. Weather patterns, infestations and diseases al cause dramatic changes in yield. Fixed costs (costs that farmers must pay regardless of crop price, such as for equipment) can average more than 50% of income. Farmers often accumulate large debts as a result of increasing fixed costs. The U.S. government attempts to reduce the decline of small farmers by providing credit for farmers and supporting fixed prices for selected farm goods. Under these guidelines, farmers receive a minimum price for their goods, but this has been helping the larger farmers rather than smaller farmers. Even with government subsidies, the world competition is ever growing.

Farmers are becoming more interested in securing advantages available to other workers like regular employment, health insurance, accident insurance, retirement benefits and unionization. Among the three million farm workers, half a million work full time (250 or more days a year), half a million work are long-term seasonal workers, and the remainder are short-term seasonal workers. Cesar Chavez’s efforts for the rights of the farm workers helped shape the United Farm Workers, who today still continue n their efforts.

Forestry

Like agriculture, forestry requires a high degree of skill. Mechanization in the harvesting of pulpwood has drastically changed the nature of skills that are needed. These machines displace worker skills and increase accident rates. Logging has higher fatality rates than any other industry. Forestry is also very vulnerable to price fluctuations, despite the abundance of the raw materials.

Fishing

The largest exporter of fish is Canada with 2 million tons of catch per year. Ocean fishing was once expected to provide relief for the problem of world hunger, but annual catch has increased only 1% because of the over fishing of coastal watersheds and increased fuel prices. Aquaculture is a potential remedy to this problem, where fish are raised in ponds or fish ranches (large, floating cages under the sea).

Mining

Mining is based around a sense of purpose and collective identity, built on twin pillars of shared group responsibility above and below ground. The isolation of miners creates a shared identity called occupational communities. The work ethic demands that standards of safety and efficiency be met with competition between work crews to produce the most tonnage. Group solidarity is intensified by the dangers they face.

Construction

Construction workers take a great pride in their work with a high level of skill and job autonomy. Because it is spatially dispersed and much is skilled craft work, construction is difficult to supervise. Inspection of work is usually after the job has been completed. Construction activity has slowed significantly because of strapped government revenues for expansion and repairs of streets, highways and bridges.

Manufacturing

Manufacturing workers can be broadly classified as craft workers (skilled workers), machine operators, assemblers (semiskilled workers) and laborers (unskilled workers).

Under the label of skilled craft workers there are 13 million workers, with 4 million as precision production operators, 4 million as mechanical repairmen and 4 million in construction.

Skilled workers typically learn their trade through an apprenticeship program. Most programs are jointly administered by a company and craft union, paying half wages during the training. Skills learned through the programs are the basis of craft workers’ pride, power, and claims of autonomy on the job.

CHAPTER EIGHT- Manufacturing, Mining, and Agriculture (Part 2)
(Outline Prepared by L. Atkins)
 
 

In 1992, 13 million workers were machine operators and assemblers.

Semiskilled - work requiring less than two weeks training.
 
 

Machine Operators and Assemblers

Stationary machines : over 5 million

Transportation: just under million

Textiles and Apparel: 1.2 million

Assemblers/testers and graders: Just under 2 million
 

Dealing with Repetitive Work - Jobs get boring and stressful when quotas are representative

- Some people like the boring repetition maybe because there is less
close supervision
 

Speed Skills - Frustration occurs among workers because of fast pace of machines
prevents quality in their work

- Pride of workers is down when the speed is intense; but recently speed
is slower and the workers can focus more on the quality instead of
quality
 

Adjustment Reactions - Working ahead or working harder to get ahead son e can take a break
later on

- Some tried the doubling up method>> one person doing two people's job
therefore one may take a break and then vice versa

- Management disagrees with these methods of working, but the employees
say that the quality of their work is better when they use one of these

methods; they believe this helps with the boredom and improves the
quality of their work

- the core economy gives more benefits to these workers than peripheral
economy>>> poverty level income; which minorities seem to belong to
 

Unskilled Labor - In 1992, 5 million workers were considered unskilled

- Jobs of this sort included: Materials handlers, equipment cleaners,
helpers, garbage collectors, stock handlers, hand packages, machine
feeders, and off bearers

- laborers are closely supervised due to the suspicion of laziness or
incompetence of workers with out that coercion
 

No Experience Needed - Very little training required for laborers, two weeks maximum; work
under real harsh conditions; women will stay with the job, men will just
walk off job when they get fed up with the conditions
Women and Minorities in Unskilled Jobs - Blacks and Hispanics over-represent unskilled work. Unskilled Workers Blacks 10%

Hispanics 12%

Women 18%

- Blacks are 23% of garbage collectors, machine feeders, etc.
 
 

Career Mobility - Laborers or unskilled workers have limited mobility and most of them
have no aspiration to move upward

- Women have more hope for mobility than men but that is still not much
 
 
 
 

Working Class Culture - working class has almost its own subculture; they take pride in their
work and share all their fears with other co-workers

- Working class get satisfaction at home not in the work place
 
 

Working Class Diversity - not just one subculture there are divisions in within that subculture:                             1) Skilled

                            2) Semiskilled

        3) Unskilled

- then they are divided by race, gender and ethnicity as well
 
 

Four Key Manufacturing Industries

    Automobiles

- World wide industry>>> over 20 million employees>>>>

-Reached 50 million cars produced by late ‘90's from 32 million in ‘78
 

Increased World Competition  
- Japanese, Western Europe, Eastern Europe, Latin America have taken the
market from the Americans

- Reason for decrease in American cars is that the foreign cars are
compact and better engineered

- (GM and Ford) American cars now are mostly contained with foreign
parts

- More layoffs, turnovers and absenteeism occur in American Auto
manufacturing>> we can beat the Japanese with these conditions

- Japanese can stop assembly line if needed to fix a mistake where
Americans can't

- Competition has brought about change in American auto industry
 

    Steel - Industrialized countries create decline in need for steel

- Localized near new industrializing areas such as Korea/ Taiwan
 

Outdated Equipment  
- With less demand on steel, the companies have begun to buy into stock
versus making outdated steel items

- Because of outdated equipment Japanese have taken what little steel
business Americans have away from us
 
 

Speciality Steel Products  
- The bright side of the steel company for American is the mini-mill>>>>
Scrap steel used for concrete reinforcement bars and light construction
products

- Increase of women in steel work report a decrease in sexual harassment

-no gender over powers another therefore slim to no sexual harassment
 
 

    Textiles - less stress then most others if a cutter (men)

- Seamstresses>>women

- increase in need from 1950 to 1990 because of synthetic fibers such as
rayon, polyester, etc.

- decrease from 32% to 25% because of foreign textiles such as Taiwan.
 
 
 

Mill Workers  
- least unionized because it is in the south

- white dominance>> pay more, more benefits, more power

- declining world market brings great increase in layoffs and cheap
labor of border plants
 
 

Sweat Shops Return  
- sweatshop >> long hours, no benefits, harsh/unsafe work conditions,
child labor

- sweatshops increased in textile business because of increase of
immigrants
 
 

Competition for Speciality Textiles  
- Some textiles gone to Italy and Germany which has close to if not
higher wages than American laborers

- Innovations have made it so Italy and Germany can customize textiles
and take advantage of new market trends

- US is more individualistic and Europe is more united in the textile
business
 
 

    Chemicals - Increased greatly>>>>tripled from 1939 to 1990

Capital Investment

-Continuous-process technology - raw materials enter the processing
system and go through the various stages of decomposition and
recomposition and components are extracted or added>>end result is
chemical compound liquid>> no hands on work except changing valves

- small environments; workers are mainly maintenance crews

- Stagnation has occurred in the more advanced countries
 
 

Wrong Policies at the Wrong Time 1) Downsizing at home and sent work overseas

2) Attempt to drive down wages at home

3) Manipulating Balance sheets and Profit margins
 
 

- Paper entreprenuerialism - buying and selling of productive assets in
attempt to make profit without any attention to investment in productive
capacity

- taking advantage of world wide networks

-Capital mobility>> ability to move capital>>> leave US

- use two tier wage system to knock down wages at home

- Strategies have brought more money to companies but hurt US economy

 
Plant Closing and Downsizing - helps company with more work for money but hinder folks at home Externalization - externalized>> tax payer or individual pays petty bills>> helps save
money for company

- see this advantage because then tax payer want company to leave

- increase in poverty
 
 

Lower Wage Alternatives - create jobs/ business that has low paying jobs to offer A Declining Middle - heightened pressures on jobs and wages

- created large prosperous working class
 

Financial Shell Games - Buy foreign products that were originally American made and just put
American name on it

- Keeps no increase on GDP because economy is good right now

- Trade Adjustment Act>> provides retaining benefits to workers

-Job Training Partnership>> brought retraining for redundant workers
 
 

Policy Options - Internationally recognized worker's rights- organized and bargain
collectively; minimum age for kids; acceptable work conditions>> wages,
hours, safety/health

-require warning, relocation, training& etc.


 
 
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