Causes of the Great Recession and Social Theories - Paper Example

False concepts (Gilman)

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According to Gilman, the theory of false concepts, especially in regard to self-support would be that individuals are self-supporting persons. Gilman depicted that only the men who were hunters and savages proved to be self-supporting. The other individuals are part of a mans happiness and social life and the development that they get is part of social life.

Alienation (Marx)

According to Marx, alienation occurs in a fourfold aspect. This means that a man is alienated from the substances that he produces, alienated from the process of production, alienated from the community that he comes from and alienated from himself. According to Marx, economic alienation that occurs under capitalism is involved in the daily activities of man. The process does not only occur in the minds of a man in that there may be other forms of alienation such as the alienation of religion.

The Iron Cage (Max Weber)

According to Max Weber, the economic and technological relationships that organized and most importantly grew out of the capitalistic production became funder mental forces sin the society. This means thatone has to adapt to the society that he/she was born into in regard to the division of labor, and the hierarchical social structure. When analyzed, this theory shows that it is difficult for done to envision a life that is alternative to what they were born into.

Living as a neighbor (Addams & Chicago Womens School)

According to Addams, the concept of living as a neighbor evolved from the observation of the existing relationships among the poor people. Addam described the relationship as genuine and primitive. The relationships were characterized by the willingness to lend or borrow something amongst themselves.

Anomie (Durkheim)

Anomie according to Durkheim offers numerous explanations of the ills of the society for instance deviance and crime while at the same time providing an account for the repercussions of the actions committed.Durkheim asserts that an individual is a product of his social environment. This means that socialization initiates during birth and continues as the individual grows through language development and the interactions so that they have with other people. Double Consciousness (Dubois)

Double consciousness is a theory that describes the individual sensation of a feeling as though ones identity is divided into several parts, thus making it impossible or difficult to have one unified identity. This theory can be used to explain the 2008 economic crisis in that this theory rests on the basis of conscience collective. The prejudices that are set up by other communities such as the white people in America elicit self-disparagement or self-questioning.

Morals and manners (Martinean)

Martineaus concept of morals and manners is viewed as the central society of sociology in that she named it the social life in society. Martineau arguesthat the most vital aspect law of social life for individuals is happiness and as such, she devoted much of her time trying to comprehend why people have developed morals and manners sin the bid to achieve happiness.

Difference, Domination, & Equilibrium (Cooper & Wells-Barnet)

According to Cooper and Wells-Barnet, the key issue is how to ensure that all parties are empowered equally in any conflict so as to ensure that there is a dynamic negotiation of interests and issues.

Bailout Analysis

Causes Of The Great Recession

United states experienced a great recession that it had not experienced since world war two, the great recession took place in the year 2008. It was caused when most financial businesses invested in credit default swaps and mortgage backed securities heavily banks approved loan lower credit scores, savings and income. In which, the income could not afford the high cost of housing. The consumers also bought much more than they could reasonably afford, this was because of the low rate and easy credits. The government had failed to regulate the non depository banking this paved way for the shadow banking and loans were bundled and dumped on the open market to institutional buyers. Investment in other countries due to the globalization weakened the currency in that country that led the pushing of the jobs and the manufacturing to that country.

The key dimension of the bail out was that the government had previously planned to buy the credit default swaps by using the Troubled Assets Relief Program funds. The government used the fund to bail out the banks involved in the loss. It helped out the involved banks to reestablish itself so that it can return the money to the government. New regulations were introduced so that to prevent this situation to happen in the future. The decline of the housing prices helped on the balance sheets and portfolio of the financial institutions across the world. Different government policies have been effective in the standing institutions at crisis management this is relative to innovating legislations. Political response to the financial crisis to be fast, this is because every congressman would not want to have done nothing while else there was an election in November that year hence each congressmen were willing to settle the people who voted for them.

Marx Theory

Karl Marx was a British Economist who advocated the government spendings to response to the Great Depression of the 1930s.There was an argument that Karl Marx might have been after all, because some of Marx understanding of the capitalism shows that it could be used to explain the systems current crisis. It focuses on the irreconcilable differences between the societal classes that are bring about the current state.

According to Marx this state did not exist before the distinctions of class in the society. At the time when all people were hunters and gatherers, only the ruling class would seem to have an upper societal status than the rest. Karl Marx bailout response discussion seems to lean towards taking money away from the rich and giving it to the poor to facilitate income distribution. This will have an effect of turning the rich and the middle class against the communist perspective. This spells doom for the political class as the rich are always powerful enough to influence a majority towards their interests.

Under the circumstances the governments response is likely to be inclined towards to bailing out the rich, in this case the CEOs. The act of income distribution would be in good faith but will have undesired repercussions towards the government. By bailing out the rich first, the government ensures they have no moral standing ground for complains when it starts income distribution in favor of low income earners. This would therefore be a safer way for the political class to respond to the current state. Safer in the sense that the political class does not want to be on the receiving end of any societal class that is unsatisfied.

Marxs socialist ideas are prone to a lot of criticism as there is no scientific proof of their outcomes. He suggests that the rate of profits would rise in the face of rise in the face of socialism. This idea seems vague and baseless. In a socialist environment, one is bound to call into question the assurance of the commitment of all involved in a particular endeavor as opposed to a capitalist one.

Addams & the Chicago Womens School Theory

Jane Addams is a towering figure in the Chicago history. She became prominent between 1889 and 1910 due to her role in the reform in industrial capitalism. She appears to have been a very adamant socialist who believed in equality for all people. This theorist seems to have had an activist approach to the current state. This would involve actively advocating for equal resource distribution regardless of social class. This appears to have a corresponding effect of the government coming to help in some of the causes that were being advocated for. The political class wants to be on the better side of everyone and therefore, such an approach is bound to bring along such reactions from the government sooner than later.

Activism causes included; child welfare, equality and dignity for all and good industrial relations for low income Americans. Government intervention in these causes towards their positive side would be welcome. After all that was what the activism was all about. It is seen as the governments role to ensure all these privileges for the less privileged so as to bring them at par with the rich who are seen as more privileged.

As noble as Jane Addams intentions might appear, her theory is not able to ward away from criticism. It has a notion of being and independent thinker and going all out against what does not augur well with you. This is bound to attract a lot of controversy that may be a hindrance to any positive outcome that might be in the offing. Occasionally one will be branded names such as; socialist, communist, anarchist or feminist as in Addams case.

Jackson Theory.

Jackson theory delves into the personal responsibility of the struggling Americans. There seems to be a consensus among the elite class that those struggling have only themselves to blame. He looks at the contributions made by ordinary Americans towards presidential campaigns for preferred candidates yet they are struggling. There are calls of a $700 billion bailout from the congress for CEOs. According to Jackson it is a wonder that CEOs are being saved from a crisis of their own making. On the other hand, there it would be more detrimental to ordinary low income earners if this is not done. If the CEOs are not bailed out it would be difficult for them to offer employment to the low income earners. There is a trickle-down effect in the event of the bailout.

There is the concern that in the event of a bailout, it means that American taxpayers have to dig into their pockets and fork out $2333 for every man woman and child. The state has a role of cushioning the taxpayer against such burdens as well as doing what it takes to strengthen the economy for the benefit of everyone. The bailout will be a direct benefit towards the CEOs but low income earners have to wait longer to feel the effect. In fact it might make things harder for them at the preliminary stages due to the huge tax burden.

Jackson seems to be against the bailout. That is not very prudent as far better days for all are concerned. In as much it might causes a tax burden. It should be looked at as necessary evil. The theory fails to look weigh the repercussions of not undertaking the bailout and the long run outcome of doing so.

Conclusion

The three theories are inclined towards the poor faction of the society. They advocate for priority to be given to them. This is a noble cause, but it should not be at the expense of the rich. Marx theory suggests priority be given to the poor first while Addams theory advocates for equality. Addams theory would be a more appropriate way to respond the current state so as to cater for all factions of the society. Though this leaves doubt about how effective that would be in solving the current crisis. Marx theory suggests the redistribution of wealth while Jackson suggests that everyone should take responsibility for themselves.

By taking responsibility for themselves, Jackson seems to insinuate that the bailout should actually be funded by the rich faction themselves as the crisis is of their own making. There is numerical data to prove that the rich are in a position to fund this bailout. This is possible but some may not be rich anymore afterwards. This could have some negative implications on the low income earners who depend on them to provide jobs.

It would seem viable to bring equality into action to solve the current crisis. Both factions should take part in finding the solution. This would bring a mix of the discu...