Capitalism and socialism are the two primary types of economic systems in the world today. Capitalism involves private ownership, the pursuit of profit, and competition for profit, while socialism involves the collective ownership of goods and resources and efforts for the common good. Several nations practice democratic socialism, which is meant to combine the best of capitalism and socialism.
According to functionalism, the economy makes society possible by providing essential goods and services, while work gives people income and self-fulfillment. According to conflict theory, work is alienating, and the economic elite uses its control of the economy to maintain their elite position. Symbolic interactionism focuses on social interaction in the workplace and on how they perceive the work they do.
Problems in work and the economy include the following: (a) the loss of jobs and wages; (b) the decline of labor unions; (c) unemployment; (d) corporate misbehavior; (e) rising economic inequality; (f) tax evasion; and (g) workplace crime.
Social reforms based on sound social science research are needed to improve work and the economy. Two important reforms would involve stricter enforcement of laws against racial discrimination in hiring and employment and of penalties for corporate crime.
