Describe the functionalist perspective on economy and work in the U.S

Question

What will be an ideal response?

Answer 1

Functionalists view the economy as a vital social institution because it is the means by
which needed goods and services are produced and distributed. When the economy
runs smoothly, other parts of society function more effectively. However, if the
system becomes unbalanced, such as when demand does not keep up with production,
maladjustment occurs. The business cycle is the rise and fall of economic activity
relative to long-term growth in the economy. From this perspective, peaks occur when
"business" has confidence in the country's economic future. During a peak, or
expansion period, the economy thrives: Plants are built, raw materials are ordered,
workers are hired, and production increases. In addition, upward social mobility for
workers and their families become possible. The American Dream of upward mobility
is linked to peaks in the business cycle. Once the peak is reached, however, the
economy turns down because too large a surplus of goods has been produced. In part,
this is due to inflation—a sustained and continuous increase in prices. Inflation erodes
the value of people's money, and they are no longer able to purchase as high a
percentage of the goods that have been produced. Because of this lack of demand,
fewer goods are produced, workers are laid off, credit becomes difficult to obtain, and
people cut back on their purchases even more, fearing unemployment. Eventually, this
produces a distrust of the economy, resulting in a recession—a decline in an
economy's total production that lasts six months or longer. To combat a recession, the
government lowers interest rates (to make borrowing easier and to get more money
back into circulation) in an attempt to spur the beginning of the next expansion period.
t'>concentration within a particular industry (such as Standard Oil Company). An
oligopoly exists when several companies overwhelmingly control an entire industry
(such as the music industry). A shared monopoly exists when four or fewer
companies supply 50 percent or more of a particular market (such the "Big Three"
U.S. automobile manufacturers).