Social Stratification: Market Economies and Development
Social Stratification in Market Economies
In joint ventures involving social and market economies, as well as within capitalist systems, a primary method economists use to address imbalances is income redistribution through taxation. These taxes can be direct or indirectly applied to initial economic activities, such as purchasing goods or using professional services (e.g., VAT). A secondary approach involves allocating state revenues to social policies, including scholarships, social security, and pensions, to support disadvantaged populations and partially rectify their economic situations through income distribution. Basic income, a universal payment from the state to every citizen, could offer economic protection and potentially equal half the minimum wage.
Communistic Approaches to Stratification
Communist societies aimed to eliminate private ownership of production means and capital accumulation, with the state managing the economy and distributing wealth. The goal was to abolish social classes, replacing exploiters and the exploited with a single proletariat class. In theory, the communist state controlled wages and prices, bypassing market forces. However, party elites often became exceptions to communist egalitarianism, accumulating power, prestige, and wealth that set them apart from the working class. In practice, a four-tiered social structure emerged: Communist Party leaders, skilled professionals, workers, and peasants.
Social Mobility: Movement Within Society
Social mobility refers to the ability to move within a society. Horizontal mobility involves a simple change of location, while vertical mobility entails moving up or down the social hierarchy. Upward mobility signifies attaining a social position with greater power, prestige, or income, while downward mobility represents the opposite. Upward mobility varies across societies, with some being more open than others. Open societies tend to be more stable and flexible than closed ones, as they offer greater opportunities for vertical mobility and accommodate ambitious individuals.
Factors Influencing Societal Development
Jared Diamond explores the complex question of why some societies are more developed than others. His research traces back to the Neolithic Revolution, approximately 13,000 years ago, when egalitarian hunter-gatherer societies began to transform. This revolution led to the independent development of livestock and agriculture in various regions. However, some locations were better connected to other populations, facilitating the spread of cultural and technological advancements, which in turn fostered economic development and the rise of cities, writing systems, and empires.
In addition to greater intercultural contact, frequent interaction between different populations also played a significant role in health and disease patterns.