Society and the Economy

Understanding society and the economy: The Four socioeconomic paradigms

Denise Mayden

Socioeconomic Paradigms

Each economic cluster is represented by a different socioeconomic paradigm. The different structural explanations of the economic clusters illustrate how to determine population density and concentrations of wealth.

Each paradigm represents a different economic cluster. Each listed combination of demographics equals an economic cluster, where each economic cluster corresponds to a socioeconomic paradigm. The socioeconomic paradigm explains the economic cluster and its relationship to society and the economy.

Economic Clusters

Socioeconomic – legal – employment – age – relationship composition

Socioeconomic – legal – employment – age

Socioeconomic – age – relationship composition

Socioeconomic – legal – employment

Socioeconomic – legal

Socioeconomic – relationship composition

Socioeconomic – age

Socioeconomic – employment

Legal – employment – age – relationship composition

Legal – employment – age

Legal – age – relationship composition

Legal – employment

Legal – age

Legal – relationship composition

Employment – age – relationship composition

Employment – age

Employment – relationship composition

Age – relationship composition

The demographic categories of the economic clusters are sociologically defined. Socioeconomic refers to socioeconomic status. Socioeconomic status is either upper-class, upper middle-class, middle-class, lower middle-class, working-class, or lower-class. Legal refers to legal status as a citizen of the United States. Legal status can range from US citizen to non-US citizen ex-convict. Employment refers to employment status, which is either employed, unemployed, or retired. Age refers to the chronological age of the person(s) being analyzed. Relationship composition refers to the presence of spouse and/or children, or other family closely related.

Determining population density (society) and concentrations of wealth (the economy), we look at how many where and how much of resources are there? With the understanding that a certain percentage of people will be underclass because the system of capitalism depends on it.

The most useful way of building and looking at economic clusters is to start with the common denominator. The common denominator here is socioeconomic status because the issue we are talking about deals with society (population density) and the economy (concentrations of wealth). The second common denominator is legal status, it is common, but only addresses a social issue. Third is employment, because employment is not an option for everybody all the time. Age is the fourth common denominator because it can be unknown. Relationship composition is last, because the description of a relationship can be different between cultures, so it is the least common denominator.

These economic clusters describe characteristics about people. They are measurements of socioeconomic hardships and freedoms. Having information about people without identifying the people who respond lets us determine the quality of public goods and services, and where maintenance and improvement can be made.

There are:

Eight socioeconomic clusters

Six legal clusters

Three employment clusters

One age cluster

And:

Number of times measured in a cluster –

Age (11)

Legal (10)

Employment (9)

Socioeconomic (8)

The demographics are inversely related, likely from correlation. The correlation of clusters to number of times the demographic is measured in the clusters is strongest with the best common denominator, which is the socioeconomic demographic. The least common denominator is age, likely to be measured more often to compensate for lack of correlation to society and the economy.

Four Socioeconomic Paradigms

The First Socioeconomic Paradigm

We give what we make, we take what we need.

The Legal Paradigm

Non-citizens do not grow GDP (Gross Domestic Product), citizens are more valuable.

The Employment Paradigm

People have to first have the option of employment to correlate to others of different employment status.

The Age Paradigm

People’s need for assistance changes with age. Steps can be taken to promote individual effort and well-being, but sometimes we need outside assistance, like babies, the elderly, and the sick.