Introduction to Sociology

Functionalist Perspective

Someone taking a functional perspective will most likely view work and the economy as a well-oiled machine that is designed for maximum efficiency. The Davis-Moore thesis, for example, suggests that some social stratification is a social necessity. The need for certain highly skilled positions, combined with the relative difficulty of the occupation and the length of time it takes to qualify for it, will result in a greater reward for that job, and will provide a financial motivation to pursue advanced education (Davis and Moore 1945). This theory can be used to explain the prestige and salaries that go with careers only available to those with highly specialized educations and advanced degrees or other credentials.

The functionalist perspective would assume that the continued health of the economy is vital to the health of the nation, as it ensures the distribution of goods and services. For example, we need food to travel from farms (high-functioning and efficient agricultural systems) via roads (safe and effective trucking and rail routes) to urban centers (high-density areas where workers can gather). However, sometimes a dysfunction––a function with the potential to disrupt social institutions or organization (Merton 1968)––in the economy occurs, usually because some institutions fail to adapt quickly enough to changing social conditions. This lesson has been driven home recently with the bursting of the housing bubble. Due to risky lending practices and an underregulated financial market, we are still recovering from the after-effects of the Great Recession, which Merton would likely describe as a major dysfunction.

Some of this is cyclical. Markets produce goods as they are supposed to, but eventually the market is saturated and the supply of goods exceeds the demands. Typically the market goes through phases of surplus production and inflation, where the money in your pocket today buys less than it did yesterday, and recession, which occurs when there are two or more consecutive quarters of economic decline. The functionalist would say to let market forces fluctuate through these stages. In reality, to control the risk of an economic depression (a sustained recession across several economic sectors), the U.S. government will often adjust interest rates to encourage more lending—and consequently more spending and investment. In short, letting the natural cycle fluctuate is not a gamble most governments are willing to take.