The Economic Downturn and its Impact on Social Capital
The economic downturn has produced a decline or shift in social capital (also known as degradation in social capital) in several ways over the years (Putnam, 1995). The concept of social capital relies around a person's family, friends, and numerous others who can be contacted in times of distress. America has been going through tough economic challenges in recent years. Increased inflation is a hot topic these days. As a result, Americans now feel "busier" than they did previously (Putnam, 1995). As a result, many of them withdraw from social activities due to time constraints. Furthermore, research have shown that unemployed people tend to avoid community life. Another reason for people being busy is that most Americans have multiple jobs. According to the Bureau of Labor Statistics, the number of multiple job holders has increased to over 7.8 million by September 2016. People do this to cater for their many needs and pay their student loans since a single job is not enough to combat the high cost of living (Davidson, 2016).
Division and Exclusion: Consequences of Economic Hardships
In most cases, the bad economic times will lead to the division of people into groups, the rich and the poor, as people will want to associate with those whom they belong to the same group. The rich will, therefore, be able to confront poverty and vulnerability and take advantage of new opportunities. The division will also lead to the poor getting excluded from specific events that could make them secure employment and change their lives. The division will, therefore, lead to erosion of social capital. The rich will also start exploiting the poor (Woolcock, n.d).
References
Davidson, P. (October 17, 2016). The job juggle is real. Many Americans are balancing two, even three gigs. Retrieved from https://www.usatoday.com/story/money/2016/10/17/job-juggle-real-many-americans-balancing-two-even-three-gigs/92072068/
Putnam, R. D. (1995). Tuning In, Tuning Out: The Strange Disappearance of Social Capital in America. PS: Political Science and Politics, 28(4), 664.
Woolcock, M. (n.d.). The place of social capital in understanding social and economic outcomes. Retrieved from http://www.oecd.org/innovation/research/1824913.pdf
