Political & Economic Systems Ch. 4 Sec. 3

Jobs of any Govn’t Maintain social order Provide national security Provide social services to the people Support economic stability & growth

Levels of Govn’t Most will have national, regional, and local U.S., Texas, Sugar Land Two diff. ways of organizing them- Unitary system Federal system

Unitary System All key powers held by national govn’t (unified) National govn’t then creates the lower levels and gives them limited sovereignty Sovereignty = complete independence or self-rule Ex’s: United Kingdom & France

Federal System Powers are divided b/w national and state govn’ts. Supreme power is given to national (federal) level States have powers fed. govn’t cannot touch (sovereignty in certain areas) Ex’s: USA, Mexico, Canada, Brazil, India

Levels of Government Review Unitary Federal Confederate Strong Central Government Shared Powers Strong States Governments

Types of Govn’t How do they exercise authority? Who runs the government? 3 diff. categories: Autocracy Oligarchy Democracy

Autocracy Single person has all the power Two types: Oldest and most common Get power from inheritance, or force (military, police) Two types: Totalitarian Dictatorship Monarchy

Autocracy Totalitarian Dictatorship Controls all aspects of society & economy People have no say, no power to limit ruler’s axns Ex’s: Hitler, Stalin, Mussolini, Kim Jong Il

Autocracy Monarchy Absolute monarch (king/queen) has all power Typically inherited Ex’s: Saudi Arabia Constitutional monarch shares power with legislative branch Ex’s: UK, Japan

Oligarchy Small group of people who hold power Gets power by wealth, military, social position, religion Mostly in communist countries Leaders of communist party Most opposition is suppressed

Democracy Leaders rule with consent of the people (popular sovereignty) Comes from Greek words ‘demos’ = people, and ‘kratia’= rule Two types: Direct Representative

Democracy Direct- citizens vote and decide on all issues directly No country has direct Can only occur in small groups Representative- citizens elect reps to make decisions based on their needs Republics have ALL officials elected Ex’s: USA, France, UK UK is a democracy with a constitutional monarch

Types of Government Review Autocracy Oligarchy Democracy Rule by one Rule by group Rule by all

Economic Systems There are 3 basic questions to ask: What and how many goods & services are produced? How should the above be produced? Who gets the goods & services that are produced? Each country answers differently…

Frank and Earnest on Economics

Frank and Earnest on Free Market

Traditional Economy Rules & customs determined by habit, what the ancestors did Roles passed down thru generations Dad is farmer, son is a farmer Not a lot of individual choice People grow what they need to live Only in limited places Ex: Inuit society in Canada

Market Economy Decisions made by individuals and private groups Supply & demand ppl choose what to buy so businesses make what ppl want People choose what jobs they want & who they’ll work for Free enterprise/ capitalism Limited govn’t interference NO one has a PURE market economy

Market Economy Mixed Economy- free enterprise supported and regulated by govn’t Govn’t keeps competition fair, trade free, supports public’s best interest Ex: USA, Japan, Singapore

Command Economy Govn’t owns and directs the economy Decisions about production & distribution of goods & services Controls ‘means of production’ (land, labor, capital) Goal is to distribute G&S equally Taxes support social services to all citizens

Command Economy Socialism (France, Canada) Equally distribute wealth is goal Public ownership of means of production Typically found in democratic nations Ppl elect reps who make economic decisions on their behalf Can be under range of free enterprise If you make a surplus, you can keep the extra instead of “sharing” it

Command Economy Communism Equally distribute wealth, goods, get rid of social classes (Marxism) Govn’t makes all economic decisions Typically by force/coercion, no voice of ppl Communist Party Most decline w/o free decision making/ incentives (USSR) Ex’s: China & Vietnam now allow some free enterprise to promote growth; North Korea does not

Controlled by government Government controls Basic industries Communism (Command) Capitalism(Demand) Socialism Controlled by government Government controls Basic industries Controlled by market place