Political and Economic Institutions Chapter 13 Political and Economic Institutions http://blogs.menupages.com/philadelphia/white%20house.jpg Thomas Emanuele Trayce Thompson Ryan Canty Conor Aspel Nick Roux

Introduction This chapter is about the American political and economic systems. It focuses on the political institutions that guide our country, as well as the economic institutions that control the division of resources. A political institution has the responsibility of handling conflicts that arise from economics decisions. An economic institution, on the other hand, is the set of functions that concern the production and distribution of goods and services for a society.

Power and Authority Power is the ability to control the behavior of others, even against their will Power was originally defined by sociologist Max Weber People such as Martin Luther King, Jr. used power through their charismatic personalities Weber recognized another form of power known as coercion, or the use of physical force or threats to exert control http://www.writespirit.net/inspirational_talks/political/martin_luther_king_talks/martin-luther-king2.jpg

Authority Weber believed in a more stable form of power known as authority, or power accepted as legitimate by those subject to it Ex. Teachers have authority over students because students accept the results given by the teacher There are three types of authority: Charistmatic authority arises from a leader’s personal characteristics Traditional authority is when the legitimacy of a leader is rooted in custom Rational-legal authority is when power resides in the offices rather than the officials Used in most modern governments http://fairimmigration.files.wordpress.com/2009/03/cesar-chavez.jpg

Types of Political Systems Contemporary nation-states can be classified into three basic types: democratic, totalitarian, and authoritarian Decomcracy involves all citizens in self- government. We are more famililar with representative democracy, in which elected officials are responsible for fulfilling the wishes of the majority of citizens http://amphetamines.com/president-kennedy.jpg

Types of Political Systems (Continued) Totalitarianism is a political system in which a ruler with absolute power attempts to control all aspects of society Most well known example is Hitler and the Nazi party In the middle of these two systems is authoritarianism, or a polital system controlled by elected or nonelected rulers who usually permit some degree of individual freedom but do not allow popular participation in government Includes certain monarchies and military seizures of power Ex. Fidel Castro’s takeover of Cuba http://www.samliquidation.com/images/hitler1.jpg

Political Power in American Society The amount of real choice exercised through voting is limited Only candidates endorsed by a major political party has a chance to win Most attitudes and beliefs that are expressed as political opinions are gained through a learning process called political socialization. Can be formal, such as government class, or informal, such as family or the media http://blog.com.np/wp-content/uploads/2006/06/protesting_bharat_keshar_misbehave.jpg

Two Models of Political Power In a democratic society, two models of political power are evident- pluralism and elitism According to pluralism, political decisions are the result of bargaining and compromise among special interest groups An interest group is a group organized to influence political decision making Power is widely distributed throughout a society or community According to elitism, a community or society is controlled from the top by a few individuals or organizations Also known as the power elite, or the key people in each area who overlap to form a unified group http://msnbcmedia2.msn.com/j/msnbc/Components/Photos/070321/070321_gore_congress_hmed_9a.h2.jpg

Economic Systems Economic systems involve the production and distribution of goods and services Capitalism is an economic system founded on two basic premises: The sanctity of private property The right of individuals to profit from their labors Capitalism fosters the rise of monopolies, or companies that control a particular market, and oligopolies, combinations of companies working together to control a market http://i.zdnet.com/blogs/microsoft-monopoly.jpg

Socialism Different from capitalism is socialism, which believes that the means of production should be controlled by people as a whole The state owns and controls property All members of society share in the monetary benefits Sweden is an example of a socialist government Most nations incorporate a mixed economic system, using both public and private ownership http://rosenblumtv.files.wordpress.com/2008/01/mussolini090909.jpg Benito Mussolini

The Modern Corporation Corporations hold great importance in modern economic systems A corporation is an organization owned by shareholders Corporations gain more power through interlocking directorates, or joint board of directors Conglomerates also enhance the political power or corporations. They are networks of unrelated business operating under a single corporate umbrella Ex. Nabisco holds companies in tobacco, pet food, and other fields. http://www.andrews.edu/~delucam/nabisco.gif

Multinational Corporations The world is increasingly being influenced by multinationals, or firms based in highly industrialized societies with operating facilities throughout the world Ex. ExxonMobil http://www.acartoonist.com/Exxon.jpg

Work in the Modern Economy There are three basic economic sectors The primary sector depends on the natural environment to produce economic goods Ex. Farmers/Fisherman The secondary sector manufactures products from raw materials Ex. Factory Workers Employees in the tertiary sector provide services Entertainment and retail sales http://www.sustainableharvest.org/images/InternationalPrograms/BaloCornAlleyCropsPanama.jpg

Occupational Structure Occupations are categories of jobs that involve similar activities at different work locatiosn US is developed into two-tier occupational structure The core tier includes jobs with large firms holding dominant positions within their industries Pharmaceutical and aerospace firms The peripheral tier is composed of jobs in smaller firms that either are competing for business left over from core firms or are engaged in less profitable industries Agriculture or small scale retail trade http://www.gov.mb.ca/ctt/profiles/images/aerospace3_lg.jpg

Reducing Core Industry Employment Two main strategies are used by top management to reduce employment in core industries Downsizing is the process by which companies reduce the size of their full-time workforces Contingent employment involves hiring people on a part time or short term basis Much of this is due to new technology replacing the need for workers Video Clip http://www.celdf.org/Portals/0/Images/abandon%20rights%20at%20corporate%20gate%20cartoon.bmp

The End http://www.chromasia.com/images/international_fireworks_3_b.jpg

Group Participation Activity: Trayce Powerpoint: Thomas Vocabulary: Ryan Quiz and Candy: Conor Presentation and Video: Nick