Political Systems and Economic Systems www.glscott.org

Political Systems Governments can fall into 3 categories: Unitary- Federal government holds all authority and power Confederal- Local governments hold most power but give central government specific power Federal- Local and Federal government share power and responsibilities www.glscott.org

Political Systems Countries can have a variety of political systems. Three Main Types of Governments Autocracy Oligarchy Democracy www.glscott.org

Types of Government www.glscott.org

Jordan’s King Abdullah Autocracy Ruler inherits the throne by birth or military power Citizens do not have a right to decide laws. Examples: Monarchy, Dictatorship, Fascism Countries: Jordan- Monarchy Nazi Germany- Fascism N. Korea- Communist Dictator Jordan’s King Abdullah www.glscott.org

How do dictators keep power? Dictators can use their armies to arrest or attack protesters. Dictators often promise a better life, especially for the poor. Many countries have never had democracy, so they are used to having dictators. Some dictators get support from other countries, such as Soviet Union’s support for Fidel Castro in Cuba Miguel Diaz-Canel www.glscott.org

Oligarchy Small group of people hold/share power Gain power through wealth, military power, social status Citizens have little-to-no say in government Examples: Communism, Military Junta Countries: Thailand- Military Junta China- Communist Party www.glscott.org

Theocracy Religion is the source of power (usually oligarchy) Ruler usually believed to be divinely inspired Citizens do not have a right to decide laws. Countries: Vatican City- Ruled by the Catholic Church and Pope Iran- Islamic Republic of Iran www.glscott.org

Democracy Leaders rule with consent of the people Citizens have a say in the laws and politics Can be Direct or Representative Direct- Everyone votes on every issue Representative- Vote for representatives to make decisions Countries: United States England. www.glscott.org

Politics and Government What is politics? What are four ways people can participate in government? www.glscott.org

Geography and Government Types of boundaries: Natural Boundary- follows physical geographic forms Cultural Boundary- Separate areas with cultural differences (ie. language, religion) Geometric Boundary- Lines drawn with little-to-no consideration to geography or culture How can boundaries be reasons for conflict? www.glscott.org

QUICK REVIEW! https://play.kahoot.it/#/?quizId=c7af4d91-c05d-465f-92e8-1ac1ce500d55 www.glscott.org

Economics www.glscott.org

Why you should learn economics? www.glscott.org

What is economics? The study of how goods and services are produced, distributed, and consumed. The people who make goods or services are called “producers.” The people who buy goods or services are called “consumers.” www.glscott.org

3 Different Economic Systems 1. Traditional 2. Market/Free Enterprise/Capitalism 3. Command www.glscott.org

Traditional Economy Habit and custom determine the rules for all economic activity People find food for themselves and trade for needed goods. No companies or governments involved This system is found among herders or small farmers www.glscott.org

Market Economy People own companies and decide what to produce to make consumers happy. Sometimes called “capitalism” or “free-enterprise system” Capitalism= private ownership of business and property functioning to make a profit Free Market= Prices are set by businesses, supply and demand, competition, etc. without government interference Most are MIXED ECONOMIES- Government has some say but businesses are privately owned There really is no “pure market economy” in the world…most economic systems are a mixture of two of the different types of systems…this is called a mixed economy. Therefore, the USA has a mixed economy with characteristics of a market economy and a little bit of command system. www.glscott.org

Command Economy Government owns or directs means of production (land, labor, capital, managers) makes economic decisions about what should be produced, how the goods should be produced, and for whom. Examples: socialism and communism Workers arrive at a factory in the old Soviet Union in 1929. www.glscott.org

Venezuela’s President Hugo Chavez Command Economies In socialism, the government runs some industries, such as oil, and uses profits to pay for health care, education. Ex. Venezuela In communism, the government runs all industries, owns all property, sets wages, and prices, and people must do as they are told. Ex. North Korea Venezuela’s President Hugo Chavez www.glscott.org

Putting Politics & Economics Together Command Economies usually require autocratic rule Communist countries have been dictatorships in which leaders have tried to control all aspects of the country. Not all dictators are Communists. Some want capitalist companies to come in and create jobs Ex. Batista in Cuba before Castro. Democracies are sometimes capitalist and sometimes socialist. Voters decide by electing leaders and/or writing constitutions that fit the needs and views of the country www.glscott.org

Written Response In paragraph form, explain which political system and which economic system is the best. Why? What would a country need in order to have those systems (ie…education, resources, leadership, etc.) www.glscott.org