CHAPTER 13 The Economy and Politics

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Presentation transcript:

CHAPTER 13 The Economy and Politics Section 1: The Economic Institution Section 2: The Political Institution

Objectives: Section 1: The Economic Institution Compare and contrast the characteristics of the capitalist and the social economic systems. Discuss developments that have transformed the American economic system.

Economic Models of Capitalism and Socialism Section 1: The Economic Institution Economic Models of Capitalism and Socialism CAPITALISM: Factors of production are owned by individuals Forces of profit and competition regulate economic activity Minimal government interference

Economic Models of Capitalism and Socialism Section 1: The Economic Institution Economic Models of Capitalism and Socialism (continued) SOCIALISM: Factors of production are owned by the government Economic activity regulated by the government Pure form is communism

Economic Models of Capitalism and Socialism Section 1: The Economic Institution Economic Models of Capitalism and Socialism (continued) BOTH: Exist in industrial and postindustrial societies “Pure” forms are ideal types

The American Economy Section 1: The Economic Institution Rise of Corporate Capitalism – has changed the relationship between business ownership and control Economic Globalization – many of the large corporations are also multinational The Changing Nature of Work – shift from an industrial base to a service base due, in part, to technology E-Commerce – business conducted over the internet, which is based on information

Objectives: Section 2: The Political Institution Explain how the exercise of power varies by type of government Describe the major characteristics of the U.S. political system.

The Exercise Of Power Section 2: The Political Institution Traditional authority – power that is based on long-standing custom Rational-Legal – based on formal rules and regulations Charismatic – based on a leader’s charisma

The U.S. Political System Section 2: The Political Institution The U.S. Political System Dominated by two major political parties – Democrats and Republicans Includes interest groups and PACs, which help groups with minority views influence government decisions Has proportional representation, but debate exists over who holds power

The U.S. Political System Section 2: The Political Institution The U.S. Political System (continued) Consists of three branches of the government – the executive, legislative, and judicial Includes public participation, although voter participation varies and is relatively low overall