Politics and the Economy Chapter 14 Politics and the Economy

Chapter Outline Political and Economic Institutions Power and Political Institutions Power and the State Individual Participation in U.S. Government Modern Economic Systems The U.S. Economic System Work in the United States

Two Kinds of Power Coercion is power based on fear by using force and intimidation. Authority is power based on socially accepted norms that maintain the right of some authority to wield power.

Three Types of Authority Traditional authority is rooted in established roles, like father, elder, or king. Charismatic authority arises from the exceptional personality that may sway and inspire others. Rational-legal authority is based on formal regulations and laws.

Power Concept Example “mowing the lawn” Power “I know you don’t want to mow the lawn, but do it anyway.” Coercion “Do it or else.” Authority “It is your duty to mow the lawn.”

Power Concept Example “mowing the lawn” Traditional Authority “I’m your father, and I told you to mow the lawn.” Charismatic authority “I know you’ve been wondering how you might serve me, . . . Rational-legal “It is your turn to mow the lawn; I did it last week.”

Perceptions of Government Responsibilities: % Who Agree with the Statement:

Comparison of Three Models of American Political Power Basic units of analysis Pluralist Interest Groups Power-Elite Power elites State Autonomy Government bureaucracy

Comparison of Three Models of American Political Power Source of power Pluralist Situational; depends on issue Power-Elite Inherited and positional; top positions in key economic and social institutions State Autonomy Control of personnel and budget of government

Comparison of Three Models of American Political Power Distribution of power Pluralist Dispersed among competing diverse groups Power-Elite Concentrated in relatively homogeneous elite State Autonomy Held by bureaucrats

Comparison of Three Models of American Political Power Limits of power Pluralist Limited by shifting and crosscutting loyalties Power-Elite Potentially limited when other groups can unite in opposition State Autonomy Limited if elite is unified

Comparison of Three Models of American Political Power Role of the State Pluralist Arena where interest groups compete Power-Elite One of several sources of power State Autonomy A major source of power

Characteristics of The State Jurisdiction - includes policing, armed forces, taxation, conflict resolution, relationships with other states, and resources for collective goals.  Coercion - monopolizing the use of physical force through police powers, taxation, and the maintenance of armed forces.

Participation in the 2000 Election Education % Registered % Who Voted 8 years or less 36 27 Some high school 46 34 High school graduate 60 49 Some college 70 College graduate or more 77 72

Participation in the 2000 Election Race/Ethnicity % Registered % Who Voted White 66 56 African American 64 54 Hispanic 35 28

Participation in the 2000 Election Age % Registered % Who Voted 18–20 41 28 21–24 49 35 25–34 55 44 35–44 64 45–64 71 65 769 68

% Voting Democrat or Republican in 1996 Presidential Election Race/Ethnicity Democrat Republican White 54 46 African American 99 1

% Voting Democrat or Republican in 1996 Presidential Election Education Democrat Republican Grade school 82 18 High school 60 40 College 49 51

% Voting Democrat or Republican in 1996 Presidential Election Age Democrat Republican 18–37 58 42 38–53 54–69 56 44 70-85 64 36 86 and over 57 43

Social Factors and Political Participation Social class - those who benefit most are most inclined to get involved in politics. Age - 50% of U.S. voters are over 45 y.o. Race and ethnicity - African-Americans are more inclined to political participation than in the past.

Social Factors and Political Participation Differentials in office holding - about 1% of federal legislators are African-Americans and only 8 are women. Party affiliation - Republicans have traditionally represented business while Democrats have been more supportive of the interests of workers and the disadvantaged.

Why Doesn’t the United States Have a Worker’s Party? U.S. standard of living is sufficiently luxurious to lull many people into complacency. American dream continues to influence people to think of individualistic over common goals.

 Capitalism Private ownership of the means of production - land, capital, and the labor of workers. Encourages hard work and innovation toward maximizing competitive advantage. Does not attend to distribution and does not provide for the public good.

Socialism The means of production is owned by the workers and distribution is for the public good. Creed of pure socialism: from each according to ability, to each according to need. The key drawback of socialism is the absence of personal economic incentive.

Changing Labor Force in the United States

Professions Production of an unstandardized product. High degree of personal involvement. Wide knowledge of a specialized skill. Sense of obligation to one's art. Sense of group identity. Significant service to society.

The Shifting Job Market: Projected Changes Between 2000 and 2010

The Downside of Technology Deskilling of some jobs. Displacements of the work force as some jobs vanish and new ones appear. Big brother jitters and stress as computerized jobs also provide the means of constant worker monitoring by supervisors.

Using Public Policy to Protect U.S. Jobs The conservative free market approach - proposes that the way to keep jobs in the U.S. is to reduce wages and benefits. New industrial policies - government should restrict plant closings and support investments in local economies to provide more secure jobs.

Using Public Policy to Protect U.S. Jobs Social welfare policies - helping people who are being thrown out of work through more generous unemployment benefits, paid leave for employees who are about to be laid off, and extensive job re-training programs.