Economics and Politics Society, Seventh Edition

Agricultural Revolution The Economy -- The social institution responsible for organizing the production, distribution, and consumption of goods and services Four factors that made the economy a distinct social institution Agricultural technology Job specialization Permanent settlements Trade Society, Seventh Edition

Industrialization Introduced Five Notable Changes To Western Societies New sources of energies Steam-fueled machine operation Centralization of work in factories Impersonal factories replaced cottage industries Manufacturing and mass production Turning raw materials into a wide range of products Specialization Diverse division of labor and lower overall skill requirements Wage labor Working for strangers with intense supervision Society, Seventh Edition

The Information Revolution Postindustrial economy– a productive system based on service work and high-technology The information revolution has altered work the fundamental character of work in three ways From tangible products to intangible ideas Creating and manipulating symbols in modern society From mechanical skills to literacy skills Speaking, writing, and computer knowledge From factories to almost anywhere Laptops, cell phones, virtual office Society, Seventh Edition

Society, Seventh Edition Figure 12-1 (p. 304) The Size of Economic Sectors by Income Level of Country Society, Seventh Edition

Society, Seventh Edition Sectors Of The Economy Primary sector Generation of raw materials from the environment Low income countries = 23% of economy High income countries = 2% of economy Secondary sector Transformation of raw materials into manufactured goods Growth rapid in all industrialized nations or those entering the phase Tertiary sector Economy generates services rather than goods Low income countries = 38% of economy High income countries = 68% of economy Society, Seventh Edition

Society, Seventh Edition The Global Economy Global Economy – expanding economic activity with little regard to national borders This activity has four major consequences Global division of labor Products pass through many countries National governments n longer control the economic activity within their borders A small number of businesses now control a vast share of the world’s wealth Society, Seventh Edition

Society, Seventh Edition CAPITALISM An economic system where the natural resources and the means of producing goods and services is privately owned Three distinct features: Private ownership of property Key concept of capitalism Pursuit of personal profit Simply a “matter of doing business” Competition and consumer sovereignty The “invisible hand” is at work so leave the market alone Society, Seventh Edition

Society, Seventh Edition SOCIALISM An economic system where the natural resources and the means of producing goods and services are collectively owned Three distinct features: Collective ownership of property Limits the right to private property Pursuit of collective goals Pursuit of profits stands at odds Government control of the economy Centrally controlled economy Consumers should not drive economy Society, Seventh Edition

Society, Seventh Edition Alternative Systems Communism – a hypothetical economic ad political system in which all members of a society are socially equal Welfare Capitalism – an economic and political system that combines a mostly market-based economy with extensive social welfare programs State Capitalism – an economic and political system in which companies are privately owned but cooperate closely with the government Society, Seventh Edition

CAPITALSIM VS. SOCIALSIM Economic productivity GDP is $5,000.00 Economic equality Less income disparity Overall well-being Lower standards of living, but less disparity Personal freedom Stress is placed upon freedom from basic needs Economic productivity GDP is $13,500.00 Economic equality More income disparity Overall well-being A high quality of life, but greater disparities Personal freedoms Are the heart of a capitalistic system; Need creative forces Society, Seventh Edition

Society, Seventh Edition THE WORKFORCE THE DUAL LABOR MARKET PRIMARY LABOR MARKET EXTENSIVE BENEFITS TO WORKERS SECONDARY LABOR MARKET MINIMAL BENEFITS TO WORKERS LABOR UNIONS ORGANIZED LABOR SEEKING BETTER WAGES AND BENEFITS FOR MEMBERS DECLINE OF UNIONS LOSS OF HIGHLY UNIONIZED JOBS CONCESSIONS HAVE INCLUDED DISSOLUTION OF UNIONS MANY TEMPORARY WORKERS THESE DAYS Society, Seventh Edition

TRAITS OF PROFESSIONALS Profession – a prestigious white color occupation that requires extensive formal education Theoretical knowledge Extensive schooling Self-regulated practice Participation in associations Authority over clients Follow my suggestions Orientation to community rather than self-interest Not the pay, but the help Society, Seventh Edition

TRAITS OF PROFESSIONALS PARAPROFESSIONALS NOT ABLE TO CLAIM FULL PROFESSIONAL STATUS Includes paralegals & medical technicians SELF-EMPLOYMENT EARNING A LIVING WITHOUT WORKING FOR A LARGE CORPORATION WOMEN FIND FREEDOM AND OPPORTUNITY Society, Seventh Edition

Effects of Computers on Work “De-skilling” labor Machines make decision-makers obsolete Making work more abstract Understanding rather than “doing” Limiting workspace interaction Isolates workers Enhance employer’s control of workers Electronic monitors Society, Seventh Edition

Society, Seventh Edition Figure 12-4 (p. 314) Average Hourly Wages for Workers in Manufacturing, 1999 Society, Seventh Edition

Society, Seventh Edition CORPORATION AN ORGANIZATION WITH A LEGAL EXISTENCE, INCLUDING RIGHTS AND LIABILITIES, APART FROM THOSE OF ITS MEMBERS ECONOMIC CONCENTRATION IN 2002, WAL-MART WAS THE LARGEST $214 BILLION IN REVENUE 700,000 EMPLOYEES CONGLOMERATES - SEVERAL SMALLER CORPORATIONS STRATEGY FOR DIVERSIFYING INTERLOCKING DIRECTORATES COMPETITION IS A GREY AREA MONOPOLY: DOMINATION OF A MARKET BY ONE CORPORATION OLIGOPOLY: DOMINATION OF A MARKET BY A FEW CORPORATIONS Society, Seventh Edition

Society, Seventh Edition Politics & Government Politics The social institution that distributes power, sets a society’s agenda, and makes decisions Power The ability to achieve desired ends despite resistance from others Government A formal organization that directs the political life of a society Society, Seventh Edition

Authority Power People Perceive As Legitimate, Not Coercive Traditional Power legitimized through respect for long established cultural patterns Rational-legal Power legitimized by legally enacted rules and regulations Charismatic Power legitimized through extraordinary personal abilities that inspire devotion and obedience Routinization of charisma The transformation of charismatic authority into some combination of traditional and bureaucratic authority Society, Seventh Edition

Evolution of Political Systems Hunting and Gathering Like family: specialized roles Agrarian Societies Small elite gaining power Political States Restricted governing Modern Nation-States Modern technology brought about larger-scale political systems referred to as nation-states Society, Seventh Edition

Society, Seventh Edition THE MONARCHY RULE BY A SINGLE FAMILY OVER GENERATIONS TYPICAL OF ANCIENT AGRARIAN SOCIETIES ABSOLUTE MONARCHY Rulers monopolizing power based on divine right Modern Example: Saudi Arabia CONSTITUTIONAL MONARCHIES Modern-day monarchies More figure head than ruler Political principles rule Elected official actually rules Modern Example: Great Britain, Spain, Denmark, etc Society, Seventh Edition

Democracy Linked to Rational-legal Authority Democracy – A political system which gives power to the people as a whole Representative Democracy – Authority in hands of elected leaders, accountable to the people The U.S. Is not truly democratic extensive use of unelected bureaucratic officials rich have more political clout than poor Capitalist societies claim to be democratic because of personal liberties while socialist countries claim to be democratic because of economic equality Society, Seventh Edition

Global Map 12-3 (p. 318) Political Freedom in Global Perspective Society, Seventh Edition

Society, Seventh Edition Other Forms Authoritarianism A political system that denies popular participation in government Totalitarianism A highly centralized political system that extensively regulates people’s lives Society, Seventh Edition

Society, Seventh Edition Lobbies SPECIAL INTEREST GROUPS POLITICAL ALLIANCE OF PEOPLE INTERESTED IN SOME ECONOMIC OR SOCIAL ISSUE NRA, AARP, AFL-CIO, ACLU, Christian Coalition POLITICAL ACTION COMMITTEES ORGANIZATIONS FORMED BY SPECIAL INTEREST GROUPS, INDEPENDENT OF POLITICAL PARTIES, TO PURSUE POLITICAL AIMS BY RAISING AND SPENDING MONEY Society, Seventh Edition

Society, Seventh Edition Theoretical Analysis Pluralist model Power is dispersed among many competing interests groups The power-elite model “Real” power is concentrated among the very rich in America Can the wealthiest in America ever encounter pressure to not act in their own best interests? Marxist model Power is divided along the lines of a political economy Bias is rooted within the nation’s social institutions Revolution is the only answer Society, Seventh Edition

Society, Seventh Edition Critical Evaluation Research evidence can be cited that supports all there perspectives. In conclusion what we can say is: Nearly all are allowed to participate in the political process, but large numbers don’t Major parties and their candidates tend to be supported and support capitalist interests of the powerful few Third parties are marginalized and excluded from major debates Society, Seventh Edition

Society, Seventh Edition Political Revolution Political Revolution – The overthrow of a political order in order to establish another Coup d’etat – one leader disposing another Political Revolutions have common traits Rising expectations Tend to happen when quality of life is improving Unresponsive government Government unwilling or unable to reform Radical leadership by intellectuals Revolution is often “university centered” students play crucial role Establishing new legitimacy Guarding against the counterrevolution Society, Seventh Edition

Characteristics of Terrorism Acts of violence, or the threat of violence, employed by an individual or a group as a political strategy Define violence as a legitimate political tactic while bypassing established channels of negotiation Used by governments as well as individuals State Terrorism – use of violence generally without the support of law, by government officials Democratic countries are especially vulnerable to terrorism It is a matter of definition, one person’s terrorist is another's freedom fighter Society, Seventh Edition

Quincy Wright’s Five Factors That Promote War Perceived threats Threats to people and territory Social problems Internal problems and frustration Political objectives Show of force and protecting one’s own property Moral objectives Rallying people around morality Absence of alternatives Limited options Society, Seventh Edition

Figure 12-7 (p. 327) Deaths of Americans in Eleven U.S. Wars Society, Seventh Edition

Society, Seventh Edition Militarism The worlds nations spend $1 trillion annually $160.00 for every person on earth The politics of war Military industrial complex – the close association between the federal government, the military, and the defense industry Follow the money and the careers of pentagon officials after they leave the military as see where the two end up Nuclear weapons 25,000 warheads worldwide Nuclear proliferation – the acquisition of nuclear-weapon technology by more and more nations Society, Seventh Edition

Reducing Chances For War And Increasing Chances Of Peace DETERRENCE BALANCE OF POWER BETWEEN SOCIETIES HIGH-TECHNOLOGY DEFENSE STRATEGIC DEFENSE INITIATIVE DIPLOMACY AND DISARMAMENT KEEP TALKING ABOUT REDUCING ARMS RESOLVING UNDERLYING CONFLICT INCREASE SPENDING ON PROMOTING PEACE RATHER THAN BUILDING UP MILITARY Society, Seventh Edition