Government and Economic Systems

What purpose does government serve? Maintains social order Provides public services Ensures national security Supports country’s economic well-being

What makes up a government? Make and enforce policies and laws Large governments are usually organized into levels (State, county, cities, towns, etc.) Unitary or Federal

Unitary System All powers to the national or central government Regional entities are administrative only Examples: Belgium, Bulgaria, France, Great Britain, The Netherlands, Japan, Poland, Romania, the Scandinavian countries, Spain, and many of the Latin-American and African countries

Federal System or Federalism Power is divided between the federal (national) government and state governments Each level has sovereign rights…What is sovereignty???? (independent powers) Examples: Germany, United States, Pakistan, Netherlands, India, Canada, Argentina

Types of Governments Limited Government – Everyone must obey the laws. Constitutions, statements of rights, and other laws define the limits of power Those in power can not take advantage of their elected, appointed, or inherited positions

Types of Governments – Limited Governments Democracy - several forms Majority Rule in free and fair elections Leaders rule with the consent of the citizens The people hold sovereign power Individual rights and political minorities are protected Due Process Examples: Costa Rica, Colombia, Panama, Philippines, and Greece

Types of Governments – Limited Governments Republic – “They define a republic to be a government of laws, and not of men.” John Adams Protects liberty, especially by incorporating rule of law that can not be arbitrarily ignored by the government emphasis on widespread citizen participation, civic virtue, and opposition to corruption Not every democracy is a republic…Why?? Example???

Types of Governments – Limited Governments Constitutional Monarchy – a constitutional system which acknowledges an elected or hereditary monarch (king or queen) as head of state, a king or queen reigns with limits to their power along with a governing body (i.e. Parliament) the prime minister, whose power derives directly or indirectly from elections, is head of government Examples: The Netherlands, Belgium, Norway, Denmark, Spain, Luxembourg, Monaco, Liechtenstein and Sweden

Types of Government Unlimited Government – Control is placed solely with the ruler and his/her appointees No limits on authority Rulers can not be removed by peaceful, legal means NO PROTECTED INDIVIDUAL RIGHTS

Types of Governments – Unlimited Governments Autocracy (several forms) – all power and authority to rule belong to a single person Power is achieved and maintained through inheritance or by use of military or police power No individual rights

Types of Governments – Unlimited Governments – Autocracy Totalitarianism – dictator controls all aspects of people’s lives A single leader determines all government policies a system of terror; a monopoly of the means of communication and physical force Individual rights do not exist, government is not responsible to the people and the people have no power Examples: Joseph Stalin in Soviet Union, Adolf Hitler in Germany, and Benito Mussolini in Italy

Types of Governments – Unlimited Governments – Autocracy Monarchy (absolute) – king or queen exercises the supreme powers of a government, complete and unlimited powers Position is usually inherited No individual rights Examples: Brunei, Oman, Saudi Arabia and Vatican City

Types of Governments – Unlimited Governments Oligarchy – Small group controls government decision-making Power from wealth, military power, social position, or combination Aristocracy - powerful families whose children were raised and mentored to be heirs of the power

Types of Governments – Unlimited Governments – Oligarchy Communist – seeks to establish a classless, stateless social organization based on common ownership of the means of production Government owns all property and makes all decisions Government controls the economy (Command Economy) Communist Party is the ruling party Examples: People’s Republic of China, Republic of Cuba, Socialist Republic of Vietnam, and Democratic People’s Republic of Korea

Types of Governments – Unlimited Governments – Oligarchy Socialism – property and the distribution of wealth are subject to control by the community for the purposes of increasing social and economic equality and cooperation “worker’s councils” or the state all decisions for citizens Means of production are collectively owned

What type of government is the United States? Why?

Economic Systems

Economic System determines…. What and how many goods and services should be produced? How should they be produced? Who gets the goods and services that are produced?

Traditional Economy Habit and custom determine economic activity Resources are allocated by inheritance Strongly connected to subsistence farming Found today in underdeveloped, agricultural areas

Market Economy Individuals and private groups make decisions about what to produce Free Enterprise – idea that private individuals or groups have the right to own property or businesses and make a profit w/ limited government interference The producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government Influenced by competition, supply, and demand No pure market economy exists

Command Economy The state or government controls all decisions about production, distribution, and pricing Government owns all means of production – land, labor, capital (machinery, factories), and business managers Decisions are made to benefit all of society, goods and services are distributed to all citizens equally

Economic Activities Primary – taking or using natural resources directly from the earth Examples: farming, grazing, fishing, mining, forestry

Secondary – using raw materials to produce something new and more valuable Examples: manufacturing automobiles, assembling electronic goods, producing electrical power, and making pottery

Examples: doctors, teachers, lawyers, truckers, and store clerks Tertiary – provide services to people or businesses Examples: doctors, teachers, lawyers, truckers, and store clerks

Quaternary – processing, management, and distribution of information Examples: “white collar” professionals working in education, government, business, information processing, and research