Chapter 11, Economics and Politics The Economy Major Economic Systems World System Theory The U.S. Economy as Number One Political System and Power Forms of Government The Political System of a Superpower

World Economic System Three major ongoing revolutions have shaped the world’s economic system: Agricultural Revolution Industrial Revolution Information Revolution

Agricultural Revolution Two fundamental changes created food surpluses and and allowed society to support nonfood occupations: 1. 10,000 years ago - humans domesticated plants and animals. 2. 5,000 b.c. - invention of the scratch plow allowed farmers to use oxen to plow the soil.

Industrial Revolution Mechanization added external power to hand tools and modes of transportation. Changed the nature of work and transformed individual workshops into factories. Combined with colonization, allowed colonists to force local populations to cultivate and harvest crops and extract minerals and other raw materials for export.

Information Revolution Economy centered on the creation of information and delivery of services rather then the production of goods. Majority of workers are not employed in manual labor. Defined by the manipulation of numbers, words, images and other symbols rather than by the production of goods.

Major Economic Systems Two extremes: Capitalism and Socialism No economy fully realizes the principles of either.

World System Theory Economic transactions transcend national boundaries. No single political structure or national government has authority over the system of production and distribution.

Six Ways Capitalists Create Economic Growth Hiring employees who will work for the lowest wages. Securing raw materials at the lowest possible price. Creating a new product that consumers “need”.

Six Ways Capitalists Create Economic Growth Improving an existing product and making previous versions obsolete. Expanding the outer boundaries of the world economy by creating new markets. “Redistributing” wealth to enable more people to purchase products and services by offering higher wages or issuing credit.

10 Fastest Growing Occupations ( ) 1. Cashiers 2. Systems analysts 3. General managers and top executives 4. Registered nurses 5. Retail salespersons

10 Fastest Growing Occupations ( ) 6. Truck drivers 7. Home health aides 8. Teacher’s aides and educational assistants 9. Nurse’s aides and orderlies 10. Receptionists and information clerks

Reasons for the Decline in Union Membership Declining significance of the manufacturing sector in the overall economy. Increasing percentages of females in the workforce. Increasing global competition, which adds pressure to keep wages down and keeps union influence at a minimum.

Forms of Government Democracy Totalitarianism Authoritarianism

Participation in the Political Process 62.1% of Americans eligible to vote were registered voters in Only 51.2% of the voting-age population voted in the 2000 presidential election. People between 18 and 24 were the least likely age group to vote.