– 3. Relationship between legislative and exec. Branches. a. Presidential: 2 branches are both chosen by voters – considered separate and equal. b. Parliamentary: legislators chosen by voters – Executive (Prime Minister) chosen by legislature who can replace him at will.

B. Characteristics of Democracy – 1. Individual Liberty: individual worth and dignity. Equality of opportunity – 2. Majority rule with Minority Rights Need for compromise – 3. Free and open elections: secret voting, not coerced Every vote counts the same, universal suffrage/part. – 4. Competing political parties: give voters choice Political party: group of individuals w/ common interests who organize to win elections. – 5. Gov’t must be responsive to wishes of people expressed by their vote.

C. The Soil of Democracy: Democracy requires: – 1. A favorable economy w/ large middle class and freedom to make economic decisions. – 2. Widespread education and high degree of literacy. – 3. A Social Consensus: People share same values and ideals.

Sec.4: Gov’t and Economic Systems A. Economics: study of human efforts to satisfy unlimited wants through the use of limited resources – Econ. Systems & political systems go hand in hand (polling place v. market place).

– 1. All econ. Systems must answer 3 ?’s. a. What & how much is to be produced w/ limited factors of production? – Land & natural resources – Labor – Human resources – Capital – money, factories, machines – Management – decision makers b. How are goods to be produced? c. Who gets the goods produced?

B. Major Economic Systems – 1. Capitalism: Market System, Free Enterprise – means of production and answers to basic questions left to the people. a. Characteristics of capitalism – 1. Private ownership of property and resources – 2. Free enterprise – individual choice – 3. Competition – 4. Profit motive b. Origins of capitalism – 1. Adam Smith’s – The Wealth of Nations, 1776 – 2. Laissez – faire economics – gov’t should not involve itself in economic decisions: Decisions determined by supply and demand.

c. Free enterprise in U.S. 1. Mixed Economy: government gets involved by: – a. protecting private property – b. providing services – c. acts as consumer and employer – d. ensures competition – e. regulates businesses to protect society: sets health & safety standards. – f. regulates foreign competition – g. provides welfare services to the unsuccessful.

– 2. Socialism a. Gov’t owns the basic means of production determines the use of resources, distributes the products – wages and provides social services b. 3 main goals – 1. distribution of wealth and economic opportunity equally among people – 2. gov’t makes all decisions and production – 3. public ownership of most land, of factories and other means of production c. It developed as means to narrow rich/poor gap. d. Dem. Socialism: ppl have basic rights and have some control of gov’t officials through elections but cent. Planning by gov’t nationalization of resources is essential. -believe in peaceful change.

– 3. Communism: Command Economy – a. Gov’t makes all econ decisions, own all means of production – b. origins, Karl Marx, Comm. Manifesto (1848) 1. History of class struggle (world has 2 classes) – Bourgeoisie (owners) v. Proletariot (workers) – Owners grow rich from workers (poor wages) Workers will unite and overthrow. 2. Gov’t/state was the tool of the owners: can only be altered through bloody revolution. 3. At first there is a temp. dictatorship, but would wither away to create a classless society (complete equality)

c. Russia (Lenin) first to put into action, Bolshevik Revolution (1917) against Czar Nicholas II. d. Fallacies of Communism in Practice –1–1. In modern communism, gov’ts don’t wither away, Comm. Party becomes like old Bourgeoisie. –2–2. In capitalism, owners – workers have not had to resort to conflict to settle differences. –3–3. In communism, there is no individual incentive or initiative (no profit motive) nor competition to make best product.