1. Chapter 1-Section 3 III. Concepts of Democracy

2. Question to Ponder What does it mean to compromise?
Why is compromise an essential part of democracy?
Give an example of a time you had to compromise.

3. A. Foundations of Democracy
We have democracy because we the citizens of the U.S. believe in the basic concepts of democracy.
Democracy was created based on these ideas

4. Concepts of Democracy Recognition of worth in every person
Respect for equality
Faith in majority rule with belief in minority rights
Seeing the necessity of compromise
Insistence of individual freedom
We will look at each of these above individually.

5. B. Fundamental Worth of the Individual
1. Individuals are cherished
2. There are times, however, when the good of the one is given away for the good of the many
Democracy must serve the many as a collection of ones, not as just one big group.

6. C. Equality 1. Equality of opportunity 2. Equality before the law
Equality of outcome is very difficult to accomplish
2. Equality before the law
This is vital

7. D. Majority Rules and Minority Rights
1. The majority gets to decide what is right/what will happen.
Not always right though.
2. The minority should be taken into consideration when governing.
3. Compromise should meld these together

8. E. Necessity of Compromise
1. Compromise is finding a position most acceptable to the largest number of people.
Majority rule with Minority rights
2. It is a way of coming to an answer when there are so many different options.

9. F. Individual Freedom 1. Basic rights that all citizens posess
What are the basic rights that all citizens posses?
2. There is freedom but it is not and cannot be absolute in democracy.
Absolute freedom= Anarchy
3. One’s freedom normally stops where it starts to infringe on another’s rights and freedoms.

10. G. Being a citizen in a Democracy
You have Rights:
You also have Responsibilities:

11. IV. Economic Systems
Each system answers: what, how, and for whom differently.

12. To answer these questions, economic systems were created.
A. Three Basic Questions for any nation:
What shall we produce?
How will we produce it?
For whom will it be produced?
To answer these questions, economic systems were created.

13. B. Traditional Systems 1. Barter System Low Productivity
Third World Countries

14. C. Command Systems: Communism, Nazism, Fascism
1. Government controls the economy
2. Government determines:
What to produce
Who will produce it
How it will be produced
For whom it will be produced

15. D. Socialist Systems 1. An expanded but limited role of government
2. Government & Private ownership of the means of production
3. Government & Markets determine price and allocate resources
In most European countries
& in Canada health care is
PROVIDED by the Government.
Governments own and run airlines
and railroads in some countries too!

16. E. Market Systems: Capitalism
1. Government is barely involved (if at all)
2. Private ownership of the means of production
3. Markets freely determine price and allocate resources

17. F. Mixed Economic Systems
1. Most national economies today
2. Capitalism dominates with varying degrees of government regulation and manipulation.
Example-U.S. is mostly a capitalistic society with elements of socialism-Medicaid and Medicare.
Example-Many European countries are mostly capitalistic but have many elements of socialism