1. Politics and the Economy
Chapter 14
Politics and the Economy

2. Chapter Outline Political and Economic Institutions
Power and Political Institutions
Power and the State
Individual Participation in U.S. Government
Modern Economic Systems
The U.S. Economic System
Work in the United States

3. Two Kinds of Power
Coercion is power based on fear by using force and intimidation.
Authority is power based on socially accepted norms that maintain the right of some authority to wield power.

4. Three Types of Authority
Traditional authority is rooted in established roles, like father, elder, or king.
Charismatic authority arises from the exceptional personality that may sway and inspire others.
Rational-legal authority is based on formal regulations and laws.

5. Power Concept Example “mowing the lawn” Power
“I know you don’t want to mow the lawn, but do it anyway.”
Coercion
“Do it or else.”
Authority
“It is your duty to mow the lawn.”

6. Power Concept Example “mowing the lawn” Traditional Authority
“I’m your father, and I told you to mow the lawn.”
Charismatic
authority
“I know you’ve been wondering how you might serve me, . . .
Rational-legal
“It is your turn to mow the lawn; I did it last week.”

7. Perceptions of Government Responsibilities: % Who Agree with the Statement:

8. Comparison of Three Models of American Political Power
Basic units of analysis
Pluralist
Interest Groups
Power-Elite
Power elites
State Autonomy
Government bureaucracy

9. Comparison of Three Models of American Political Power
Source of power
Pluralist
Situational; depends on issue
Power-Elite
Inherited and positional; top positions in key economic and social institutions
State Autonomy
Control of personnel and budget of government

10. Comparison of Three Models of American Political Power
Distribution of power
Pluralist
Dispersed among competing diverse groups
Power-Elite
Concentrated in relatively homogeneous elite
State Autonomy
Held by bureaucrats

11. Comparison of Three Models of American Political Power
Limits of power
Pluralist
Limited by shifting and crosscutting loyalties
Power-Elite
Potentially limited when other groups can unite in opposition
State Autonomy
Limited if elite is unified

12. Comparison of Three Models of American Political Power
Role of the State
Pluralist
Arena where interest groups compete
Power-Elite
One of several sources of power
State Autonomy
A major source of power

13. Characteristics of The State
Jurisdiction - includes policing, armed forces, taxation, conflict resolution, relationships with other states, and resources for collective goals.
 Coercion - monopolizing the use of physical force through police powers, taxation, and the maintenance of armed forces.

14. Participation in the 2000 Election
Education
% Registered
% Who Voted
8 years or less 36 27
Some high school 46 34
High school graduate 60 49
Some college 70
College graduate or more 77 72

15. Participation in the 2000 Election
Race/Ethnicity
% Registered
% Who Voted
White 66 56
African American 64 54
Hispanic 35 28

16. Participation in the 2000 Election
Age
% Registered
% Who Voted
18–20 41 28
21–24 49 35
25–34 55 44
35–44 64
45–64 71 65
769 68

17. % Voting Democrat or Republican in 1996 Presidential Election
Race/Ethnicity
Democrat
Republican
White 54 46
African American 99 1

18. % Voting Democrat or Republican in 1996 Presidential Election
Education
Democrat
Republican
Grade school 82 18
High school 60 40
College 49 51

19. % Voting Democrat or Republican in 1996 Presidential Election
Age
Democrat
Republican
18–37 58 42
38–53
54–69 56 44
70-85 64 36
86 and over 57 43

20. Social Factors and Political Participation
Social class - those who benefit most are most inclined to get involved in politics.
Age - 50% of U.S. voters are over 45 y.o.
Race and ethnicity - African-Americans are more inclined to political participation than in the past.

21. Social Factors and Political Participation
Differentials in office holding - about 1% of federal legislators are African-Americans and only 8 are women.
Party affiliation - Republicans have traditionally represented business while Democrats have been more supportive of the interests of workers and the disadvantaged.

22. Why Doesn’t the United States Have a Worker’s Party?
U.S. standard of living is sufficiently luxurious to lull many people into complacency.
American dream continues to influence people to think of individualistic over common goals.

23.  Capitalism
Private ownership of the means of production - land, capital, and the labor of workers.
Encourages hard work and innovation toward maximizing competitive advantage.
Does not attend to distribution and does not provide for the public good.

24. Socialism
The means of production is owned by the workers and distribution is for the public good.
Creed of pure socialism: from each according to ability, to each according to need.
The key drawback of socialism is the absence of personal economic incentive.

25. Changing Labor Force in the United States

26. Professions Production of an unstandardized product.
High degree of personal involvement.
Wide knowledge of a specialized skill.
Sense of obligation to one's art.
Sense of group identity.
Significant service to society.

27. The Shifting Job Market: Projected Changes Between 2000 and 2010

28. The Downside of Technology
Deskilling of some jobs.
Displacements of the work force as some jobs vanish and new ones appear.
Big brother jitters and stress as computerized jobs also provide the means of constant worker monitoring by supervisors.

29. Using Public Policy to Protect U.S. Jobs
The conservative free market approach - proposes that the way to keep jobs in the U.S. is to reduce wages and benefits.
New industrial policies - government should restrict plant closings and support investments in local economies to provide more secure jobs.

30. Using Public Policy to Protect U.S. Jobs
Social welfare policies - helping people who are being thrown out of work through more generous unemployment benefits, paid leave for employees who are about to be laid off, and extensive job re-training programs.