1. Economics and Politics
Chapter 12
Economics and Politics

2. The Economy The economy operates in a predictable manner
Goods: Commodities ranging from necessities to luxury items
Services: Activities that benefit others
Economies of modern high-income nations are the result of centuries of social change
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3. Agricultural Revolution
The earliest societies were hunters and gatherers with no distinct economy
Economy as a distinct social institution:
Agricultural technology
Job specialization
Permanent settlements
Trade
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4. The Industrial Revolution
New sources of energies
Steam-fueled machine operation
Centralization of work in factories
Impersonal factories replaced cottage industries
Manufacturing and mass production
Raw materials into a wide range of products
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5. The Industrial Revolution
Specialization
Diverse division of labor and lower overall skill requirements
Wage labor
Working for strangers with intense supervision
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6. The Information Revolution and Postindustrial Society
Postindustrial economy
System of service work & high-technology
Information revolution altered fundamental character of work in three ways:
From tangible products to intangible ideas
From mechanical skills to literacy skills
From factories to almost anywhere
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7. The Size of Economic Sectors, by National Income Levels of Country
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8. Sectors of the Economy Primary sector Secondary sector Tertiary sector
Generates raw materials from environment
Secondary sector
Transforms raw materials into manufactured goods
Tertiary sector
Generates services rather than goods
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9. The Global Economy
Global economy–Expanding economic activity with little regard to national borders
This activity has five major consequences:
Global division of labor
Products pass through many nations
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10. The Global Economy
National governments no longer control the economic activity within their borders
A small number of businesses now control a vast share of the world’s wealth
Raises concerns about the rights and opportunities of workers
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11. Agricultural Employment in Global Perspective
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12. Service-Sector Employment in Global Perspective

13. Capitalism
“Justice” in a capitalist system amounts to marketplace freedom
Three distinct features:
Private ownership of property
Pursuit of personal profit
Competition and consumer choice
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14. Socialism
“Justice” in a socialist context is meeting everyone’s needs in roughly equal manner
Three distinct features:
Collective ownership of property
Pursuit of collective goals
Government control of the economy
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15. Alternative Systems Welfare capitalism State capitalism
Economic & political system that combines
Market-based economy & social welfare programs
State capitalism
An economic & political system; companies privately owned cooperate closely with govt
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16. Capitalism vs. Socialism
Economic productivity
GDP is $13,500
Economic equality
More income disparity
Personal freedom
Emphasizes freedom to pursue personal self-interest
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17. Capitalism vs. Socialism
Economic productivity
GDP is $5,000
Economic equality
Less income disparity
Personal freedom
Emphasizes freedom from basic want
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18. Work in the Postindustrial Economy
The Changing Workplace
In 1900, roughly 40 percent of U.S. workers were farmers
In 2010, 1.7 percent were employed in agriculture
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19. The Changing Pattern of Work in the United States, 1900–2011
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20. Work in the Postindustrial Economy
Labor unions
Organizations of workers that seek to improve wages & conditions through various strategies
Decline of unions
Shrinking industrial sector
Service jobs are unlikely to be unionized
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21. Professions Theoretical knowledge Self-regulated practice
Authority over clients
Orientation to community rather than self-interest
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22. The Careers Most Commonly Named as Probable by First-Year College Students, 2010
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23. Self-Employment, Unemployment, and Underemployment
Self-employment–Earning a living without being on the payroll of a large organization
Every society has some unemployment.
Jobs disappear as:
Occupations become obsolete
Businesses change the way they do business
Companies downsize or close
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24. Self-Employment, Unemployment, and Underemployment
Underemployment: Lower salaries, fewer benefits, and reduced/no pensions
Many workers agree to cuts in pay and/or benefits
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25. Official U.S. Unemployment Rates for Various Categories
of Adults, 2011
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26. The Underground Economy
Most of us occasionally participate in the underground economy in small ways
Much of the underground economy is due to criminal activity
Largest segment: people who fail to report legally earned income on their tax returns
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27. The “Jobless Recovery”
This time around, the recovery in jobs has not been as quick
More companies have opened factories/offices abroad
The U.S. economy is simply not growing fast enough
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28. New Information Technology and Work
Computers are de-skilling labor
Computers are making work more abstract
Computers limit workplace interaction
Computers increase employers' control of workers
Computers allow companies to relocate work
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29. Projected Increase in the Number of People in the U. S
Projected Increase in the Number of People in the U.S. Labor Force, 2011–2018
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30. Corporations Economic Concentration
Conglomerates and Corporate Linkages
Corporations: Are They Competitive?
Corporations and the Global Economy
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31. Where the Jobs Will Be: Projections to 2020
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32. Monarchy Constitutional monarchy Symbolic heads of state
Political principles rule
Elected official actually rules
Examples: Great Britain, Spain, Denmark
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33. Monarchy Absolute monarchy Rulers claiming power based on divine right
Examples: Saudi Arabia, Kuwait, Bahrain
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34. Democracy Representative democracy The US isn’t truly democratic
Authority in hands of elected leaders, accountable to the people
The US isn’t truly democratic
Extensive use of unelected bureaucratic officials
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35. Democracy Political economy
Wealthy have more political clout than the impoverished
Political economy
The interplay of politics and economics
Capitalist societies claim freedom while socialist societies claim security
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36. Political Freedom in Global Perspective
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37. Other Political Systems
Authoritarianism–A political system that denies popular participation in government
Authoritarian government is indifferent to people’s needs
Examples: Saudi Arabia, Bahrain, Ethiopia
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38. Other Political Systems
Totalitarianism
A highly centralized political system that extensively regulates people’s lives
Seeks to bend people to the will of the government
Vietnam, North Korea
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39. The Size of Government, 2012
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40. The Rise of the Welfare State
Individualism
Welfare state–Government agencies and programs provide benefits to population
One in seven US workers is a government employee
The US welfare state is still smaller than those of many other high-income nations.
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41. The Political Spectrum
Ranges from extremely liberal on the left to extremely conservative on the right
Economic issues
Social issues
Class, race, and gender
Party identification
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42. Left-Right Political Identification of College Students, 1970–2006
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43. Special-Interest Groups
Strong in nations where political parties tend to be weak
Employ lobbyists to work on their behalf
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44. Special-Interest Groups
Political action committee (PAC)
Organization formed by a special-interest group, independent of political parties, to raise
And spend money in support of political goals
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45. The Presidential Election, 2008: Popular Vote by County
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46. Voter Apathy
Americans are less likely to vote today than a century ago
Half of registered voters participated in 2000 presidential election
Participation rose to 63% in 2008
Women slightly more likely than men to vote
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47. Voter Apathy 65+ much more likely to vote than college-age
Non-Hispanic whites more likely to vote than African Americans
Hispanics least likely to vote (50% voting rate)
People with a bigger stake in US society are more likely to vote
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48. Voter Apathy Conservatives: Apathy is political indifference
Liberals: Apathy is alienation
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49. Theoretical Analysis of Power in Society
Pluralist model
Analysis of politics that sees power as spread among many competing interest groups
Power-elite model
An analysis of politics that sees power as concentrated among the rich
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50. Theoretical Analysis of Power in Society
Marxist political-economy model
An analysis that explains politics in terms of the operation of a society’s economic system
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52. Political Revolution Political revolutions have common traits:
Rising expectations
Tend to happen when quality of life is improving
Unresponsive government
Government unwilling or unable to reform
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53. Political Revolution Radical leadership by intellectuals
Thomas Hobbes: Intellectuals provide the justification for revolution.
Establishing new legitimacy
Guarding against the counterrevolution
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54. Terrorism
Violence as legitimate political tactic; bypasses channels of negotiation
Used by governments & individuals
Democratic countries especially vulnerable because of broad civil liberties
One person’s terrorist is another's freedom fighter
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55. Deaths of Americans in Eleven U.S. Wars
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56. War and Peace Wright’s five factors that promote war:
Perceived threats
Threats to people and territory
Social problems
Internal problems and frustration
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57. War and Peace Political objectives Moral objectives
Show of force and protecting one’s own property
Moral objectives
Rallying people around morality
Absence of alternatives
Limited options
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58. War and Peace Social class and the military
Is terrorism a new kind of war?
Conventional warfare is symmetrical
Terrorism is asymmetrical
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59. War and Peace Nuclear weapons The costs and causes of militarism
Nuclear proliferation–Acquisition of nuclear weapons technology by more & more nations
The costs and causes of militarism
Military-industrial complex–Association of federal govt, military, & defense industry
Regional conflict as reason for militarism
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60. War and Peace Mass media and war
The power of the mass media to provide selective information to a worldwide audience
Means television & other media are almost as important to the outcome of a conflict as the
Military that is doing the actual fighting
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61. Pursuing Peace Deterrence High-technology defense
Balance of power between societies
High-technology defense
Strategic defense initiative
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62. Pursuing Peace Diplomacy and disarmament Resolving underlying conflict
Keep talking about reducing arms
Resolving underlying conflict
Increase spending on promoting peace rather than building up military
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63. Democracy and Islam
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