1. Chapter 14 Political and Economic Institutions

2. Chapter Outline Using the Sociological Imagination Power and Authority The Nation-State Political Systems

3. Chapter Outline Political Power in American Society Economic Systems The Corporation Work in the Contemporary Economy

4. Power and Authority Power is the ability to impose one’s will on others whether or not they wish to comply. Authority is power accepted as legitimate by those subjected to it.

5. Three Forms of Authority Charismatic - inherently unstable Traditional authority - too outdated to serve as the basis of power for modern nation-states. Rational-legal - the authority of most nation-states today.

6. Nation-state: Characteristics Absolute sovereignty it has over its citizens. Citizens can appeal no higher than the laws of the state. Devotion to nationalism.

7. Political Systems Democracy - representative with minimal citizen involvement in political affairs. Totalitarianism - absolute rulers control all aspects of social life Authoritarianism - nonelected rulers with absolute control who frequently permit some individual freedom.

8. Assumptions in a Representative Democracy Not everyone in modern society can be actively involved in all political decision making. Politicians who fail to satisfy the wishes of the majority will not be elected (or reelected).

9. Confidence in Executive and Legislative Branches

10. Growth in the Number of PACs: 1974–2000

11. Characteristics of Two Models of Political Power PluralistPower Elite Who exercises Power? Bargaining and compromising interest groups National political, economic, and military leaders What is source of power? Resources of interest groups Leaders in major institutions

12. Characteristics of Two Models of Political Power PluralistPower Elite Where is power located? Spread among interest groups Concentrated in hands of elites Do nonelites have much influence? Considerable influence on public policy Very little influence on public policy

13. Characteristics of Two Models of Political Power PluralistPower Elite What is the basis for public policy decisions? Goals and values are shared by the general public Preferences of the elites

14. Changes in U.S. Labor Force by Occupational Category

15. Capitalist Economies Based on: Private property The pursuit of profit without government interference.

16. Socialist Economies The means of production are owned by the people. Government has active role in planning and controlling the economy.

17. Individualistic capitalism Foundational principles: Self-interest Free market Profit maximization Highest return possible on stockholder investment

18. Occupational Structure: Two Tiers 1. Core tier Computer technology, pharmaceutical, and aerospace firms. Between 30 and 40% of U.S. workers are in the core tier.

19. Occupational Structure: Two Tiers 2. Peripheral tier Industries such as agriculture, textiles, and small-scale retail trade. 60 to 70% are employed in the peripheral tier.

20. Downsizing Since 1985, over 8 million employees were downsized. In 2001, corporate layoffs increased nearly 40% over the previous year. Causes: Collapse of the stock market Economic downturn Exposure of CEO scandals 9/11 terrorist attack