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Governments and Economies of the World. Political Systems. Dictatorship Control of the government : One person / a small group Voting : None Very few freedoms and choices No free speech, free media, freedom of religion, etc. Examples : Iran, Vietnam, China, Cuba, Saudi Arabia - PowerPoint PPT Presentation
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Governments and Economies of the World
Political Systems Dictatorship
Control of the government: One person / a small group
Voting: None Very few freedoms and choices
No free speech, free media, freedom of religion, etc. Examples: Iran, Vietnam, China, Cuba, Saudi Arabia
Totalitarianism Extreme form of dictatorship Government has total control of your life Examples: (Fascism & Nazism; Hitler, Stalin, North Korea)
Democracy Control: Citizens control the government through
voting and serving in the government Voting: Free elections, open participation
Referred to as a “Western-style government”
Two types: Direct Democracy: The people make all of the actual
decisions Examples: Ancient Greece (Athens), no modern national
examples Indirect Democracy: The people elect others to make the
decisions Examples: US, Western Europe…most countries in world
Monarchy Control: Monarch (king or queen) maintains power
Power kept within the family
Two types: Constitutional Monarchy: Monarch has limited power;
shares power with an elected body: Parliament Democratic government Examples: UK, Spain, Netherlands, Nepal, Japan
Absolute Monarchy: Monarch holds all the power; no citizen control “Dictatorship” Example: Saudi Arabia, Brunei, Oman
Socialism Government’s goal is to make everyone in society
equal (usually forced) Trying to get rid of uneven classes
Gov’t makes decisions for society to keep everyone equal (Big Brother) Provides most services for people so everyone has them
(health care, education, retirement, etc.)
Different ‘levels’ of socialism Entire government is socialized
China, Cuba, USSR Some systems in non-socialist gov’ts can be ‘socialized’
US – Social Security, education Canada, France, Sweden – Health care
Usually CommunistUsually a dictatorship
Economic Systems Capitalism
Prices are set by the market Supply and Demand determines market decisions
Wages, prices, what to sell, popular vs. unpopular goods/services, etc.
Also known as: Market Economy, Free-Market, Free Enterprise
Works with: Democracy
Communism Created to be an ‘solution’ to capitalism:
Problem: Capitalism creates unfairness, inequality in society Owners don’t ‘do’ anything and make lots of money Workers do all the work and make a lot less
Solution: Government owns all business, means of production; workers get the ‘extra’ money Goal: Make everyone economically equal Government makes all market decisions
What is made/sold, prices, wages, jobs, etc. so everyone is ‘equal’
Eliminates classes No private business allowed
Prices are kept artificially low so everyone in society can afford goods Leads to shortages, corruption, etc.
Est. by Karl Marx’s Communist Manifesto (1848)
Also known as: Command Economy
Followers: Communists, Marxists
Only works with: Fully socialized countries
Countries: USSR, China, Vietnam, Laos, N. Korea, Cuba
Communism must have Socialism to workSocialism does not need to have Communism
Economic Terms Currency
Arabic Countries Dinar
Australia Dollar
China Renminbi
Europe Euro
India Rupee
Japan Yen
Mexico Peso
UK Pound
US Dollar
$
¥
€Rp
¥
$ or Mex$
₤
$
Recession A minor/short-term slow-down of the economy Caused by inflation, drop in stock market, high
unemployment, outside shock (war, spike in price of oil, etc.)
Depression A severe or long-term slow-down of the economy Can take years to recover
Inflation When the price of goods increase
Measured by comparing what a set number of products cost over time.
Causes Drop in supply of major goods Too much currency in the system
Effects People cannot afford what they used to Unemployment increases Economic recession or depression Value of currency plummets
Savings and currency lose value
US = 1.24%
GNP (Gross National Product) Total value of goods produced by a nation both inside
and outside the country (by companies who are based there) US gets all credit for all US-based companies, despite where
the stuff is actually made Used to indicate the overall wealth of a nation
GDP (Gross Domestic Product) Total value produced inside a country (by any company
producing items in that country) US gets credit for all stuff made in US, despite where it’s based
Used to indicate the productivity of a nation GDP per capita : Total GDP ÷ population
Used to compare countries fairly; ‘evens’ out population
Measuring & Comparing Economies
Example: Bottling plants in US, Mexico, France and India
US GNP counts… US GDP counts… France’s GDP counts…
Other ways to economically compare nations: Industrialization Infrastructure Literacy rate Telecommunications Workforce usage Poverty line/unemployment rate
You can tell how well off a country is by what these categories look like for the country
All of the Coca-Cola produced worldwide
All of the Coca-Cola produced in US
All of the Coke produced in France
World $52,621,403,000,000
1 United States $14,660,000,000,0002 China $10,090,000,000,0003 Japan $4,310,000,000,0004 India $4,060,000,000,0005 Germany$2,940,000,000,0006 Russia $2,223,000,000,0007 United Kingdom $2,173,000,000,0008 Brazil $2,172,000,000,0009 France $2,145,000,000,00010 Italy$1,774,000,000,000
GDP (World’s Top 10; 2010)
1 Qatar $142,848
2 Luxembourg
$92,297
3 UAE $70,520
4 Brunei $63,455
5 Singapore
$59,871
6 Norway $58,715
7 Kuwait $51,947
8 Australia $49,460
9 United States
$46,569
10 Switzerland
$5,397
11 Netherlands
$42,594
12 Canada $42,591
13 Austria $42,489
14 Sweden $41,138
15 Iceland $40,381
GDP Per Capita (Top 15; 2010)
From University of Pennsylvania
176 Ethiopia $ 845
177 Madagascar $ 816
178 Eritrea $ 799
179 Central African Republic $ 706
180 Niger $ 591
181 Somalia $ 547
182 Liberia $ 491
183 Burundi $ 471
184 Zimbabwe $ 412
185 Democratic Republic of Congo $ 296
GDP Per Capita (Bottom 10)
From University of Pennsylvania
Communism
Capitalism
Socialism Democracy
Things common to both Communism and
Capitalism
Things common to both Socialism and Democracy
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Prices set by market
Supply and Demand
Works with Democracy
Free Enterprise
Get rid of classes
Needs Socialist gov’t
Never works practically
‘Solution’ to Capitalism
Gov’t runs the market
Citizens vote for gov’t
“Western style gov’t”
Free elections
Direct vs. Indirect
Goal = equality
Private business banned
Corruption
Paid for through taxes
Economic systems
Political Systems
Don’t need Communism
Goal = freedom
Works together
People run everything
Private business allowed
Often a dictatorship
Provides services to people
Gov’t makes decisions
Works with Communism
CapitalismCommunism
Socialism Democracy
Things common to both Communism and
Capitalism
Things common to both Socialism and Democracy
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Private businessSupply and DemandMarket/businesses makes decisionsFreedom of choicesCreates classesWorks w/ demc’y
Gov’t runs economyPeople forced to stayDoesn’t work on lg scaleKarl MarxLimited freedomsWorks w/ Socialism
Voting for gov’tPeople run the gov’tDirect vs. Indirect
Goal is equality
Economic systems
Political systems
Don’t need Communism
Work togetherFree choicesClasses allowedPeople run it all
Don’t need CommunismProvides services to peopleGov’t pays for stuffHigher taxes to pay for stuff
CapitalismCommunism
Socialism Democracy
Things common to both Communism and Capitalism
Things common to both Socialism and Democracy
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Free MarketPrivate ownershipPeople decide everythingSupply and DemandFree choice - economically
Karl Marx‘Solution’ to CapitalismNo private businessGov’t controls economyNeeds Socialism to workUsually needs dictator
People decide – votingCitizen control gov’tFree electionsDirect vs. IndirectPower is spread out“Western Style Gov’t”
Goal is to make everyone equal
Economic systemsNeed taxes
Political systems
People power
Gov’t owns everything (no private)Gov’t decides everythingSystems are nationalizedNo private ownership of prop.Taxes pay for everything
CapitalismCommunism
Socialism Democracy
Things common to both Communism and Capitalism
Things common to both Socialism and Democracy
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Market decides thingsSupply and DemandWorks with DemocracyPrivate businesses!!!!!“Free Market”
Gov’t owns businessGov’t controls economyImpractical in large scaleNo private businessGov’t decides everything‘Solution’ to capitalismForced to stay in country
Free voting/electionsCitizens control gov’tMore rightsPeople have a sayDirect vs. Indirect“Western Style Gov’t”Most used type of gov’t
Goal is equality
Economic Systems
Taxes finance thingsPolitical systems
Free choicesPeople decide stuffLess gov’t controlFree to leave
Not as forcefulGov’t owns propertyGov’t provides everythingGov’t decides everything politically100% = dicatorshipTaxes pay for everything