Political & Economic Political & Economic SystemsSystems

Ch. 4 Sec. 3

Jobs of any Govn’tJobs of any Govn’t

1. Maintain social order

2. Provide national security

3. Provide social services to the people

4. Support economic stability & growth

Levels of Govn’tLevels of Govn’t• Most will have national, regional, and

local–U.S., Texas, Sugar Land

• Two diff. ways of organizing them-–Unitary system

–Federal system

Unitary SystemUnitary System

• All key powers held by national govn’t(unified)

–National govn’t then creates the lower levels and gives them limited sovereignty• Sovereignty = complete independence or

self-rule

• Ex’s: United Kingdom & France

Federal SystemFederal System• Powers are divided b/w national and

state govn’ts.–Supreme power is given to national

(federal) level

–States have powers fed. govn’t cannot touch (sovereignty in certain areas)

• Ex’s: USA, Mexico, Canada, Brazil, India

Unitary

Federal

Confederate

Strong Central

Government

Shared Powers

Strong States

Governments

Levels of Government Review

Types of Govn’tTypes of Govn’t

• How do they exercise authority?• Who runs the government?

• 3 diff. categories:–Autocracy–Oligarchy–Democracy

AutocracyAutocracy• Single person has all the power

–Oldest and most common

–Get power from inheritance, or force (military, police)

• Two types:–Totalitarian Dictatorship

–Monarchy

AutocracyAutocracy• Totalitarian

Dictatorship– Controls all aspects

of society & economy

– People have no say, no power to limit ruler’s axns

Ex’s: Hitler, Stalin, Mussolini, Kim

Jong Il

AutocracyAutocracy• Monarchy

– Absolute monarch (king/queen) has all power

– Typically inherited

• Ex’s: Saudi Arabia

– Constitutional monarch shares power with legislative branch• Ex’s: UK, Japan

OligarchyOligarchy

• Small group of people who hold power–Gets power by wealth, military, social

position, religion

–Mostly in communist countries• Leaders of communist party

–Most opposition is suppressed

DemocracyDemocracy• Leaders rule with consent of the

people (popular sovereignty)• Comes from Greek words ‘demos’ =

people, and ‘kratia’= rule

• Two types:–Direct

–Representative

DemocracyDemocracy• Direct- citizens vote and decide on all

issues directly–No country has direct–Can only occur in small groups

• Representative- citizens elect reps to make decisions based on their needs–Republics have ALL officials elected–Ex’s: USA, France, UK

• UK is a democracy with a constitutional monarch

Autocracy

Oligarchy

Democracy

Rule by one

Rule by group

Rule by all

Types of Government Review

Economic SystemsEconomic Systems

• There are 3 basic questions to ask:1. What and how many goods & services

are produced?

2. How should the above be produced?

3. Who gets the goods & services that are produced?

Each country answers differently…

Frank and EarnestFrank and Earneston Economicson Economics

Frank and EarnestFrank and Earneston Free Marketon Free Market

Traditional EconomyTraditional Economy• Rules & customs determined by

habit, what the ancestors did

• Roles passed down thru generations–Dad is farmer, son is a farmer

–Not a lot of individual choice

• People grow what they need to live

• Only in limited places

• Ex: Inuit society in Canada

Market EconomyMarket Economy• Decisions made by individuals and

private groups–Supply & demand ppl choose what to

buy so businesses make what ppl want

–People choose what jobs they want & who they’ll work for

–Free enterprise/ capitalism• Limited govn’t interference

–NO one has a PURE market economy

Market EconomyMarket Economy

• Mixed Economy- free enterprise supported and regulated by govn’t–Govn’t keeps competition fair, trade

free, supports public’s best interest

–Ex: USA, Japan, Singapore

Command EconomyCommand Economy

• Govn’t owns and directs the economy–Decisions about production &

distribution of goods & services• Controls ‘means of production’ (land, labor,

capital)

–Goal is to distribute G&S equally

–Taxes support social services to all citizens

Command EconomyCommand Economy• Socialism (France, Canada)

–Equally distribute wealth is goal–Public ownership of means of

production• Typically found in democratic nations• Ppl elect reps who make economic

decisions on their behalf• Can be under range of free enterprise

–If you make a surplus, you can keep the extra instead of “sharing” it

Command EconomyCommand Economy• Communism

– Equally distribute wealth, goods, get rid of social classes (Marxism)

– Govn’t makes all economic decisions• Typically by force/coercion, no voice of ppl

Communist Party

– Most decline w/o free decision making/ incentives (USSR)

– Ex’s: China & Vietnam now allow some free enterprise to promote growth; North Korea does not

Government

controls Basic

industries

Capitalism(Dema

nd)

Communism

(Command)

Socialism

Controlled by

market place

Controlled by

government