Economy & Government

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Learning Objectives

• I can name and describe the different types of economic systems

• I can compare and contrast different economic systems around the world.

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• To more effectively live, humans have set up economic systems and governments.

• Economic Systems Theories of:

a. production (making)

b. distribution (shipping, buying & selling)

c. consumption (using)

Production, distribution or consumption?

a. used by earlier civilizations and less developed countries

b. subsistence living

c. depend on customs, traditions, & inheritance to guide economic activities

d. found among indigenous populations that largely depend on agriculture for their living

information about both economies taken from http://www.wisegeek.com/what-is-the-difference-between-a-traditional-and-market-economy.htm

1. Traditional Economy

2. Capitalism (a.k.a.Free Market system) (vo a. private ownership of property and/or businesses

b. no gov’t regulation (rules)

c. supply & demand

c. encourages competition

d. class system.

Adam Smith

This company

• Class System is a part of capitalism

• - Upper (elites)

- Middle (bourgeoisie)

- Lower/workers

middle upper/elites

3. Socialism – A theory advocating some gov’t control (regulation) of economic activity. It also relies on the redistribution of wealth.

4. Communism– “higher stage” of socialisma. Total gov’t ownership of property and businesses

b. Pro-worker (proletariat)

c. Classless system (everyone is equal)

d. Command Economy

- What is the color of communism?

- The color of communism - red

Origin of Communism - Karl Marx (German philosopher)

Published in 1848

• What type of economic system does the U.S. have?

• The U.S.A., technically, has a Mixed Economy capitalist (free market) economy with some government regulation (socialism).

• Where is the U.S. on the capitalist/communist continuum? What about Canada? 1 to 10

CommunismCapitalism

Socialism

1 2 3 4 5 6 7 8 9 10

• Despite the technicalities, most people call our economic system . . . CAPITALISM!!!

• Does capitalism work?

Donald Trump – 2.9 billion

#2 (richest in the world) Bill Gates – 61 billion

#3 Warren Buffet – 44 billion

For some . . . capitalism is great!

Paris Hilton

Oprah Winfrey is worth 2.7 billion

Who is the richest person in the world?

Carlos Slim (Mexico) - #1 richest person in the world @ 70 billion

Capitalism fosters greed

For others . . . not so much (hurts those who do not have $)

Republicansrepublicans

Capitalism vs. Communism and/or Socialism . . . you be the judge.

Again, what type of system does the U.S. have?

Occupy Wall Street movement (2011) which protested against greed, corruption, economic inequality, etc.

• Capitalists use propaganda to demonize communism and socialism.

“Communism” and “Socialism” are considered dirty words to many people in the United States.

juxtaposition

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Learning Objectives

• I can name and describe the different types of government systems

• I can compare and contrast different government systems

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• Political Systems – a system of government; a form of rule over people.

- What are some different forms of government?

1. Democracy– Government by the people.

Two types:a. Direct Democracy-

– Everyone participates and has a say in gov’t. Ex. Ancient Greece

b. Republic– Gov’t system in which the people elect leaders to

represent them. a.k.a. representative democracy. Example: USA

• Difference between (direct) democracy and republic. Students will draw

(Direct)

2. Autocracy – government in which one person has unlimited power over others.

- Two types: a. Totalitarian dictatorship

Pol Pot - Cambodia

Augusto Pinochet - Chile

Bashar al-Assad - Syria Saddam Hussein - Iraq

All are infamous and, generally, narcissistic.

Muammar Gaddafi - Libya

Idi Amin - Uganda

Rafael Trujillo – Dominican Republic

The state/country is in control of everything

Students-pleasedraw this

Also comes with a ridiculous fashion sense.

• Regime– authoritarian/dictatorship and/or corrupt government

b. Monarchy– Government rule by king or queen. Two types:

1. 1. Absolute Monarchy – all powerful

Ex. Saudi Arabia

King Abdullah

2. Constitutional or Limited Monarchy –little or no power

“I just came out to say, POWER TO THE PEOPLE.”

Constitutional Monarchy Ex. Canada, Jamaica, Belize & other Caribbean Islands.

Blue-currentRed-Formerxt

British Commonwealth of Nations. Who is there monarch?

• Is Queen Elizabeth II, of the United Kingdom, an absolute monarch?

• NO!!! She is a constitutional or limited monarch.

3. Oligarchy – Government rule by a group of people.

Example: Communist State (country) – single-party (communist) rule which professes allegiance to Marxist-Leninist communist ideology; led by a dictator; indoctrination.

North Korea

Karl Marx Vladimir Lenin

Communism is thought of as both an economic system and a gov’t system.

- Current Communist States (countries) – Cuba, China, Laos, Vietnam & North Korea

Western Hemisphere

Eastern Hemisphere

• The United States will do everything in their power to stop the spread of

communism . . . especially in the Western Hemisphere.

Ex. Nicaragua 1980s

This was the fear of the

U.S.--especially after Cuba

was on their doorstep

• The U.S. anti-communist policy known as The Domino Theory

4. Theocracy– gov’t rule by a religion. Ex.– Iran (Islam)

Ayatollah (Supreme Leader) in Iran

President

Based on Sharia Law

Iranian fashion police

Showing hair is a form protest.

Women’s rights protest in Tehran, Iran. The theocratic gov’t took it very seriously.

“Women should have the same rights as men.” Farsi/Persian

5. Fascism– led by a dictator; emphasizes ancestry, culture and blood; emphasis of nation (nationalism) over the individual; indoctrination; forcibly suppresses any opposition.

Examples: Germany, Italy & Spain in the 1930’s & ’40s

Francisco Franco (Spain)Hitler and Mussolini (Italy)

As mentioned before, dictators are, generally, infamous and very narcissistic.

6. Plutocracy – the rule or control of a society by the wealthy.

7. Anarchy– no government

Nester Makhno (1918) – leader of the Anarchist Free Territory in Ukraine during the Russian Civil War.

Pierre-Joseph Proudhon (French) – father of modern Anarchism

Mikhail Bakunin (Russian)

What would life be like without gov’t?Think about it.

You would have to deal with people like this.

• What is the role of government?

- To serve and protect (we hope)

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Learning Objective

• I can explain how different countries are connected economically through trade, transportation, etc.

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• We are all globally linked/connected together . . . how?

1. Transportation

a. Waterwaysb. Roadsc. Aird. rail

2. Economics

• - Currency (paper money)1. Example: euro

- Distribution . . . Trade

• What percent (%) of trade travels by water?

- 90%

- Top five trading partners (countries/states) with the U.S.?

Long Beach, CA port

1. Canada 2. China 3. Mexico 4. Japan 5. Germany

- Examples of major trade networks.

Major trade networks - Oil

• Tariff – a tax on imports & exports . . . why tariffs?

• Tariffs protect locally made products.

3. Communicationa. Language

1. Internet2. Telephones3. Mail4. T.V./Radio

Hemisphere & “World”?????

KIP

4. Migration– movement from one place to another.

World migration since 1700

Hemispheres?