Section 3 Government & Economics

CHAPTER 4THE HUMAN WORLD

Institution through which a society – Maintains social order Provides social services Ensures national security Supports its economic well-being

I. GOVERNMENT

Unitary System Gives all key powers to the national or central government

Federal System Divides the power of government bw the national and state govt

LEVELS OF GOVERNMENT

3 categories – ask the question….. “Who governs the state?”1. Autocracy – rule by one person2. Oligarchy – rule by a few people3. Democracy – rule by many people

TYPES OF GOVERNMENT

Oldest and most common form of govtMost autocrats receive power through inheritance or ruthless

use of military or police controlSuppress political opposition

AUTOCRACYRULE BY ONE PERSON

Ex: Absolute or Totalitarian dictatorships One person seeks to control all aspects of social and economic life Govt is not responsible for the people People have no power to limit rulers’ actions Adolf Hitler (Nazi Germany) Benito Mussolini (Italy) Joseph Stalin (Soviet Union)

AUTOCRACYRULE BY ONE PERSON

Ex: Monarchy King or Queen exercises the supreme power of the govt Usually inherit their positions Absolute Monarchs: have complete and unlimited power to rule

the people Constitutional Monarchs: share governmental powers with elected

legislatures or serve as ceremonial leaders

AUTOCRACYRULE BY ONE PERSON

Small group holds powerGroup derives its power from

Wealth Military power Social position Religion And/or combination of these elements

Suppress political opposition

OLIGARCHYRULE BY A FEW PEOPLE

Many times both dictatorships and oligarchies claim they rule for the people

But only give the illusion and no actual commitment is made to support the people

Ex: Communist China

OLIGARCHYRULE BY A FEW PEOPLE

System of government where leaders rule with the consent of the citizens

Latin (Demos=“the people”) + (kratia=“Rule”)Govt by the many not the FEW

DEMOCRACYRULE BY MANY PEOPLE

Ex: Representative Democracies People elect representatives with the responsibility and power to

make laws and conduct govt Called either:

Council Legislature Congress Parliament

DEMOCRACYRULE BY MANY PEOPLE

Ex: Republics (US & France) Voters elect all major officials, who are responsible to the people Head-of-State – President

Not every democracy is a republic ie: United Kingdom – democracy with a monarch

DEMOCRACYRULE BY MANY PEOPLE

The financials of a countryAll Economic Systems must make three basic economic

decisions…..1.What & how many goods and services should be produced?2.How they should be produced?3.Who gets the goods and services that are produced?

II. ECONOMIC SYSTEMS

There are 3 major types of ES1.Traditional ES2.Command ES3.Market ES

1. Mixed Economy

ECONOMIC SYSTEMS

Habit and custom determine the rules for all economic activity

You behaved based on customs and traditionsHunter and gatherer Today: practiced in very limited parts of the world

TRADITIONAL ES

The govt owns or directs the means of production and controls the distribution of goods

Means of Production – Land Labor Capital (machinery, factories) Business managers

COMMAND ES

The idea is the decisions made will in the end benefit all of society and not just a limited few

The intent is to distribute goods equallyHowever, citizens have no voice in how tax money is spent

COMMAND ES

Ex: Command ES is either called Socialism or Communism dependent on how involved govt is

Communism – the govt has complete and total control over the economic system The fear……..that wo free decision making businesses will not

work for the people ie: Soviet Union

COMMAND ES

Socialism – allows free enterprise alongside govt run activities

Three main goals:1.Equal distribution of wealth2.Society’s control, through its govt, of all major decisions

about production3.Public ownership of most land, factories and other means of

productionDemocratic socialism – people have basic human rights even

though the govt controls certain industries

COMMAND ES

Individuals and private groups make decisions about what to produce

People decide what they will and will not purchase and what job they will hold

Based on the idea of free enterprise or capitalism Idea that private individuals or groups have the right to own

property or businesses and make a profit with only limited govt interference

MARKET ES

No country in the world has a PURE market ES, the next alternative is…..

Mixed economies – one in which the govt supports and regulates free enterprise through decisions that affect the marketplace

Govt’s responsibility is to keep the economic system fair

MARKET ES