Economics and Politics

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Economics and Politics
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Agricultural Revolution

• The Economy -- The social institution responsible
  for organizing the production, distribution, and
  consumption of goods and services
• Four factors that made the economy a distinct
  social institution
• Agricultural technology
• Job specialization
• Permanent settlements
• Trade

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Industrialization Introduced Five Notable Changes
To Western Societies

• New sources of energies
• Steam-fueled machine operation
• Centralization of work in factories
• Impersonal factories replaced cottage industries
• Manufacturing and mass production
• Turning raw materials into a wide range of
  products
• Specialization
• Diverse division of labor and lower overall skill
  requirements
• Wage labor
• Working for strangers with intense supervision

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The Information Revolution

• Postindustrial economy a productive system based
  on service work and high-technology
• The information revolution has altered work the
  fundamental character of work in three ways
• From tangible products to intangible ideas
• Creating and manipulating symbols in modern
  society
• From mechanical skills to literacy skills
• Speaking, writing, and computer knowledge
• From factories to almost anywhere
• Laptops, cell phones, virtual office

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Figure 12-1 (p. 304)The Size of Economic
Sectors by Income Level of Country
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Sectors Of The Economy

• Primary sector
• Generation of raw materials from the environment
• Low income countries 23 of economy
• High income countries 2 of economy
• Secondary sector
• Transformation of raw materials into manufactured
  goods
• Growth rapid in all industrialized nations or
  those entering the phase
• Tertiary sector
• Economy generates services rather than goods
• Low income countries 38 of economy
• High income countries 68 of economy

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The Global Economy

• Global Economy expanding economic activity with
  little regard to national borders
• This activity has four major consequences
• Global division of labor
• Products pass through many countries
• National governments n longer control the
  economic activity within their borders
• A small number of businesses now control a vast
  share of the worlds wealth

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CAPITALISM

• An economic system where the natural resources
  and the means of producing goods and services is
  privately owned
• Three distinct features
• Private ownership of property
• Key concept of capitalism
• Pursuit of personal profit
• Simply a matter of doing business
• Competition and consumer sovereignty
• The invisible hand is at work so leave the
  market alone

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SOCIALISM

• An economic system where the natural resources
  and the means of producing goods and services are
  collectively owned
• Three distinct features
• Collective ownership of property
• Limits the right to private property
• Pursuit of collective goals
• Pursuit of profits stands at odds
• Government control of the economy
• Centrally controlled economy
• Consumers should not drive economy

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Alternative Systems

• Communism a hypothetical economic ad political
  system in which all members of a society are
  socially equal
• Welfare Capitalism an economic and political
  system that combines a mostly market-based
  economy with extensive social welfare programs
• State Capitalism an economic and political
  system in which companies are privately owned but
  cooperate closely with the government

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CAPITALSIM VS. SOCIALSIM

• Economic productivity
• GDP is 5,000.00
• Economic equality
• Less income disparity
• Overall well-being
• Lower standards of living, but less disparity
• Personal freedom
• Stress is placed upon freedom from basic needs

• Economic productivity
• GDP is 13,500.00
• Economic equality
• More income disparity
• Overall well-being
• A high quality of life, but greater disparities
• Personal freedoms
• Are the heart of a capitalistic system Need
  creative forces

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THE WORKFORCE

• THE DUAL LABOR MARKET
• PRIMARY LABOR MARKET
• EXTENSIVE BENEFITS TO WORKERS
• SECONDARY LABOR MARKET
• MINIMAL BENEFITS TO WORKERS
• LABOR UNIONS
• ORGANIZED LABOR SEEKING BETTER WAGES AND BENEFITS
  FOR MEMBERS
• DECLINE OF UNIONS
• LOSS OF HIGHLY UNIONIZED JOBS
• CONCESSIONS HAVE INCLUDED DISSOLUTION OF UNIONS
• MANY TEMPORARY WORKERS THESE DAYS

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TRAITS OF PROFESSIONALS

• Profession a prestigious white color occupation
  that requires extensive formal education
• Theoretical knowledge
• Extensive schooling
• Self-regulated practice
• Participation in associations
• Authority over clients
• Follow my suggestions
• Orientation to community rather than
  self-interest
• Not the pay, but the help

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TRAITS OF PROFESSIONALS

• PARAPROFESSIONALS
• NOT ABLE TO CLAIM FULL PROFESSIONAL STATUS
• Includes paralegals medical technicians
• SELF-EMPLOYMENT
• EARNING A LIVING WITHOUT WORKING FOR A LARGE
  CORPORATION
• WOMEN FIND FREEDOM AND OPPORTUNITY

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Effects of Computers on Work

• De-skilling labor
• Machines make decision-makers obsolete
• Making work more abstract
• Understanding rather than doing
• Limiting workspace interaction
• Isolates workers
• Enhance employers control of workers
• Electronic monitors

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Figure 12-4 (p. 314)Average Hourly Wages for
Workers in Manufacturing, 1999
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CORPORATIONAN ORGANIZATION WITH A LEGAL
EXISTENCE, INCLUDING RIGHTS AND LIABILITIES,
APART FROM THOSE OF ITS MEMBERS

• ECONOMIC CONCENTRATION
• IN 2002, WAL-MART WAS THE LARGEST
• 214 BILLION IN REVENUE
• 700,000 EMPLOYEES
• CONGLOMERATES - SEVERAL SMALLER CORPORATIONS
• STRATEGY FOR DIVERSIFYING
• INTERLOCKING DIRECTORATES
• COMPETITION IS A GREY AREA
• MONOPOLY DOMINATION OF A MARKET BY ONE
  CORPORATION
• OLIGOPOLY DOMINATION OF A MARKET BY A FEW
  CORPORATIONS

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Politics Government

• Politics
• The social institution that distributes power,
  sets a societys agenda, and makes decisions
• Power
• The ability to achieve desired ends despite
  resistance from others
• Government
• A formal organization that directs the political
  life of a society

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AuthorityPower People Perceive As Legitimate,
Not Coercive

• Traditional
• Power legitimized through respect for long
  established cultural patterns
• Rational-legal
• Power legitimized by legally enacted rules and
  regulations
• Charismatic
• Power legitimized through extraordinary personal
  abilities that inspire devotion and obedience
• Routinization of charisma
• The transformation of charismatic authority into
  some combination of traditional and bureaucratic
  authority

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Evolution of Political Systems

• Hunting and Gathering
• Like family specialized roles
• Agrarian Societies
• Small elite gaining power
• Political States
• Restricted governing
• Modern Nation-States
• Modern technology brought about larger-scale
  political systems referred to as nation-states

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THE MONARCHYRULE BY A SINGLE FAMILY OVER
GENERATIONS TYPICAL OF ANCIENT AGRARIAN SOCIETIES

• ABSOLUTE MONARCHY
• Rulers monopolizing power based on divine right
• Modern Example Saudi Arabia
• CONSTITUTIONAL MONARCHIES
• Modern-day monarchies
• More figure head than ruler
• Political principles rule
• Elected official actually rules
• Modern Example Great Britain, Spain, Denmark,
  etc

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DemocracyLinked to Rational-legal Authority

• Democracy A political system which gives power
  to the people as a whole
• Representative Democracy Authority in hands of
  elected leaders, accountable to the people
• The U.S. Is not truly democratic
• extensive use of unelected bureaucratic officials
• rich have more political clout than poor
• Capitalist societies claim to be democratic
  because of personal liberties while socialist
  countries claim to be democratic because of
  economic equality

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Global Map 12-3 (p. 318)Political Freedom in
Global Perspective
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Other Forms

• Authoritarianism
• A political system that denies popular
  participation in government
• Totalitarianism
• A highly centralized political system that
  extensively regulates peoples lives

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Lobbies

• SPECIAL INTEREST GROUPS
• POLITICAL ALLIANCE OF PEOPLE INTERESTED IN SOME
  ECONOMIC OR SOCIAL ISSUE
• NRA, AARP, AFL-CIO, ACLU, Christian Coalition
• POLITICAL ACTION COMMITTEES
• ORGANIZATIONS FORMED BY SPECIAL INTEREST GROUPS,
  INDEPENDENT OF POLITICAL PARTIES, TO PURSUE
  POLITICAL AIMS BY RAISING AND SPENDING MONEY

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Theoretical Analysis

• Pluralist model
• Power is dispersed among many competing interests
  groups
• The power-elite model
• Real power is concentrated among the very rich
  in America
• Can the wealthiest in America ever encounter
  pressure to not act in their own best interests?
• Marxist model
• Power is divided along the lines of a political
  economy
• Bias is rooted within the nations social
  institutions
• Revolution is the only answer

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Critical Evaluation

• Research evidence can be cited that supports all
  there perspectives. In conclusion what we can
  say is
• Nearly all are allowed to participate in the
  political process, but large numbers dont
• Major parties and their candidates tend to be
  supported and support capitalist interests of the
  powerful few
• Third parties are marginalized and excluded from
  major debates

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Political Revolution

• Political Revolution The overthrow of a
  political order in order to establish another
• Coup detat one leader disposing another
• Political Revolutions have common traits
• Rising expectations
• Tend to happen when quality of life is improving
• Unresponsive government
• Government unwilling or unable to reform
• Radical leadership by intellectuals
• Revolution is often university centered
  students play crucial role
• Establishing new legitimacy
• Guarding against the counterrevolution

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Characteristics of Terrorism

• Acts of violence, or the threat of violence,
  employed by an individual or a group as a
  political strategy
• Define violence as a legitimate political tactic
  while bypassing established channels of
  negotiation
• Used by governments as well as individuals
• State Terrorism use of violence generally
  without the support of law, by government
  officials
• Democratic countries are especially vulnerable to
  terrorism
• It is a matter of definition, one persons
  terrorist is another's freedom fighter

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Quincy Wrights Five Factors That Promote War

• Perceived threats
• Threats to people and territory
• Social problems
• Internal problems and frustration
• Political objectives
• Show of force and protecting ones own property
• Moral objectives
• Rallying people around morality
• Absence of alternatives
• Limited options

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Figure 12-7 (p. 327)Deaths of Americans in
Eleven U.S. Wars
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Militarism

• The worlds nations spend 1 trillion annually
• 160.00 for every person on earth
• The politics of war
• Military industrial complex the close
  association between the federal government, the
  military, and the defense industry
• Follow the money and the careers of pentagon
  officials after they leave the military as see
  where the two end up
• Nuclear weapons
• 25,000 warheads worldwide
• Nuclear proliferation the acquisition of
  nuclear-weapon technology by more and more nations

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Reducing Chances For War And Increasing Chances
Of Peace

• DETERRENCE
• BALANCE OF POWER BETWEEN SOCIETIES
• HIGH-TECHNOLOGY DEFENSE
• STRATEGIC DEFENSE INITIATIVE
• DIPLOMACY AND DISARMAMENT
• KEEP TALKING ABOUT REDUCING ARMS
• RESOLVING UNDERLYING CONFLICT
• INCREASE SPENDING ON PROMOTING PEACE RATHER THAN
  BUILDING UP MILITARY