sociologychapter 13 the economy and politics preview section 1: the economic institutionthe economic...

Sociology Chapter 13

The Economy and Politics

Preview

Section 1: The Economic Institution

Section 2: The Political Institution

Chapter Wrap-Up


Read to Discover

• What are the characteristics of the capitalist and the socialist economic systems?

• What developments have transformed the American economic system?



Question

What are the similarities and differences between capitalism and

socialism?



Capitalism Socialism

ECONOMIC MODELS

• factors of factors of production owned production owned by individualsby individuals

• forces of profit and forces of profit and competition competition regulate economic regulate economic activityactivity

• minimum minimum government government interferenceinterference

• industrial and industrial and postindustrial postindustrial societiessocieties

• ““pure” forms pure” forms are ideal typesare ideal types

• factors of factors of production owned production owned by the governmentby the government

• pure form is pure form is communismcommunism

• economic activity economic activity regulated by the regulated by the governmentgovernment



CAPITALISM:• Factors of production—resources needed to

produce goods and services—are owned by individuals

• Forces of profit (self-interest) and competition regulate economic activity

• Minimal government interference; prices are regulated by the laws of supply and demand



SOCIALISM:

• Factors of production are owned by the government

• Economic activity regulated by the government and by social needs

• Pure form is communism



BOTH:

• Exist in industrial and postindustrial societies

• “Pure” forms are ideal types



Question

What developments have transformed the

American economic system?



• Rise of Corporate Capitalism—has changed the relationship between business ownership and control (few stockholders control businesses) and created oligopolies

• Economic Globalization—many of the large corporations are also multinational

• Changing Nature of Work—shift from an industrial base to a service base due, in part, to technology

• E-Commerce—business conducted over the Internet, which is based on information



Read to Discover

• How does the exercise of power vary by type of government?

• What are the major characteristics of the U.S. political system?



• Traditional Authority—power that is based on long-standing custom

• Rational-Legal Authority—based on formal rules and regulations

• Charismatic Authority—based on a leader’s charisma

• Coercion—power that is considered illegitimate by the people being governed



• Democracy—power exercised through the people

• Monarchy—one person rules

– Constitutional Monarchy—power rests primarily with elected officials

– Absolute Monarchy—hereditary ruler holds absolute power

• Dictatorship—power is in the hands of a single individual

• Junta—power has been seized by a small group



Question

What are the major characteristics of the U.S. political system?



Public participationThree branches of

government

Major Characteristics of the U.S. Political System

Two major political parties

Proportional representation

Interest groups and PACs



• Dominated by two major political parties—Democrats and Republicans

• Includes interest groups and PACs, which help groups with minority views influence government decisions



• Has proportional representation, but debate exists over who holds power

• Consists of three branches of the government—the executive, legislative, and judicial

• Includes public participation, although voter participation varies and is relatively low overall



Chapter Wrap-Up Understanding Main Ideas

1. How do capitalism and socialism differ in terms of ownership of the factors of production and in terms of regulation of economic activity?

2. How has e-commerce changed the American economy?

3. How do democratic and authoritarian governments differ in the ways they use power?

4. What methods do interest groups and political action committees use to win political and public support for their issues?

sociologychapter 13 the economy and politics preview section 1: the economic institutionthe economic...

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