Economy and Politics

1
Chapter 11

• Economy and Politics

2
Economy and Politics

• Economy is the social institution that organizes
  the production, distribution, and consumption of
  goods and services
• Politics is the social institution that guides a
  societys decision making about
• Government is the formal organization that
  directs political life in society

3
Economic Systems

• Capitalism economic system in which natural
  resources and the means of production are
  privately owned
• Socialism economic system in which natural
  resources and means of production are
  collectively owned
• Mixed Systems
• State capitalism
• Welfare capitalism

4
Economy and Politics

• Political economy
• Democracy political system in which power is
  exercised by the people as a whole
• Authoritarianism political system that denies
  popular participation in government
• Monarchy political system in which a single
  family rules from generation to generation

5
Problems of the U.S. Political Economy

• Corporations
• Monopolies and Oligopolies
• Conglomerate giant corporation composed of many
  smaller corporations
• Interlocking directorates social networks made
  up of people who serve as directors of several
  corporations at the same time
• Special-interest groups
• Voter apathy

6
Theoretical Analysis

• Structural-Functional Analysis Rule by the many
• Pluralist model views power widely dispersed
  throughout U.S. society
• Social-Conflict Analysis Rule by the few
• Power-elite model political system in which
  power is concentrated among a small elite group
• Marxist political-economy model concentration
  of wealth and power in society resulting from
  capitalism