Political

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Political Economic Systems
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Government Systems

• Levels of Government (Power)
• 1. unitary system gives all key powers to the
  national or central government. State,
  provincial or local government have only limited
  powers and sovereignty.
• Ex United Kingdom and France

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• 2. federal system powers are divided between
  national and state or provincial governments.
  Each is sovereign in certain areas.
• Ex United States of America

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• 3. confederal system or confederation loose
  union of independent territories
• Ex United States under the Articles of
  Confederation and the Confederate States of
  America during the Civil War.

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Types of Authority

• 1. autocracyrule by one person
• oldest and most common form of govt
• get their position of power through inheritance
  (birth) or military power

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2 types of autocracies

• Totalitarian dictatorshipone person controls
  everything
• government does not report to the people has
  complete power
• monarchyking or queen has power through
  inheritance
• two kinds of monarchies

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• absoluteunlimited power to rule very rare today
  Ex Saudi Arabia
• constitutionalshare powers with elected
  legislators/sometimes just ceremonial
• Ex United Kingdom, Japan, Thailand, Jordan

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• 2. oligarchyrule by a few people
• source of power is religion, wealth, military
  power, social position
• Communist governments run by leaders of
  Communist Party and armed forces
• Appear to be controlled by the people of the
  country, but not really
• Legislatures only adopt policies of ruling party

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• 3. democracyrule by many people consent of
  citizens
• direct democracycitizens decide on issues
  directly
• none exists in any country at natl level
• representative democracyelect representatives
  to make laws execute them

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• republicsvoters elect all major officials
• not all democracies are republics
• Ex United Kingdom

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Economic Systems

• 3 Basic Economic Questionsall economic systems
  must answer these
• 1.     what and how many goods and services
  should be produced?
• 2.     how are they going to be produced?
• 3.      who gets the goods and services that are
  produced?

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3 Types of Economic Systemsmake decisions
differently

• 1.      traditional economyall decisions defined
  by customs, traditions (elders in the group)
• not based on what one would like to have, but
  what is customary
• Ex Inuit of Canadahunters shared with other
  families

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• 1.  market economyprivate groups and individuals
  make decisions about what to make or produce

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• based on free enterpriseidea that private
  individuals or groups have right to own property
  or businesses and make a profit with little
  government interference
• people decide what to buy or not to buy
• people decide what they want to do to make a
  living and who they want to work for
• also called capitalism

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• no pure market economy system exists
• most are mixed economiesgovernment supports and
  regulates free enterprise through decisions that
  affect the marketplace

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• 1.  Command Economyownership and direction of
  land, labor, machinery, factories, and managers
  is by the government all distribution of goods
  is by the government

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two kinds of command economies

• 1. socialistfree enterprise mixed with
  government control
• govt control of certain industries only with
  main goals of
• equal distribution of wealth
• societys control, through the govt of
  decisions about production
• public ownership of land, factories, means of
  production

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• 2. communistvery strict control of economy
  Communist Party makes all decisions about what do
  produce, how much, and how to distribute goods
  and services
• most decline in the long-run
• no competition to make products more innovative
  or better
• China Vietnam now allowing some free enterprise
  to boost economies