Presentation on theme: "CHAPTER 13 The Economy and Politics"— Presentation transcript:
1CHAPTER 13 The Economy and Politics Section 1: The Economic InstitutionSection 2: The Political Institution
2Objectives: Section 1: The Economic Institution Compare and contrast the characteristics of the capitalist and the social economic systems.Discuss developments that have transformed the American economic system.
3Economic Models of Capitalism and Socialism Section 1: The Economic InstitutionEconomic Models of Capitalism and SocialismCAPITALISM:Factors of production are owned by individualsForces of profit and competition regulate economic activityMinimal government interference
4Economic Models of Capitalism and Socialism Section 1: The Economic InstitutionEconomic Models of Capitalism and Socialism(continued)SOCIALISM:Factors of production are owned by the governmentEconomic activity regulated by the governmentPure form is communism
5Economic Models of Capitalism and Socialism Section 1: The Economic InstitutionEconomic Models of Capitalism and Socialism(continued)BOTH:Exist in industrial and postindustrial societies“Pure” forms are ideal types
6The American Economy Section 1: The Economic Institution Rise of Corporate Capitalism – has changed the relationship between business ownership and controlEconomic Globalization – many of the large corporations are also multinationalThe Changing Nature of Work – shift from an industrial base to a service base due, in part, to technologyE-Commerce – business conducted over the internet, which is based on information
7Objectives: Section 2: The Political Institution Explain how the exercise of power varies by type of governmentDescribe the major characteristics of the U.S. political system.
8The Exercise Of Power Section 2: The Political Institution Traditional authority – power that is based on long-standing customRational-Legal – based on formal rules and regulationsCharismatic – based on a leader’s charisma
9The U.S. Political System Section 2: The Political InstitutionThe U.S. Political SystemDominated by two major political parties – Democrats and RepublicansIncludes interest groups and PACs, which help groups with minority views influence government decisionsHas proportional representation, but debate exists over who holds power
10The U.S. Political System Section 2: The Political InstitutionThe U.S. Political System(continued)Consists of three branches of the government – the executive, legislative, and judicialIncludes public participation, although voter participation varies and is relatively low overall