1. Government and Economic Systems

2. What purpose does government serve?
Maintains social order
Provides public services
Ensures national security
Supports country’s economic well-being

3. What makes up a government?
Make and enforce policies and laws
Large governments are usually organized into levels (State, county, cities, towns, etc.)
Unitary or Federal

4. Unitary System All powers to the national or central government
Regional entities are administrative only
Examples: Belgium, Bulgaria, France, Great Britain, The Netherlands, Japan, Poland, Romania, the Scandinavian countries, Spain, and many of the Latin-American and African countries

5. Federal System or Federalism
Power is divided between the federal (national) government and state governments
Each level has sovereign rights…What is sovereignty???? (independent powers)
Examples: Germany, United States, Pakistan, Netherlands, India, Canada, Argentina

6. Types of Governments Limited Government – Everyone must obey the laws.
Constitutions, statements of rights, and other laws define the limits of power
Those in power can not take advantage of their elected, appointed, or inherited positions

7. Types of Governments – Limited Governments
Democracy - several forms
Majority Rule in free and fair elections
Leaders rule with the consent of the citizens
The people hold sovereign power
Individual rights and political minorities are protected
Due Process
Examples: Costa Rica, Colombia, Panama, Philippines, and Greece

8. Types of Governments – Limited Governments
Republic – “They define a republic to be a government of laws, and not of men.” John Adams
Protects liberty, especially by incorporating rule of law that can not be arbitrarily ignored by the government
emphasis on widespread citizen participation, civic virtue, and opposition to corruption
Not every democracy is a republic…Why?? Example???

9. Types of Governments – Limited Governments
Constitutional Monarchy –
a constitutional system which acknowledges an elected or hereditary monarch (king or queen) as head of state, a king or queen reigns with limits to their power along with a governing body (i.e. Parliament)
the prime minister, whose power derives directly or indirectly from elections, is head of government
Examples: The Netherlands, Belgium, Norway, Denmark, Spain, Luxembourg, Monaco, Liechtenstein and Sweden

10. Types of Government Unlimited Government –
Control is placed solely with the ruler and his/her appointees
No limits on authority
Rulers can not be removed by peaceful, legal means
NO PROTECTED INDIVIDUAL RIGHTS

11. Types of Governments – Unlimited Governments
Autocracy (several forms) –
all power and authority to rule belong to a single person
Power is achieved and maintained through inheritance or by use of military or police power
No individual rights

12. Types of Governments – Unlimited Governments – Autocracy
Totalitarianism –
dictator controls all aspects of people’s lives
A single leader determines all government policies
a system of terror; a monopoly of the means of communication and physical force
Individual rights do not exist, government is not responsible to the people and the people have no power
Examples: Joseph Stalin in Soviet Union, Adolf Hitler in Germany, and Benito Mussolini in Italy

13. Types of Governments – Unlimited Governments – Autocracy
Monarchy (absolute) –
king or queen exercises the supreme powers of a government, complete and unlimited powers
Position is usually inherited
No individual rights
Examples: Brunei, Oman, Saudi Arabia and Vatican City

14. Types of Governments – Unlimited Governments
Oligarchy –
Small group controls government decision-making
Power from wealth, military power, social position, or combination
Aristocracy - powerful families whose children were raised and mentored to be heirs of the power

15. Types of Governments – Unlimited Governments – Oligarchy
Communist –
seeks to establish a classless, stateless social organization based on common ownership of the means of production
Government owns all property and makes all decisions
Government controls the economy (Command Economy)
Communist Party is the ruling party
Examples: People’s Republic of China, Republic of Cuba, Socialist Republic of Vietnam, and Democratic People’s Republic of Korea

16. Types of Governments – Unlimited Governments – Oligarchy
Socialism –
property and the distribution of wealth are subject to control by the community for the purposes of increasing social and economic equality and cooperation
“worker’s councils” or the state all decisions for citizens
Means of production are collectively owned

17. What type of government is the United States?
Why?

18. Economic Systems

19. Economic System determines….
What and how many goods and services should be produced?
How should they be produced?
Who gets the goods and services that are produced?

20. Traditional Economy Habit and custom determine economic activity
Resources are allocated by inheritance
Strongly connected to subsistence farming
Found today in underdeveloped, agricultural areas

21. Market Economy
Individuals and private groups make decisions about what to produce
Free Enterprise – idea that private individuals or groups have the right to own property or businesses and make a profit w/ limited government interference
The producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government
Influenced by competition, supply, and demand
No pure market economy exists

22. Command Economy
The state or government controls all decisions about production, distribution, and pricing
Government owns all means of production – land, labor, capital (machinery, factories), and business managers
Decisions are made to benefit all of society, goods and services are distributed to all citizens equally

23. Economic Activities Primary –
taking or using natural resources directly from the earth
Examples: farming, grazing, fishing, mining, forestry

24. Secondary –
using raw materials to produce something new and more valuable
Examples: manufacturing automobiles, assembling electronic goods, producing electrical power, and making pottery

25. Examples: doctors, teachers, lawyers, truckers, and store clerks
Tertiary –
provide services to people or businesses
Examples: doctors, teachers, lawyers, truckers, and store clerks

26. Quaternary –
processing, management, and distribution of information
Examples: “white collar” professionals working in education, government, business, information processing, and research