1. Economics and Politics
Society, Seventh Edition

2. Agricultural Revolution
The Economy -- The social institution responsible for organizing the production, distribution, and consumption of goods and services
Four factors that made the economy a distinct social institution
Agricultural technology
Job specialization
Permanent settlements
Trade
Society, Seventh Edition

3. Industrialization Introduced Five Notable Changes To Western Societies
New sources of energies
Steam-fueled machine operation
Centralization of work in factories
Impersonal factories replaced cottage industries
Manufacturing and mass production
Turning raw materials into a wide range of products
Specialization
Diverse division of labor and lower overall skill requirements
Wage labor
Working for strangers with intense supervision
Society, Seventh Edition

4. The Information Revolution
Postindustrial economy– a productive system based on service work and high-technology
The information revolution has altered work the fundamental character of work in three ways
From tangible products to intangible ideas
Creating and manipulating symbols in modern society
From mechanical skills to literacy skills
Speaking, writing, and computer knowledge
From factories to almost anywhere
Laptops, cell phones, virtual office
Society, Seventh Edition

5. Society, Seventh Edition
Figure (p. 304) The Size of Economic Sectors by Income Level of Country
Society, Seventh Edition

6. Society, Seventh Edition
Sectors Of The Economy
Primary sector
Generation of raw materials from the environment
Low income countries = 23% of economy
High income countries = 2% of economy
Secondary sector
Transformation of raw materials into manufactured goods
Growth rapid in all industrialized nations or those entering the phase
Tertiary sector
Economy generates services rather than goods
Low income countries = 38% of economy
High income countries = 68% of economy
Society, Seventh Edition

7. Society, Seventh Edition
The Global Economy
Global Economy – expanding economic activity with little regard to national borders
This activity has four major consequences
Global division of labor
Products pass through many countries
National governments n longer control the economic activity within their borders
A small number of businesses now control a vast share of the world’s wealth
Society, Seventh Edition

8. Society, Seventh Edition
CAPITALISM
An economic system where the natural resources and the means of producing goods and services is privately owned
Three distinct features:
Private ownership of property
Key concept of capitalism
Pursuit of personal profit
Simply a “matter of doing business”
Competition and consumer sovereignty
The “invisible hand” is at work so leave the market alone
Society, Seventh Edition

9. Society, Seventh Edition
SOCIALISM
An economic system where the natural resources and the means of producing goods and services are collectively owned
Three distinct features:
Collective ownership of property
Limits the right to private property
Pursuit of collective goals
Pursuit of profits stands at odds
Government control of the economy
Centrally controlled economy
Consumers should not drive economy
Society, Seventh Edition

10. Society, Seventh Edition
Alternative Systems
Communism – a hypothetical economic ad political system in which all members of a society are socially equal
Welfare Capitalism – an economic and political system that combines a mostly market-based economy with extensive social welfare programs
State Capitalism – an economic and political system in which companies are privately owned but cooperate closely with the government
Society, Seventh Edition

11. CAPITALSIM VS. SOCIALSIM
Economic productivity
GDP is $5,000.00
Economic equality
Less income disparity
Overall well-being
Lower standards of living, but less disparity
Personal freedom
Stress is placed upon freedom from basic needs
Economic productivity
GDP is $13,500.00
Economic equality
More income disparity
Overall well-being
A high quality of life, but greater disparities
Personal freedoms
Are the heart of a capitalistic system; Need creative forces
Society, Seventh Edition

12. Society, Seventh Edition
THE WORKFORCE
THE DUAL LABOR MARKET
PRIMARY LABOR MARKET
EXTENSIVE BENEFITS TO WORKERS
SECONDARY LABOR MARKET
MINIMAL BENEFITS TO WORKERS
LABOR UNIONS
ORGANIZED LABOR SEEKING BETTER WAGES AND BENEFITS FOR MEMBERS
DECLINE OF UNIONS
LOSS OF HIGHLY UNIONIZED JOBS
CONCESSIONS HAVE INCLUDED DISSOLUTION OF UNIONS
MANY TEMPORARY WORKERS THESE DAYS
Society, Seventh Edition

13. TRAITS OF PROFESSIONALS
Profession – a prestigious white color occupation that requires extensive formal education
Theoretical knowledge
Extensive schooling
Self-regulated practice
Participation in associations
Authority over clients
Follow my suggestions
Orientation to community rather than self-interest
Not the pay, but the help
Society, Seventh Edition

14. TRAITS OF PROFESSIONALS
PARAPROFESSIONALS
NOT ABLE TO CLAIM FULL PROFESSIONAL STATUS
Includes paralegals & medical technicians
SELF-EMPLOYMENT
EARNING A LIVING WITHOUT WORKING FOR A LARGE CORPORATION
WOMEN FIND FREEDOM AND OPPORTUNITY
Society, Seventh Edition

15. Effects of Computers on Work
“De-skilling” labor
Machines make decision-makers obsolete
Making work more abstract
Understanding rather than “doing”
Limiting workspace interaction
Isolates workers
Enhance employer’s control of workers
Electronic monitors
Society, Seventh Edition

16. Society, Seventh Edition
Figure (p. 314) Average Hourly Wages for Workers in Manufacturing, 1999
Society, Seventh Edition

17. Society, Seventh Edition
CORPORATION AN ORGANIZATION WITH A LEGAL EXISTENCE, INCLUDING RIGHTS AND LIABILITIES, APART FROM THOSE OF ITS MEMBERS
ECONOMIC CONCENTRATION
IN 2002, WAL-MART WAS THE LARGEST
$214 BILLION IN REVENUE
700,000 EMPLOYEES
CONGLOMERATES - SEVERAL SMALLER CORPORATIONS
STRATEGY FOR DIVERSIFYING
INTERLOCKING DIRECTORATES
COMPETITION IS A GREY AREA
MONOPOLY: DOMINATION OF A MARKET BY ONE CORPORATION
OLIGOPOLY: DOMINATION OF A MARKET BY A FEW CORPORATIONS
Society, Seventh Edition

18. Society, Seventh Edition
Politics & Government
Politics
The social institution that distributes power, sets a society’s agenda, and makes decisions
Power
The ability to achieve desired ends despite resistance from others
Government
A formal organization that directs the political life of a society
Society, Seventh Edition

19. Authority Power People Perceive As Legitimate, Not Coercive
Traditional
Power legitimized through respect for long established cultural patterns
Rational-legal
Power legitimized by legally enacted rules and regulations
Charismatic
Power legitimized through extraordinary personal abilities that inspire devotion and obedience
Routinization of charisma
The transformation of charismatic authority into some combination of traditional and bureaucratic authority
Society, Seventh Edition

20. Evolution of Political Systems
Hunting and Gathering
Like family: specialized roles
Agrarian Societies
Small elite gaining power
Political States
Restricted governing
Modern Nation-States
Modern technology brought about larger-scale political systems referred to as nation-states
Society, Seventh Edition

21. Society, Seventh Edition
THE MONARCHY RULE BY A SINGLE FAMILY OVER GENERATIONS TYPICAL OF ANCIENT AGRARIAN SOCIETIES
ABSOLUTE MONARCHY
Rulers monopolizing power based on divine right
Modern Example: Saudi Arabia
CONSTITUTIONAL MONARCHIES
Modern-day monarchies
More figure head than ruler
Political principles rule
Elected official actually rules
Modern Example: Great Britain, Spain, Denmark, etc
Society, Seventh Edition

22. Democracy Linked to Rational-legal Authority
Democracy – A political system which gives power to the people as a whole
Representative Democracy – Authority in hands of elected leaders, accountable to the people
The U.S. Is not truly democratic
extensive use of unelected bureaucratic officials
rich have more political clout than poor
Capitalist societies claim to be democratic because of personal liberties while socialist countries claim to be democratic because of economic equality
Society, Seventh Edition

23. Global Map 12-3 (p. 318) Political Freedom in Global Perspective
Society, Seventh Edition

24. Society, Seventh Edition
Other Forms
Authoritarianism
A political system that denies popular participation in government
Totalitarianism
A highly centralized political system that extensively regulates people’s lives
Society, Seventh Edition

25. Society, Seventh Edition
Lobbies
SPECIAL INTEREST GROUPS
POLITICAL ALLIANCE OF PEOPLE INTERESTED IN SOME ECONOMIC OR SOCIAL ISSUE
NRA, AARP, AFL-CIO, ACLU, Christian Coalition
POLITICAL ACTION COMMITTEES
ORGANIZATIONS FORMED BY SPECIAL INTEREST GROUPS, INDEPENDENT OF POLITICAL PARTIES, TO PURSUE POLITICAL AIMS BY RAISING AND SPENDING MONEY
Society, Seventh Edition

26. Society, Seventh Edition
Theoretical Analysis
Pluralist model
Power is dispersed among many competing interests groups
The power-elite model
“Real” power is concentrated among the very rich in America
Can the wealthiest in America ever encounter pressure to not act in their own best interests?
Marxist model
Power is divided along the lines of a political economy
Bias is rooted within the nation’s social institutions
Revolution is the only answer
Society, Seventh Edition

27. Society, Seventh Edition
Critical Evaluation
Research evidence can be cited that supports all there perspectives. In conclusion what we can say is:
Nearly all are allowed to participate in the political process, but large numbers don’t
Major parties and their candidates tend to be supported and support capitalist interests of the powerful few
Third parties are marginalized and excluded from major debates
Society, Seventh Edition

28. Society, Seventh Edition
Political Revolution
Political Revolution – The overthrow of a political order in order to establish another
Coup d’etat – one leader disposing another
Political Revolutions have common traits
Rising expectations
Tend to happen when quality of life is improving
Unresponsive government
Government unwilling or unable to reform
Radical leadership by intellectuals
Revolution is often “university centered” students play crucial role
Establishing new legitimacy
Guarding against the counterrevolution
Society, Seventh Edition

29. Characteristics of Terrorism
Acts of violence, or the threat of violence, employed by an individual or a group as a political strategy
Define violence as a legitimate political tactic while bypassing established channels of negotiation
Used by governments as well as individuals
State Terrorism – use of violence generally without the support of law, by government officials
Democratic countries are especially vulnerable to terrorism
It is a matter of definition, one person’s terrorist is another's freedom fighter
Society, Seventh Edition

30. Quincy Wright’s Five Factors That Promote War
Perceived threats
Threats to people and territory
Social problems
Internal problems and frustration
Political objectives
Show of force and protecting one’s own property
Moral objectives
Rallying people around morality
Absence of alternatives
Limited options
Society, Seventh Edition

31. Figure 12-7 (p. 327) Deaths of Americans in Eleven U.S. Wars
Society, Seventh Edition

32. Society, Seventh Edition
Militarism
The worlds nations spend $1 trillion annually
$ for every person on earth
The politics of war
Military industrial complex – the close association between the federal government, the military, and the defense industry
Follow the money and the careers of pentagon officials after they leave the military as see where the two end up
Nuclear weapons
25,000 warheads worldwide
Nuclear proliferation – the acquisition of nuclear-weapon technology by more and more nations
Society, Seventh Edition

33. Reducing Chances For War And Increasing Chances Of Peace
DETERRENCE
BALANCE OF POWER BETWEEN SOCIETIES
HIGH-TECHNOLOGY DEFENSE
STRATEGIC DEFENSE INITIATIVE
DIPLOMACY AND DISARMAMENT
KEEP TALKING ABOUT REDUCING ARMS
RESOLVING UNDERLYING CONFLICT
INCREASE SPENDING ON PROMOTING PEACE RATHER THAN BUILDING UP MILITARY
Society, Seventh Edition