1. Chapter 14 Politics and the Economy Political Institutions and the State Who Governs? Models of U.S. Democracy Individual Participation in U.S. Government Modern Economic Systems The U.S. Economic System Work in the United States

2. Two Kinds of Power 1. Coercion is power based on fear by using force and intimidation. 2. Authority is power based on socially accepted norms that maintain the right of some authority to wield power.

3. Three Types of Authority 1. Traditional authority is rooted in established roles, like father, elder, or king. 2. Charismatic authority arises from the exceptional personality that may sway and inspire others. 3. Rational-legal authority is based on formal regulations and laws.

4. Characteristics of The State Jurisdiction - includes policing, armed forces, taxation, conflict resolution, relationships with other states, and resources for collective goals. Coercion - monopolizing the use of physical force through police powers, taxation, and the maintenance of armed forces.

5. Models of U.S. Democracy Pluralist - checks and balances makes it difficult for any branch of government to force its will on any other branch. Power-elite - a relatively unified elite group makes all major decisions in its own interests. state autonomy - government bureaucracy controls personnel and budgets and thus has power.

6. Social Factors and Political Participation 1. Social class - those who benefit most are most inclined to get involved in politics. 2. Age - 50% of U.S. voters are over 45 y.o. 3. Race and ethnicity - African-Americans are more inclined to political participation than in the past.

7. Social Factors and Political Participation 4. Differentials in office holding - about 1% of federal legislators are African-Americans and only 8 are women. 5. Party affiliation - Republicans have traditionally represented business while Democrats have been more supportive of the interests of workers and the disadvantaged.

8. Why Doesn’t the United States Have a Worker’s Party? U.S. standard of living is sufficiently luxurious to lull many people into complacency. American dream continues to influence people to think of individualistic over common goals.

9. Capitalism Private ownership of the means of production - land, capital, and the labor of workers. Encourages hard work and innovation toward maximizing competitive advantage. Does not attend to distribution and does not provide for the public good.

10. Socialism The means of production is owned by the workers and distribution is for the public good. Creed of pure socialism: from each according to ability, to each according to need. The key drawback of socialism is the absence of personal economic incentive.

11. Professions Production of an unstandardized product. High degree of personal involvement. Wide knowledge of a specialized skill. Sense of obligation to one's art. Sense of group identity. Significant service to society.

12. The Downside of Technology Deskilling of some jobs. Displacements of the work force as some jobs vanish and new ones appear. Big brother jitters and stress as computerized jobs also provide the means of constant worker monitoring by supervisors.

13. Using Public Policy to Protect U.S. Jobs The conservative free market approach - proposes that the way to keep jobs in the U.S. is to reduce wages and benefits. New industrial policies - government should restrict plant closings and support investments in local economies to provide more secure jobs.

14. Using Public Policy to Protect U.S. Jobs Social welfare policies - helping people who are being thrown out of work through more generous unemployment benefits, paid leave for employees who are about to be laid off, and extensive job re-training programs.