ECONOMICS & POLITICAL SYSTEMS

1. ECONOMICS&POLITICAL SYSTEMS

2. WHAT IS AN ECONOMY? An ECONOMY is a system in which people • make • exchange & • use things that have value! Ex. Cars, oil, haircuts, i-pods

3. Scarcity and Choice • People cannot have everything they need and want ! • Need – Air, food and shelter • Want – item not essential to survival • Economics – How people seek to satisfy their needs and wants through choices

4. WHOTAKESPART? • EVERYONE & EVERYWHERE! • There are two categories of people in EVERY economy: CONSUMERS: people who use goods and services PRODUCERS: people who make goods and provide services

5. WHAT ARE GOODS & SERVICES? • GOODS are products that are made to be sold around the world. • A SERVICE is work done by someone for another person.

6. BASIC VS. NON-BASIC BUSINESSES There are TWO TYPES of Goods and Services: 1. BASIC BUSINESSES These businesses are necessary for human survival. * ex. hospital 2. NON-BASIC BUSINESSES These businesses are nice to have but NOT necessary. * ex. CD store

7. THE ECONOMY TREE EVERY COUNTRY HAS AN ECONOMY. IT LOOKS LIKE THIS: ECONOMY PEOPLE INVOLVED: PRODUCERS CONSUMERS THEIR JOB:MAKE/ PROVIDE GOODS/SERVICES USE GOODS/SERVICES WHAT TYPES OF JOBS? BASIC NON-BASIC BUSINESS BUSINESS

8. TYPES OF ECONOMIES THERE ARE THREE MAJOR ECONOMIES. THEY ARE: • COMMUNISM • CAPITALISM (FREE MARKET) • SOCIALISM (MIXED ECONOMY)

9. COMMUNISM • In a COMMUNIST economy, ALL businesses are owned by the government.

10. The USSR MapUSSR, formed post the Russian Revolution in 1922 was a union of Soviet Socialist republics including  • the present countries of Russia, Belarus, Lithuania, Latvia, Armenia, Azerbaijan, Georgia, Estonia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Moldova, and Ukraine. World’s largest country by area, Soviet Union was known for its unity in diversity, until the economic and political unrest in late 1980s to 1990s, which eventually resulted in the disintegration of the USSR.GeographyWorld’s largest country by area, USSR had the longest boundary and coastlines. Arctic Ocean bordered the northern part of the union, while the Pacific Ocean surrounded the eastern part, and other Asian countries bordered the southern part of the Soviet Union. Occupying one-sixth of the earth’s land, it covered approximately an area of 8,650,500 square miles, covering 11 time zones and five climatic zones, including the Steppes, Taiga Tundra, mountains, and desert climate. The geographical coordinates of Soviet Union are 55.75°N and 37.61°E.

11. CAPITALISM • In CAPITALISM, ALL business are owned by the people or private groups. • It is also called a FREE MARKET ECONOMY because producers compete for consumer’s business.

12. SOCIALISM (mixed economy) In a SOCIALIST economy: BASIC BUSINESSES are GOVERNMENT owned & NON-BASIC BUSINESS are PRIVATELY owned.

13. The EASY way to remember the economies! • COMMUNISM is like a BABY (NO INDEPENDANCE!) • SOCIALISM is like a TEENAGER (TEENAGER CAN CONTROL NON-BASIC, PARENTS CONTROL BASIC NEEDS!) • CAPITALISM is like an ADULT (ADULT CONTROLS SELF)

14. WHO HAS THIS SYSTEM? • CUBA & NORTH KOREA ARE COMMUNIST • THE US, SOUTH KOREA, AND JAPAN ARE CAPITALIST • ITALY, PORTUGAL, AND MUCH OF EUROPE ARESOCIALIST

15. WHAT IS A GOVERNMENT? GOVERNMENTS are systems that: • SET & • ENFORCE the laws in a certain place. Governments help PROTECT the citizens of a nation and RESOLVE CONFLICTS.

16. Its all Greek to me! • cracy = power • archy = rule • auto = self • oligos = few • demos = people • Theos = God Whoa….

17. Geographic Distribution of Power • Unitary Government – Central government • May distribute power to local governments • Can be unitary & democratic at the same time

18. Federal Government – power is divided between a central and several local govts. • Power above both creates a division of power, that neither can change alone • US – national and state governments

19. TYPES OF GOVERNMENTS Dictatorship /Absolute Monarchy RULE BY 1 Oligarchy RULE BY FEW Democracy RULE BY THE MAJORITY Republic RULE BY LAW Anarchy NO RULE FREEDOM

20. WORLD GOVERNMENT SYSTEMS • Monarchy – Rule by King and Queen • Constitutional Monarch – Must follow a blueprint • AbsoluteMonarch – rule by Gods right

21. Parliamentary Government • Executive is from the parliament (prime minister) • Leader of the majority party • Remain in power until they lose support of the majority of the party • Lost of confidence • Parliament may as a whole go to the voters • Helps avoid deadlock

22. ABSOLUTE MONARCHY In an ABSOLUTE MONARCHY, a king or queen has COMPLETE control over the country. The ruler inherits the throne by birth. Saudi Arabia and Brunei are two that exist today.

23. DICTATORSHIP In a DICTATORSHIP, ONE leader has COMPLETE control over a country. Their leader is called a dictator. They seize power. People are denied the right to make decisions. North Korea and Cuba are dictatorships.

24. DICTATORSHIP • All are authoritarian – unchallenged by the people (you challenge you could die) • May control every aspect of your life • Votes are often taken, but usually controlled • Legislative bodies exist • Typically militaristic in nature

25. THEOCRACY • Theocracy – God or religions is the supreme ruler • Iran & Vatican City

26. TRIBAL RULE In TRIBAL RULE, tribal members have a say in decision making. CHIEFS AND ELDERS have the final say. Decisions are based on beliefs and customs.

27. narchy • Anarchy – Absence of Government Storming of the Bastille – French Revolution

28. Who Can Participate • Democracy • Political authority rests with the people • Direct – public policy directed by citizens • Pros? Cons? • Indirect – representatives for government • Pros? Cons? • Reps. Responsible for public policy on behalf of constituents “government of the people, by the people, for the people.” - Abraham Lincoln

29. Who Can Participate • Dictatorship • Government not accountable to the people • Oldest most common form of government • Autocracy – single person holds unlimited power • Oligarchy – power to rule is held by few

30. Comparing Presidential and Parliamentary Systems of Government Presidential System Parliamentary System Voters Voters U.S. Congress House and Senate British Parliament President Barack Obama Prime Minister David Cameron