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Investigate political labels, systems, and philosophies worldwide. Compare constitutional monarchy, communism, socialism. Analyze market vs command economies & mixed systems. Explore democratic socialist parties. Learn about capitalism, socialism, communism differences. Study economies in transition.
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Comparative Government Unit VI
Explorations • What about other countries? • Political Labels • Fundamental Law • Political Systems • Three Powers • Economic Systems
Essential Question • 1. What are the advantages and disadvantages of the political and economic systems of other nations around the world?
They Have Them Too • Liberal Open to change, Government promotes equality & social freedom • Conservative Traditional solutions, Government promotes order & economic freedom • Moderate Middle of the Road, Promotes compromise
Worldwide Governments • Constitutional Monarchy • Sultanate • Junta – Military Dictatorship • Theocracy • Oligarchy Tribal, etc • Communism • Socialism • Parliamentary Democracy
Differences • US is a conservative nation by comparison • Our liberal parties are very conservative abroad • Other nations have many more political parties • Proportional Representation • Other nations’ political parties change more frequently
“Democratic Socialist” • Similar to socialism but with a strong emphasis on democratic decision-making both in politics and economic affairs • Very common party in European countries
Free Enterprise • Private individuals control production, wages, prices, etc • “Invisible Hand” controls the market • Supply & Demand • No guarantees
Central Planning • Government controls control production, wages, prices, etc • Series of Five Year Plans • Basic needs are met for all
Mixed Economies • Free Enterprise has major flaws • Central Planning has major flaws • All nations today have a combination of the two • Spectrum
Comparative Government Unit VI
How Does An Economy Work? • Nations must answer 3 basic Economic question: • What goods and services should be produced? • How should the goods and services be produced? • For who should the goods and services be produced? • The way a nation answers these questions defines their economy.
Types of Economic Systems • All economic systems fall into one of two broad categories: • Market (or Capitalist) System • Command (or Planned) System • No economy can be purely market or purely command • Elements of both economies are found in all systems this makes all economies mixed
A Pure Market Economy • No government involvement in economic decisions • The government lets the people answer the three basic economic questions • What? Customers decide through their purchases • How? This is left up to the individual business –BUT- a business must be profitable • Who? People who have money can buy more – this encourages hard work and investments
A Pure Command Economy The Government controls the factors of production and makes all the decisions The government is responsible for answering the three economic questions What? One person ( a dictator) or a group of government officials (central planning committee) decide what is to be produced How? The government owns all the factors of production and makes all the decisions about production Who? The government decide who receives what is produced in the economy
MixedEconomies • Some government involvement through mandatory laws and regulations that businesses follow • Labor Laws, Minimum Wage • The government provides social programs for those who need help • Medicare, welfare • All economies are mixed they are classified based on how much the government is involved in the process
Continuum of Economic Systems Market Economy Capitalism On the far right Command Economy Communism On the far left Socialism Left of center but right of communism
Capitalism • An economic system characterized by private ownership of businesses and marketplace competition • The government is concerned about its people and takes care of those who cannot care for themselves • The political system is a democracy with leaders elected by the people • The United States and Japan are examples of a Capitalist Economy
Socialism • Increased government involvement in people’s lives and the economy • The main goal is to keep prices low for all people and to provide employment for many • The government runs key industries and makes economic decisions • More social services for all and free or low cost medical care • Canada, Germany, Sweden, Australia and Great Britain are all examples of socialist economies
Communism • The government runs everything (Totalitarian government) • Only one political party, the Communist party, runs the government • All people able to work are assigned jobs – there is virtually no unemployment • The government assigns housing, schools, and occupations • There is little to no economic freedom • Cuba, North Korea, and China are examples
Economies In Transition • The breakup of the Soviet Union is the best example of a country changing from a Command Economy to a Market Economy • State owned industries have been privatized (government owned businesses are sold to private citizens) • Today even socialist countries are selling some of their government owned businesses to individuals
United States • Written Constitution
United States • Republic with an elected President
United States • Separation of Powers into three branches of government
United States • Regularly scheduled elections—Nov.
United States • Political parties aid in the election process
United States • Supreme Court decide according to constitution
United States • Power is divided between levels: Federalism
Great Britain • Unwritten Constitution
Great Britain • Limited Monarchy Prime Minister represents majority party
Great Britain • No separation of Powers—real power rests with Parliament • Parties keep power balanced
Great Britain • No fixed date for elections • Elections announced by Prime Minister
Great Britain • Political parties play more role in governing process • Parties help to form the government
Great Britain • Courts rule according to precedent and acts of parliament
Great Britain • No division of power: All power with Central Govt.
Both • People enjoy right to vote…Must be at least 18
Both • Civil Rights/ Liberties are guaranteed
Both • Bicameral Legislature (Britain: House of Lords and Commons)
Both • 2 Party System (Britain: Conservative and Labour)