Chapter 11: The Economy and Politics

Power

• the ability of a person or group to influence others, even if they resist.

Types of power:(2)

1. Legitimate power-omes from having a role, position, or title that people accept as legal and appropriate(example congress

2. Coercive power relies on force or the threat of force to impose one’s will on others (example: dictator)

What is authority

• the legitimate use of power

What types of authority exist(3)

1. Traditional: Power is based on customs, traditions, and religious beliefs.

2. Charismatic: Power is based on exceptional personal abilities or a calling.

3. Rational-legal: Power is based on the rules and laws that are inherent in an elected or appointed office

Who invented/described three ideal types of authority?

Max Weber

What is Capitalism as an economic system

• an economic system in which wealth is in private hands and is invested and reinvested to produce profits

• Characteristics of Capitalism

• Private ownership of property

• Competition

• Profit

• Investment 

Deindustrialization

• a process of social and economic change due to the reduction of industrial activity, especially manufacturing

Outsourcing” or 'Offshoring"

• ending out work or jobs to another country to cut a company’s costs at home

Political systems

Totalitarianism,Authoritarianism(monarchy)

Tolitarianism

a political system in which government controls every aspect of people’s lives

Authoritarianism(monarchy)

• a political system in which the state controls the lives of its citizens but permits some degree of individual freedom

• Monarchy: authoritarian regime in which power is based on heredity

Government

 a formal organization that has the authority to make and enforce laws

• Maintains order

• Provides social services

• Regulates the economy

• Establishes educational systems

Deomacracy

a political system in which citizens control the state

Principles of deomaracy

• Individuals are the best judges of their own interests.

• Citizens select leaders who are responsive to the wishes of the majority.

• The right to vote is universal.

• The government recognizes individual rights.