Chapter 11 Politics and the Economy Module 47 Power and Authority • Political system: social institution responsible for implementing and achieving society’s goals – Interacts closely.
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Chapter 11 Politics and the Economy Module 47 Power and Authority • Political system: social institution responsible for implementing and achieving society’s goals – Interacts closely with economic system: social institution thorough which goods and services are produced, distributed, and consumed – Politics: “who gets what, when, and how” (Lasswell) Module 47 Power █ Power: ability to exercise one’s will over others (Weber) • Sources of power in political systems – Force: actual or threatened use of coercion to impose one’s political dissidents – Influence: exercise of power through process of persuasion – Authority: institutionalized power recognized by the people over whom it is exercised Module 47 Types of Authority • Three ideal types of authority (Weber) – Traditional authority: legitimate power conferred by custom and accepted practice – Rational-legal authority: power made legitimate by law – Charismatic authority: power made legitimate by leader’s exceptional personal or emotional appeal to his or her followers Module 47 Types of Government █ █ Monarchy: Form of government headed by a single member of a royal family Oligarchy: Form of government in which a few individuals rule Module 47 Types of Government █ Dictatorship and Totalitarianism – Authoritarianism (Dictatorship): Government in which one person has nearly total power to make and enforce laws – Totalitarianism: Involves virtually complete government control and surveillance over all aspects of a society’s social and political life Module 47 Types of Government █ Democracy – Government by the people – Representative democracy: Elected members of legislatures make laws – Direct democracy: direct participation by all citizens Module 47 War and Peace █ War: Conflict between organizations that possess trained combat forces equipped with deadly weapons Legal definition typically requires formal declaration of hostilities Module 47 War █ █ █ Global view studies how and why nations become engaged in military conflict Nation-state view stresses interaction of internal political, socioeconomic, and cultural forces Micro view focuses on social impact of war on individuals and their groups Module 47 Peace █ Peace: Absence of war and proactive effort to develop cooperative relations among nations – Global Peace Index: U.S. ranked 97 on list of 121 nations – Since 1990s, 90% of armed conflicts occurred within states Module 49 Economic Systems █ Industrial society: Society that depends on mechanization to produce its goods and services – Capitalism – Socialism The Industrial Revolution • Brought five changes to the economy – New sources of energy – Centralization of work in factories – Manufacturing and mass production – Specialization – Wage labor • New laws banned child labor, set minimum wage levels, improved workplace safety, and extended schooling and political rights to a large segment of the population The Information Revolution and Postindustrial Society • Postindustrial Economy – A productive system based on service work and high technology • Driving economic change: third technological breakthrough – Computer – Three important changes • From tangible products to ideas • From mechanical skills to literacy skills • From factories to almost anywhere Sectors of the Economy • Primary Sector – The part of the economy that draws raw materials from the natural environment • Secondary Sector – The part of the economy that transforms raw materials into manufactured goods • Tertiary Sector – The part of the economy that involves services rather than goods Capitalism • Four distinctive features: – Private ownership of the means of production – Pursuit of personal profit – Competition – Lack of government intervention (Laissez-faire) Socialism • Three distinctive features: – Public ownership of the means of production. – Pursuit of collective goals. – Centralized decision-making. Module 49 The Informal Economy █ Informal economy: Transfer of money, goods, or services is not reported to the government – Difficult to measure In developing nations, informal economy represents 40% to 60% of total economic activity Conglomerates and Corporate Linkages • Conglomerate – Giant corporations composed of smaller corporations – Form as • Corporations enter new markets • New companies spin off • Mergers • Conglomerates are linked because they own each other’s stock • Corporations are linked through – Interlocking directorates • Networks of people who serve as directors of many corporations • Linkages encourage illegal activity – Price-fixing • Companies share information about their pricing policies General Motors Board - Interlocking Directorates Interlocking Directorates Interlocking Directorates Interlocking Directorates Corporations: Are They Competitive? • Monopoly – The domination of a market by a single producer – Forbidden by federal law • Oligopoly – The domination of a market by a few producers – Legal and common • Federal government regulates to protect the public interest – Often too little, too late, resulting in harm to millions Corporations and the Global Economy • Corporations now account for most of the planet’s economic output • Biggest are based in U.S., Japan, and Western Europe – Their marketplace is the entire world • Know that poor countries contain most of the world’s people and resources – Modernization theory – raises living standards – Dependency theorists – increase inequality Module 50 The Changing Face of the Workforce • U.S. workforce is constantly changing – Sociologists and labor specialists foresee workforce increasingly composed of women and racial and ethnic minorities • 54% of new workers expected to be women from 1984 to 2014 – More diverse workforce means relationships between workers more likely to cross gender, racial, and ethnic lines Module 50 Deindustrialization • Deindustrialization: systematic, widespread withdrawal of investment in basic aspects of productivity – Can take the form of corporate restructuring – Downsizing: reductions in a company’s workforce as part of deindustrialization – Social costs cannot be overemphasized © 2013 Pearson Education, Inc. All rights reserved. The Globalization of Capitalism • A New Global Structure and the Global Oppression of Workers • Stagnant Paychecks – Trends in Leisure – Telecommuting • The New Economic System and the Old Divisions of Wealth © 2013 Pearson Education, Inc. All rights reserved. The Globalization of Capitalism – High insecurity with layoffs, plant closings, and the prospect of more of the same – Half of the entire country’s income goes to the richest fifth of Americans – Only 3 percent goes to the poorest fifth • The Global Superclass © 2013 Pearson Education, Inc. All rights reserved. The Inverted Income Pyramid: The Proportion of Income Received by Each Fifth of the U.S. Population © 2013 Pearson Education, Inc. All rights reserved.