Wednesday, April 24, 2013

chapter 13 The economy and politics



                The economy and politics control the present and future of a society. Even though each has power over individuals they both depend in each other. This can be seen in the economic system and the legitimacy of power a government possesses. There are different economies and the American capitalism is a result of multiple mixtures between socialism and capitalism with a strong base of capitalism. Politics are not so different there is a variety of governments and the USA has an interesting system of democracy with multiple rules.
                The economic institution is the way that a society governs the production of goods. The factors of production are the resources needed to manufacture the products. There are three sectors of the economic system the primary is the raw materials, secondary manufactures products, and tertiary provides services. The other way to see it is preindustrial where the economy is based on the extraction of resources or agriculture. Industrial were the economy buys the product of preindustrial economies to create products.  Postindustrial is a society that sales information or are based on e companies. Power is the ability to control others. Authority is normally is where people follow because they followed their status before. Rational-legal authority is power vested by the government. Charismatic authority is power given to those based on how much a group agrees with the individual. Coercion is illegitimate power because the law does not allow it and people do not agree with them.
                                       
                Capitalism is where individuals control the production instead of the government. The why the economy is regulated by supply were people make more because they can charge more and demand were people buy more when the price decreases. The French call free-enterprise laissez-faire capitalism because the government barely gets involved. In socialism the government controls the production. Communism is normal is socialism that can lead to totalitarianism were power is exercised over citizen. The American economy is mostly capitalist were corporations are owned by few and they are protected in the USA and are multinational and have e-comers.
                There are three types of government democracy were the people have a say, monarchy that is where an individual has the power un less there is a constitution in which the people have a say and the monarch approves, and authoritarian in which were the state has the power as dictatorship, junta, or absolute monarchy. In the USA there is democracy but individual companies have power over certain candidates.
                In the current ways of government and economy it is easy to see that the problem is the free enterprise. There should be regulations on profit to ensure companies do not have the ability to control or over through governments. The fact that pure capitalist and socialist economies do not exist shows that a balance most be found between democracy and free enterprise that persuade individuals with the propaganda that they are able to give to the individuals who will do their bidding corrupting laws and more.   

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