–3. Relationship between legislative and
exec. Branches.
• a. Presidential: 2 branches are both chosen by
voters – considered separate and equal.
• b. Parliamentary: legislators chosen by voters –
Executive (Prime Minister) chosen by
legislature who can replace him at will.
• B. Characteristics of Democracy
– 1. Individual Liberty: individual worth and dignity.
• Equality of opportunity
– 2. Majority rule with Minority Rights
• Need for compromise
– 3. Free and open elections: secret voting, not coerced
• Every vote counts the same, universal suffrage/part.
– 4. Competing political parties: give voters choice
• Political party: group of individuals w/ common interests who
organize to win elections.
– 5. Gov’t must be responsive to wishes of people
expressed by their vote.
• C. The Soil of Democracy: Democracy
requires:
–1. A favorable economy w/ large middle
class and freedom to make economic
decisions.
–2. Widespread education and high degree
of literacy.
–3. A Social Consensus: People share same
values and ideals.
Sec.4: Gov’t and Economic Systems
• A. Economics: study of human efforts to
satisfy unlimited wants through the use
of limited resources – Econ. Systems &
political systems go hand in hand (polling
place v. market place).
–1. All econ. Systems must answer 3 ?’s.
• a. What & how much is to be produced w/
limited factors of production?
–Land & natural resources
–Labor – Human resources
–Capital – money, factories, machines
–Management – decision makers
• b. How are goods to be produced?
• c. Who gets the goods produced?
• B. Major Economic Systems
– 1. Capitalism: Market System, Free Enterprise –
means of production and answers to basic
questions left to the people.
• a. Characteristics of capitalism
– 1. Private ownership of property and resources
– 2. Free enterprise – individual choice
– 3. Competition
– 4. Profit motive
• b. Origins of capitalism
– 1. Adam Smith’s – The Wealth of Nations, 1776
– 2. Laissez – faire economics – gov’t should not involve itself
in economic decisions: Decisions determined by supply and
demand.
• c. Free enterprise in U.S.
• 1. Mixed Economy: government gets involved
by:
–a. protecting private property
–b. providing services
–c. acts as consumer and employer
–d. ensures competition
–e. regulates businesses to protect society: sets
health & safety standards.
–f. regulates foreign competition
–g. provides welfare services to the unsuccessful.
– 2. Socialism
• a. Gov’t owns the basic means of production
determines the use of resources, distributes the
products – wages and provides social services
• b. 3 main goals
– 1. distribution of wealth and economic opportunity equally
among people
– 2. gov’t makes all decisions and production
– 3. public ownership of most land, of factories and other
means of production
• c. It developed as means to narrow rich/poor gap.
• d. Dem. Socialism: ppl have basic rights and have
some control of gov’t officials through elections but
cent. Planning by gov’t nationalization of resources is
essential.
• -believe in peaceful change.
– 3. Communism: Command Economy
– a. Gov’t makes all econ decisions, own all means
of production
– b. origins, Karl Marx, Comm. Manifesto (1848)
• 1. History of class struggle (world has 2 classes)
– Bourgeoisie (owners) v. Proletariot (workers)
– Owners grow rich from workers (poor wages) Workers will
unite and overthrow.
• 2. Gov’t/state was the tool of the owners: can only be
altered through bloody revolution.
• 3. At first there is a temp. dictatorship, but would
wither away to create a classless society (complete
equality)
• c. Russia (Lenin) first to put into action,
Bolshevik Revolution (1917) against Czar
Nicholas II.
• d. Fallacies of Communism in Practice
–1. In modern communism, gov’ts don’t wither
away, Comm. Party becomes like old Bourgeoisie.
–2. In capitalism, owners – workers have not had to
resort to conflict to settle differences.
–3. In communism, there is no individual incentive
or initiative (no profit motive) nor competition to
make best product.