Political Systems and
Economic Systems
Thanks Mr. DeLoughry
World Geography
Eisenhower Middle School
Political Systems
• Countries can have a
•
variety of political
systems.
They include:
 Direct Democracy
 Representative
Government
 Monarchy
 Dictatorship
Direct Democracy
• Sometimes called “pure
democracy”
• People gathered to vote
on laws in ancient
Athens and Rome.
• Very difficult to do in
large numbers. People
may not know much
about the issues they
vote on.
• States and towns in the
U.S. use ballot
questions to get the
public’s vote on
important issues.
Representative Government
• Often called a
•
•
•
“republic.”
The people elect
representatives to make
the laws.
Citizens must pay
attention to vote
smartly, but do not need
to be experts on every
law.
Examples are U.S,
Canada, Mexico, United
U.S. House of Representatives
Monarchy
• Ruler inherits the throne
by birth.
• Citizens do not have a
right to decide laws.
• Fewer monarchies in
the last 100 years.
Jordan, Kuwait, and
Saudi Arabia are
examples.
• Others, such as United
Kingdom, Norway,
Sweden, and Japan,
are now democracies
with monarch as
ceremonial leader.
Jordan’s King Abdullah
Dictatorship
• One person or one party
•
•
Iraq’s Former Dictator
Saddam Hussein
•
holds total power to
govern.
Citizens have few rights
and don’t make
decisions.
Dictators sometimes call
themselves “president”
and hold elections, but it
is just for show because
no one else is allowed to
run.
Examples: Cuba, North
How do dictators keep power?
• Dictators can use their
armies to arrest or
attack protesters.
• Dictators often promise
a better life, especially
for the poor.
• Many countries have
never had democracy,
so they are used to
having dictators.
• Some dictators get
support from other
countries, such as
Soviet Union’s support
for Fidel Castro in Cuba.
Fidel Castro of Cuba
What is economics?
• The study of how
•
•
goods and services
are produced,
distributed, and
consumed.
The people who make
goods or services are
called “producers.”
The people who buy
goods or services are
called “consumers.”
3 Different Economic Systems
1. Traditional
2. Free Enterprise
3. Command
Traditional Economy
• People find food for
•
•
themselves and trade
for needed goods.
No companies or
governments involved
This system is found
among herders or
small farmers
Free Enterprise
• Sometimes called
“capitalism” or “market
economy.” Ex. U.S.A.
• People own companies
and decide what to
produce to make
consumers happy.
• Business owners can
earn big profits or can
lose their money if a
business fails.
• Some businesses sell
stock to get more
capital to invest.
New York Stock Exchange
Command Economy
• The government
•
Workers arrive at a factory in
the old Soviet Union in 1929.
makes economic
decisions about what
should be produced,
how much it should
cost.
Two types of
command economies
are socialism and
communism.
Command Economies
• In socialism, the
•
Venezuela’s President
Hugo Chavez
government runs some
industries, such as oil,
and uses profits to pay for
health care, education.
Ex. Venezuela
In communism, the
government runs all
industries, owns all
property, sets wages, and
prices, and people must
do as they are told. Ex.
North Korea
Communism vs. Capitalism
• Capitalists say that people
•
have no reason to do a good
job in communism because
everyone gets the same
pay. Products are boring
and poorly made.
Communists say that
capitalism is unfair to the
poor because people at the
top of the company get rich
while workers get low
wages. They also say
capitalists wipe out little
companies and destroy the
Communism vs. Capitalism
• The Cold War from 1945-
•
•
1991 between U.S. and
Soviet Union was based
on getting nations to line
up on the communist side
or capitalist side.
Today Russia allows
some capitalism.
Communist China also
allows some capitalism.
Factory workers in China
Putting Politics & Economics
Together
• Communist countries have been dictatorships in
•
•
which leaders have tried to control all aspects of
the country.
But not all dictators are Communists. Some want
capitalist companies to come in and create jobs
Ex. Batista in Cuba before Castro.
Democracies are sometimes capitalist and
sometimes socialist. Voters may elect a leader
who promises to help the poor through socialism.
Or voters may prefer capitalism as a way to
create more jobs.