Political Systemsand Their Impact on

Technology and Engineering

What is America’s System?

Republic

Governed by LAWS which are decided upon by representation of the people

using the democratic process.

For the most part, people are free to develop new technologies if they have the resources to do so and if the technologies are legal.

This is called Free Enterprise!

Many individuals consider technology to be neutral and apolitical, and that it develops out of a rational response to the needs of society.

– Jonathan Scanlan

For what reason do private individuals and companies develop new technologies?

1) For financial gain (money)2) For political gain (power)

For what reason to private individuals and companies develop new technologies?

1) For financial gain (money)2) For political gain (power)

For what reason to private individuals and companies develop new technologies?

1) For financial gain (money)2) For political gain (power)

http://blogcritics.org/scitech/article/capitalism-and-technological-advancement/

This is Capitalism.The United States has historically

been a capitalist society.What does that mean to us?

People are free to develop new technologies to gain wealth, help society or gain power.

What are the problems with capitalism?

• For a company to stay in business, the company must make a slightly inferior product so that you will keep buying more

• Monopolies - Companies can create a monopoly in an industry which is not fair to other companies or the consumer

• Oligopoly - The wealthy can control industry by the power of their wealth (Robber Barons of the late 1800s)

If a company makes things that satisfy the end-user, the user won’t need to buy another one…

…and the company ends up going out of business.

The technology exists to make things that last longer …

1) For political gain (power)

…but companies make more money if you have to buy new things

Companies need to make new things OR better things to keep the money flowing out of your wallet.

1) For political gain (power)

So how do companies keep your money flowing?

1) They find out what you want2) They find out how much you will pay3) They give you just enough to keep you coming

back for more (phones and constant upgrades)4) They make “parts” that you constantly need5) They make things disposable so you will have to

purchase a new one

http://blogcritics.org/scitech/article/capitalism-and-technological-advancement/

Monopolies

• A company that controls an industry.

• A monopoly lacks real economic competition and can charge high prices for their goods or services

• Antitrust laws keep this type of market condition from existing.

• http://examples.yourdictionary.com/oligopoly-examples.html

Oligopoly• An oligopoly is a

small group of businesses, two or more, that control the market for a certain product or service. This gives these businesses huge influence over price and other aspects of the market.

Examples of an oligopoly are:

• Steel industry• Aluminum• Film• Television• Cell phone• Gas• Kellogg's, General Mills, Post and Quaker

Capitalism• Economic system in which the factors of production are

privately owned and money is invested in business ventures to make a profit

• Replaced feudal empires (i.e. Holy Roman Empire) and monarchies

• Created markets where buyers and sellers of goods and services agreed on prices

• Created market types:– Competition – Companies compete for market share– Monopoly – one company has cornered the market on an

industry– Oligopoly – the wealthy are running things

• Long distance trade increased dramatically due to innovation in transportation

Capitalism cont.• Individuals and businesses own property and the

mean of production.• Progress results when individuals follow their own

self interest.• Businesses follow their own self interest by

competing for the consumer’s money. Each business tried to produce goods or services that are better and less expensive then those of competitors.

• Government should not interfere in the economy because competition create efficiency in business.

• Created by: Erika Arellano

What’s the difference between capitalism and socialism?

Socialism

• Socialists believe that a well-ordered society cannot exist without a state apparatus, not least because the state is seen as the most effective vehicle for coordinating and administering to the needs of all.

• Socialists believe that people act selfishly and competitively because that is what they are taught under capitalism.

Re• http://science.jrank.org/pages/8088/Socialism.html#ixzz23vRnD9Md

So what’s the difference?

• “Democracy and socialism have nothing in common but one word, equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.” -- French historian and political theorist Alexis de Tocqueville

Paradigm

• A belief that has almost become religious in its intensity.

• Examples would be: The earth-is-round paradigmCapitalistic America paradigm

Paradigm Shift

• America needs the government to “save us!”• We are getting huge government• Who is going to pay for this huge government?• What will happen when the government can’t

pay to “save us” anymore?

Government

Balanced System

Middle Class and Medium-sized Business

Lower ClassAnd Small Business

Upper Class and Fortune 100 Businesses

Reasonable • Taxes• Expenses• Expectations

Government size 2X

Unbalanced System

Middle Class and Medium-sized Business

Lower ClassAnd Small Business (is gone with jobs)

Upper Class and Fortune 100 Businesses BAIL OUTS!!!!!!

Unreasonable • Taxes• Expenses• Expectations

In Summary:

• Capitalism has positive and negative components• Technology grows in a free society because the

market rewards the developer• Socialism hurts business and technological

developments because the developer is not rewarded

• America is experiencing a shift in our political/social climate that could impact the future of our culture