Chapter 14

Politics and the Economy

Chapter Outline

Political and Economic Institutions Power and Political Institutions Power and the State Individual Participation in U.S. Government Modern Economic Systems The U.S. Economic System Work in the United States

Two Kinds of Power

1. Coercion is power based on fear by using force and intimidation.

2. Authority is power based on socially accepted norms that maintain the right of some authority to wield power.

Three Types of Authority

1. Traditional authority is rooted in established roles, like father, elder, or king.

2. Charismatic authority arises from the exceptional personality that may sway and inspire others.

3. Rational-legal authority is based on formal regulations and laws.

Power

Concept Example “mowing the lawn”

Power “I know you don’t want to mow the lawn, but do it anyway.”

Coercion “Do it or else.”

Authority “It is your duty to mow the lawn.”

Power

Concept Example “mowing the lawn”

Traditional Authority

“I’m your father, and I told you to mow the lawn.”

Charismatic

authority

“I know you’ve been wondering how you might serve me, . . .

Rational-legal

authority

“It is your turn to mow the lawn; I did it last week.”

Perceptions of Government Responsibilities: % Who Agree with the Statement:

Comparison of Three Models of American Political Power

Basic units of analysis

Pluralist Interest Groups

Power-Elite Power elites

State Autonomy Government bureaucracy

Comparison of Three Models of American Political Power

Source of power

Pluralist Situational; depends on issue

Power-Elite Inherited and positional; top positions in key economic and social institutions

State Autonomy Control of personnel and budget of government

Comparison of Three Models of American Political Power

Distribution of power

Pluralist Dispersed among competing diverse groups

Power-Elite Concentrated in relatively homogeneous elite

State Autonomy Held by bureaucrats

Comparison of Three Models of American Political Power

Limits of power

Pluralist Limited by shifting and crosscutting loyalties

Power-Elite Potentially limited when other groups can unite in opposition

State Autonomy Limited if elite is unified

Comparison of Three Models of American Political Power

Role of the State

Pluralist Arena where interest groups compete

Power-Elite One of several sources of power

State Autonomy A major source of power

 Characteristics of The State

Jurisdiction - includes policing, armed forces, taxation, conflict resolution, relationships with other states, and resources for collective goals.

 Coercion - monopolizing the use of physical force through police powers, taxation, and the maintenance of armed forces.

Participation in the 2000 Election

Education%

Registered% Who Voted

8 years or less 36 27

Some high school 46 34

High school graduate

60 49

Some college 70 60

College graduate or more

77 72

Participation in the 2000 Election

Race/Ethnicity%

Registered% Who Voted

White 66 56

African American 64 54

Hispanic 35 28

Participation in the 2000 Election

Age%

Registered% Who Voted

18–20 41 28

21–24 49 35

25–34 55 44

35–44 64 55

45–64 71 64

65 769 68

% Voting Democrat or Republican in 1996 Presidential Election

Race/Ethnicity Democrat Republican

White 54 46

African American 99 1

% Voting Democrat or Republican in 1996 Presidential Election

Education Democrat Republican

Grade school 82 18

High school 60 40

College 49 51

% Voting Democrat or Republican in 1996 Presidential Election

Age Democrat Republican

18–37 58 42

38–53 58 42

54–69 56 44

70-85 64 36

86 and over 57 43

Social Factors and Political Participation

1. Social class - those who benefit most are most inclined to get involved in politics.

2. Age - 50% of U.S. voters are over 45 y.o.

3. Race and ethnicity - African-Americans are more inclined to political participation than in the past.

Social Factors and Political Participation

4. Differentials in office holding - about 1% of federal legislators are African-Americans and only 8 are women.

5. Party affiliation - Republicans have traditionally represented business while Democrats have been more supportive of the interests of workers and the disadvantaged.

Why Doesn’t the United States Have a Worker’s Party?

U.S. standard of living is sufficiently luxurious to lull many people into complacency.

American dream continues to influence people to think of individualistic over common goals.

 Capitalism

Private ownership of the means of production - land, capital, and the labor of workers.

Encourages hard work and innovation toward maximizing competitive advantage.

Does not attend to distribution and does not provide for the public good.

Socialism

The means of production is owned by the workers and distribution is for the public good.

Creed of pure socialism: from each according to ability, to each according to need.

The key drawback of socialism is the absence of personal economic incentive.

Changing Labor Force in theUnited States

Professions

Production of an unstandardized product.

High degree of personal involvement. Wide knowledge of a specialized skill. Sense of obligation to one's art. Sense of group identity. Significant service to society.

The Shifting Job Market: Projected Changes Between 2000 and 2010

The Downside of Technology

Deskilling of some jobs. Displacements of the work force as

some jobs vanish and new ones appear.

Big brother jitters and stress as computerized jobs also provide the means of constant worker monitoring by supervisors.

Using Public Policy to Protect U.S. Jobs

The conservative free market approach - proposes that the way to keep jobs in the U.S. is to reduce wages and benefits.

New industrial policies - government should restrict plant closings and support investments in local economies to provide more secure jobs.

Using Public Policy to Protect U.S. Jobs

Social welfare policies - helping people who are being thrown out of work through more generous unemployment benefits, paid leave for employees who are about to be laid off, and extensive job re-training programs.