Download Chapter 14

Chapter 14
Political and
Economic
Institutions
Chapter Outline
Using the Sociological Imagination
 Power and Authority
 The Nation-State
 Political Systems
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Chapter Outline
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Political Power in American Society
Economic Systems
The Corporation
Work in the Contemporary Economy
Power and Authority
Power is the ability to impose one’s
will on others whether or not they
wish to comply.
 Authority is power accepted as
legitimate by those subjected to it.
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Three Forms of Authority
Charismatic - inherently unstable
 Traditional authority - too outdated
to serve as the basis of power for
modern nation-states.
 Rational-legal - the authority of
most nation-states today.
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Nation-state: Characteristics
Absolute sovereignty it has over its
citizens.
 Citizens can appeal no higher than
the laws of the state.
 Devotion to nationalism.
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Political Systems
Democracy - representative with
minimal citizen involvement in
political affairs.
 Totalitarianism - absolute rulers
control all aspects of social life
 Authoritarianism - nonelected rulers
with absolute control who frequently
permit some individual freedom.
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Assumptions in a
Representative Democracy
Not everyone in modern society can
be actively involved in all political
decision making.
 Politicians who fail to satisfy the
wishes of the majority will not be
elected (or reelected).

Confidence in Executive and
Legislative Branches
Growth in the Number of
PACs: 1974–2000
Characteristics of Two
Models of Political Power
Pluralist
Who
Bargaining and
exercises compromising
Power? interest groups
Power Elite
National
political,
economic, and
military leaders
What is
Resources of Leaders in major
source of
interest groups
institutions
power?
Characteristics of Two
Models of Political Power
Pluralist
Where is
power
located?
Do nonelites
have much
influence?
Power Elite
Concentrated
Spread among
in hands of
interest groups
elites
Considerable
influence on
public policy
Very little
influence on
public policy
Characteristics of Two
Models of Political Power
Pluralist
What is the
basis for
public policy
decisions?
Power Elite
Goals and
Preferences
values are
of the elites
shared by the
general public
Changes in U.S. Labor Force
by Occupational Category
Capitalist Economies
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Based on:
 Private property
 The pursuit of profit without
government interference.
Socialist Economies
The means of production are owned
by the people.
 Government has active role in
planning and controlling the
economy.

Individualistic capitalism
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Foundational principles:
 Self-interest
 Free market
 Profit maximization
 Highest return possible on
stockholder investment
Occupational Structure:
Two Tiers
1.
Core tier
 Computer technology,
pharmaceutical, and aerospace
firms.
 Between 30 and 40% of U.S.
workers are in the core tier.
Occupational Structure: Two
Tiers
2.
Peripheral tier
 Industries such as agriculture,
textiles, and small-scale retail
trade.
 60 to 70% are employed in the
peripheral tier.
Downsizing
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Since 1985, over 8 million employees
were downsized.
In 2001, corporate layoffs increased
nearly 40% over the previous year.
Causes:
 Collapse of the stock market
 Economic downturn
 Exposure of CEO scandals
 9/11 terrorist attack