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Transcript
Governments and Economies of the World Political Systems Dictatorship Control of the government: One person / a small group Voting: None Very little freedoms and choices No free speech, free media, freedom of religion, etc. Examples: Iran, Vietnam, China, Cuba Totalitarianism Extreme form of dictatorship Government has total control of your life Examples: (Fascism & Nazism; Hitler, Stalin, North Korea) Democracy Control: Citizens control the government through voting and serving in the government Voting: Free elections, open participation Referred to as a “Western-style government” Two types: Direct Democracy: The people make all of the actual decisions Examples: Ancient Greece (Athens), No modern national examples Indirect Democracy: The people elect others to make the decisions Examples: US, Western Europe…most countries in world Monarchy Control: Monarch (king or queen) maintains power Power kept within the family Two types: Constitutional Monarchy: Monarch has limited power; shares power with an elected body: Parliament Democratic government Examples: UK, Spain, Netherlands, Nepal, Japan Absolute Monarchy: no citizen control; Monarch holds all the power “Dictatorship” Example: Saudi Arabia, Brunei, Oman Economic Systems Capitalism Prices are set by the market Supply and Demand determines market decisions Wages, prices, what to sell, popular vs. unpopular goods/services, etc. Also known as: Market Economy, Free-Market, Free Enterprise Works with: Democracy $$$$$ Price $$$$ Equilibrium $$$ $$ $ # ## Quantity of goods ### #### $$$$$ Price $$$$ $$$ $$ Demand increases $ # ## Quantity of goods ### #### $$$$$ Price $$$$ $$$ Supply drops $$ $ # ## Quantity of goods ### #### Communism Created to be an ‘solution’ to capitalism: Capitalism creates unfairness in society Solution: Government owns all business, means of production Prices are set by the central government Goal: Make everyone equal Government makes all market decisions Owners don’t ‘do’ anything and make lots of money Workers do all the work and make a lot less Government determines what is made/sold, prices, wages, jobs, etc. so everyone is ‘equal’ No private business allowed; no classes Prices are kept artificially low so everyone in society can afford goods Leads to shortages, corruption, etc. Est. by Karl Marx’s Communist Manifesto (1848) Also known as: Command Economy Only works with: Fully socialized countries Followers: Communists, Marxists Countries: USSR, China, Vietnam, Laos, N. Korea, Cuba Communism must have Socialism to work Socialism does not need to have Communism Socialism Government’s goal is to reduce the extremes of inequality The ‘people’ (government) owns major sectors of the economy. Gov’t makes decisions for society to keep everyone equal (Big Brother) ie: Major manufacturing/industry, public services (transportation, water, power, etc) Private ownership is banned (makes you unequal) Provides most services for people so everyone has them Different ‘levels’ of socialism Entire government is socialized Usually Communist Usually a dictatorship China, Cuba, USSR Some systems in non-socialist gov’ts can be ‘socialized’ Communism Capitalism Things common to both Communism and Capitalism Things common to both Communism and Socialism Things common to both Capitalism and Democracy Things common to both Socialism and Democracy Socialism Democracy Communism Capitalism Things common to both Communism and Capitalism •--- •-- •-- Things common to both Communism and Socialism Things common to both Capitalism and Democracy •-- •-- •-- •-•-- Things common to both Socialism and Democracy Socialism Democracy Economic Terms Currency Arabic Countries Australia China Europe India Japan Dinar Dollar Renminbi Euro Rupee Yen $ ¥ € Rp Mexico Peso $ or Mex$ UK US Pound Dollar ₤ $ ¥ Recession A minor/short-term slow-down of the economy Caused by inflation, drop in stock market, high unemployment, outside shock (war, spike in price of oil, etc.) Depression A severe or long-term slow-down of the economy Can take years to recover Inflation When the price of goods increase Causes Measured by comparing what a set number of products cost over time. Drop in supply of major goods Too much currency in the system Effects People cannot afford what they used to Unemployment increases Economic recession or depression Value of currency plummets Savings and currency lose value US = -1.48% Measuring & Comparing Economies GNP (Gross National Product) Total value of goods produced by a nation both inside and outside the country (by companies who are based there) US gets all credit for all US-based companies, despite where the stuff is actually made Used to indicate the overall wealth of a nation GDP (Gross Domestic Product) Total value produced inside a country (by any company producing items in that country) US gets credit for all stuff made in US, despite where it’s based Used to indicate the productivity of a nation GDP per capita : Total GDP ÷ population Used to compare countries fairly; ‘evens’ out population Example: Bottling plants in US, Mexico, France and India US GNP counts… All of the Coca-Cola produced worldwide US GDP counts… All of the Coca-Cola produced in US France’s GDP counts… All of the Coke produced in France Other ways to economically compare nations: Industrialization Infrastructure Literacy rate Telecommunications Workforce usage Poverty line/unemployment rate You can tell how well off a country is by what these categories look like for the country GNP (World’s Top 10; 2007) 1 2 3 4 5 6 7 8 9 10 World $52,621,403,000,000 United States Japan Germany China United Kingdom France Italy Spain Canada Brazil $13,886,000,000,000 $4,813,341,000,000 $3,197,029,000,000 $3,120,891,000,000 $2,608,513,000,000 $2,447,090,000,000 $1,991,284,000,000 $1,321,756,000,000 $1,300,025,000,000 $1,133,030,000,000 GDP (World’s Top 10; 2007) 1 2 3 4 5 6 7 8 9 10 World $54,311,608,000,000 European Union United States Japan Germany China United Kingdom France Italy Spain Canada $16,830,100,000,000 $13,843,825,000,000 $4,383,762,000,000 $3,322,147,000,000 $3,250,827,000,000 $2,772,570,000,000 $2,560,255,000,000 $2,104,666,000,000 $1,438,959,000,000 $1,432,140,000,000 GDP Per Capita (Top 15; 2007) 1 Luxembourg $104,673 9 Finland $46,602 2 Norway $83,922 10 Netherlands $46,261 3 Qatar $72,849 11 United States $45,845 4 Iceland $63,830 12 $45,575 5 Ireland $59,924 13 Austria $45,181 6 Switzerland $58,084 14 Canada $43,485 7 Denmark $57,261 15 Australia $43,312 8 Sweden $49,655 United Kingdom GDP Per Capita (Bottom 10) 170 Sierra Leone $ 290 171 Eritrea $ 281 172 Malawi $ 264 173 Ethiopia $ 252 174 Myanmar $ 235 175 Guinea-Bissau $ 206 176 Liberia $ 195 177 Congo, (DRC) $ 166 178 Burundi $ 128 179 Zimbabwe $ 55 Communism Capitalism Things common to both Communism and Capitalism Get rid of classes Economic systems Prices set by market Needs Socialist gov’t Supply and Demand Never works practically Works with Democracy ‘Solution’ to Capitalism Free Enterprise Gov’t runs the market Things common to both Communism and Socialism Things common to both Capitalism and Democracy Goal = equality Goal = freedom Private business banned Works together Corruption People run everything Paid for through taxes Private business allowed Citizens vote for gov’t Often a dictatorship Provides services to people Political Systems “Western style gov’t” Gov’t makes decisions Don’t need Communism Free elections Works with Communism Direct vs. Indirect Things common to both Socialism and Democracy Socialism Democracy Communism Capitalism Things common to both Communism and Capitalism Gov’t runs economy People forced to stay Doesn’t work on lg scale Karl Marx Limited freedoms Works w/ Socialism Economic systems Things common to both Communism and Socialism Things common to both Capitalism and Democracy Work together Free choices Classes allowed People run it all Goal is equality Don’t need Communism Provides services to people Gov’t pays for stuff Higher taxes to pay for stuff Private business Supply and Demand Market/businesses makes decisions Freedom of choices Creates classes Works w/ demc’y Political systems Voting for gov’t People run the gov’t Direct vs. Indirect Don’t need Communism Things common to both Socialism and Democracy Socialism Democracy Communism Capitalism Things common to both Communism and Capitalism Karl Marx ‘Solution’ to Capitalism No private business Gov’t controls economy Needs Socialism to work Usually needs dictator Economic systems Need taxes Things common to both Communism and Socialism Things common to both Capitalism and Democracy People power Goal is to make everyone equal Gov’t owns everything (no private) Gov’t decides everything Systems are nationalized No private ownership of prop. Taxes pay for everything Free Market Private ownership People decide everything Supply and Demand Free choice - economically Political systems People decide – voting Citizen control gov’t Free elections Direct vs. Indirect Power is spread out “Western Style Gov’t” Things common to both Socialism and Democracy Socialism Democracy Communism Capitalism Things common to both Communism and Capitalism Gov’t owns business Gov’t controls economy Impractical in large scale No private business Gov’t decides everything ‘Solution’ to capitalism Forced to stay in country Economic Systems Things common to both Communism and Socialism Things common to both Capitalism and Democracy Free choices People decide stuff Less gov’t control Free to leave Goal is equality Not as forceful Gov’t owns property Gov’t provides everything Gov’t decides everything politically 100% = dicatorship Taxes pay for everything Market decides things Supply and Demand Works with Democracy Private businesses!!!!! “Free Market” Taxes finance things Political systems Free voting/elections Citizens control gov’t More rights People have a say Direct vs. Indirect “Western Style Gov’t” Most used type of gov’t Things common to both Socialism and Democracy Socialism Democracy