American Government – Unit 1
Do Now: 
 Summarize the purpose of government. 
Do you think all people feel the same 
way about government?
Chapter 1
Essential Question
Foundations of Democracy 
 Democracy- a 
government in which 
citizens hold the 
power to rule 
 1 of the earliest was 
found in the Jewish 
religion 
 Judaism teaches 
that every person 
has worth and is 
equal before the law
 400s B.C., Greek city-state 
of Athens created the 1st 
democracy 
 All free men over 18- 
citizens 
 Take part in Athens assembly 
 Decisions carried out by a 
council of 500 members 
 Citizens took turn serving on 
the council 
 Direct Democracy- a form 
of democracy in which the 
people vote firsthand 
Athens
Representative Democracy 
 In places with large 
populations, direct 
democracy is not practical. 
 Representative 
democracy: a government 
in which citizens choose a 
small group to govern on 
their behalf 
 Republic- a 
representative democracy 
where citizens choose 
their lawmakers 
 509 B.C.- Romans overthrew 
their king 
 Government was put in the 
hands of the senate 
 Members chosen from 
Rome’s wealthy class, called 
patricians 
 Senators elected two 
members, consuls to lead 
government 
 Both had to agree 
 Ea. Consul had the power to 
block the actions of others by 
saying veto (“I forbid!”)
Persuasive speech-making was one of the key skills of a 
Roman senator. This painting shows a famous incident in 
which the consul Cicero (left) accuses a politician named 
Catiline (extreme right) of being a traitor.
Origins of Government 
 Aristotle- a scholar 
in Ancient Greece, 
one of the first 
students of 
government [polis]. 
 Politics, 
democracy, and 
republic- originated 
in ancient Greece & 
Rome.
Review- (Identifying) 
 What idea of government do we associate 
with the ancient Greeks? 
 Democracy 
 Discuss the pros and cons of direct 
democracy versus representative 
democracy. 
 Pros: everyone’s opinion can be heard; 
everyone’s interests can be considered 
 Cons: discussions can become time-consuming 
and frustrating; voters may be swayed by 
personality and rhetoric rather than accurate 
knowledge
Review- (Identifying) 
 What idea of government do we 
associate with the ancient Romans? 
 republic 
 What ancient form of government- 
Greek or Roman- does the United 
States most closely resemble? Why?. 
 Republic/Roman 
 It is governed by leaders who represent the 
people, rather than directly by the people 
themselves.
The State 
 Originally comes from the Latin word “to 
stand” 
 In the U.S.A means- a political 
community that occupies a definite 
territory and has an organized 
government with the power to make and 
enforce laws without the approval from 
any higher authority.
Essential Features of a 
State 
 4 features: 
 Population 
 Territory 
 Sovereignty 
 Government
Population 
 The nature of a state’s population affects 
its stability 
 States that share a general and political 
consensus have the most stable 
government 
 Mobility affects states too- millions of 
Americans move every year 
 This leads to political power shifting 
 Since the House of Representatives is 
based on population, the census can lead 
to state’s losing or gaining power.
Territory 
 States have established boundaries 
 i.e.- Continental boundaries: Atlantic/Pacific 
Oceans 
 Recognized Borders w/ Canada & Mexico 
 Through purchase, negotiation and war-the 
U.S. has gained more territory
Sovereignty 
 Political sovereignty- means that the 
state has supreme and absolute 
authority within its territorial boundaries 
 It has complete independence and 
complete power to make laws, shape 
foreign policy, & determine its own 
course of action 
 In theory no state has the right to 
interfere with the internal affairs of 
another
Government 
 The institution through which the state 
maintains social order, provides public 
services, and enforces decisions that 
are binding on all people living within the 
state
Theories of the Origin of 
State 
•Evolutionary 
Theory 
•Force Theory 
•Divine Right 
Theory 
•Social Contract 
Theory
The Purposes of 
Government 
1. Maintain social order 
2. Provide public services 
3. Provide for national security and public 
defense 
4. Provide for an control the economic 
ststem
Respect my Authority! 
 Decisions of government can be 
enforced upon ALL society 
 Derive their authority from their 
legitimacy and their ability to use 
coercive force 
 Legitimacy is based on the consent of 
the people 
 Coercive force derives from the police, 
judicial and military institutions of 
government
Maintaining Social Order 
 Through laws can resolve social conflict 
 Provides structure like courts to help 
resolve disagreements orderly 
 Places limits on what people can do 
 An effective government will allow 
citizens to plan for the future, get an 
education, raise a family and live orderly 
lives.
Providing Public Services 
 Providing essential services to make 
community life possible 
 Promoting public safety 
 i.e. Government inspectors of meat and food 
 State legislators passing laws that require 
driving tests 
 What other public services can you think 
of?
National Security 
 Protect against attacks from other 
countries or terrorist agencies 
 In a world with spy satellites, international 
terrorism, huge armies, computer hackers-this 
becomes a complex job 
 Also handles relationships with other 
countries and provides economic security 
by enacting trade agreements with other 
countries 
 States have the power to form agreements 
with other countries, however the federal 
government can limit that
Making Economic Decisions 
 Providing a national 
currency 
 Distributes benefits and 
public securities 
 Attempts to stimulate 
growth and stability via 
controlling inflation, 
encouraging trade and 
regulating the 
development of natural 
resources
Section 2
Essential Question:
Government Systems 
 Unitary 
 Federal
Constitutions and Government 
 A Constitution is a plan that provides the 
rules for government. 
 Major Purposes: 
1. It sets out ideals that the people bound by 
the constitution believe and share 
2. Establishes the basic structure of 
government and defines the governments 
powers and duties 
3. It provides the supreme law for the country
Constitutions 
 May be written or 
unwritten 
 U.S. is the oldest written 
[1787] still serving a 
nation today 
 Other key ones: France, 
Kenya, India, Italy and 
Switzerland 
 Great Britain, has an 
unwritten constitution 
based on hundreds of 
years of leg. Acts, court 
decisions and customs
Constitutional Government 
 All governments 
have a constitution 
in the sense that 
they have some 
plan for organizing 
an operating the 
Government. i.e. 
Republic of China 
 HOWEVER-constitutional 
government is a 
limited government, 
unlike the Republic 
of China
Incomplete Guides 
 Constitutions are incomplete for 2 
reasons: 
 No written constitution by itself can spell out 
laws, customs, and ideas that grow up 
around the document itself 
○ I.E.- FDR elected 4x, previous it was custom 
not law that limited to 2 terms- the 22 
Amendment changed this 
 A constitution does not always reflect the 
actual practice of a government in a country 
○ I.E.- China has a constitution with statements 
about basic rights, freedoms, & duties of 
citizens yet has a police force to spy on 
citizens and punish those with opposing views
A Statement of Goals- The 
Preamble
A Framework for 
Government 
 Main body of a 
constitution sets out 
a plan for 
government 
 U.S. describes 
relationship b/w 
national gov & state 
 Divided into articles 
and sections- U.S. 
has 7 articles/21 
sections 
 Constitution is the 
supreme law for 
states 
 Constitutional law 
primarily concerns 
the extent and limits 
of government 
power and the right 
of citizens
Politics 
 Effort to control or 
influence the 
conduct and 
policies of 
government 
 People take part in 
politics when 
joining citizens’ 
groups protesting 
higher taxes or 
when they meet 
with mayors about 
street repairs
Governing in the 20th 
Century 
 Industrialized Nations vs. Developing 
Nations 
 U.S. 
 Saharan Countries 
 Independence- means that nations must 
interact or depend on one another either 
economically or politically 
 1993- NAFTA- affects goods produced 
and sold b/w U.S., Canada & Mexico
Murky waters 
 U.S. depended on Middle East for oil 
supplies 
 1990- Pres. Bush sent troops to Saudi 
Arabia after Iraq invaded Kuwait 
 War threatened to break out and people 
feared an oil shortage in U.S. 
 U.S. & allies defeated Iraq in the Persian 
Gulf War but tensions continued 
 1996- 27 missile attacks against Iraqi 
President Saddam Hussein threatened oil 
producing countries
Nonstate International Groups 
 3 categories: 
1. Political 
movements such 
as national 
liberation 
movements 
2. Multinational 
corporations 
3. International 
organizations 
 PLO [Palestine 
Liberation 
Organization] 
 General Motors 
 Nabisco 
 Mitsubishi 
 Sony 
 United Nations
Section 3
Essential Question
Autocracy- 1 person 
 Totalitarian Dictatorship- ideas of a single 
leader or group of leaders are glorified. 
Government seeks to control aspects of 
social/economic life. 
 i.e. Hitler- Nazi Germany 
 Monarchy- a King, Queen, or Emperor 
exercises supreme powers of Gov. Usually 
inherit position [Absolute vs. Constitutional 
who shares gov. powers w/ elected legis. And 
serve in a ceremonial capacity] 
 i.e. Saudi Arabia & Great Britain
Oligarchy- Small Group 
 Small group holds power which derives 
from wealth, military, social position or a 
combination. Sometimes religion is 
source of power- 
 Oligarchies usually suppress all political 
opposition- sometimes ruthlessly 
 Communism I.E. China
 Review: 
 Authoritarian governments are 
undemocratic for all of the following reasons 
EXCEPT 
 A. 
Once elected, the leaders rule for life 
 B. 
Elections for political office are often fraudulent 
 C. 
Popular sovereignty and social contract are 
practiced 
 D. 
Popular sovereignty and social contract are not 
practiced
Democracy- Ruled by the 
People 
 Key idea- people hold sovereign power. 
 Pericles: “Our constitution is named a 
democracy because it is in the hands not of 
the few, but of the many” 
 Abraham Lincoln: “government of the 
people, by the people, and for the people”
Direct Democracy 
 people govern themselves by voting on 
issues individually as citizens- no 
country today does this 
 Exists only in small societies where 
citizens can actually meet regularly to 
discuss and decide key issues and 
problems
Representative Democracy 
 people elect representatives and give 
them the responsibility and power to 
make laws and conduct government 
 I.E.- [U.S]. 
 An assembly of the people’s 
representatives may be called a council, 
a legislature, a congress or a parliament
Republic 
 Voters hold sovereign power. 
 Elected representatives are responsible 
to the people exercise that power 
 Most American view representative 
democracy, republic and constitutional 
republic mean the same thing: a system 
of limited government where the people 
are the ultimate source of governmental 
power.
Characteristics of 
Democracy 
 Individual liberty- requires that all people 
be as free as possible to develop their 
own capacities 
 Government in a democracy works to 
promote the kind of equality in which all 
have equal opportunity 
 Government decisions be based on 
majority rule 
 Constitution helps ensure rights of the 
minority
Free Elections 
 Give people the chance to choose their leaders 
and voice their opinions on various issues 
 Everyone’s vote carries the same weight 
 All candidates have the right to express their 
views freely giving voters access to competing 
ideas 
 Citizens are free to help candidates or support 
issues 
 Legal requirements for voting [i.e.: age, 
residence, citizenship] are kept to a minimum 
 Citizens may vote freely by secret ballot without 
coercion or fear of punishment
Competing Political Parties 
 Rival parties help 
make elections 
meaningful 
 Give voters a choice 
among candidates 
 Help simplify and 
focus attention of 
key issues for voters
The Soil of Democracy 
 Active Citizen Participation 
 Serving as a juror, voting, informing 
themselves of the issues, work for 
candidates, run for government 
 Free Enterprise 
 Stable- better able to support democratic 
governments 
 People out of work or unable to feed families 
become more concerned about security than 
voting or political rights
The Seeds to Success 
 More likely to succeed 
with an educated public 
 Education is the great 
equalizer 
 Civil Society- a complex 
network of voluntary 
associations, economic 
groups, religious 
organizations, and many 
other kinds of groups 
that exist independently 
of government 
 Give citizens means to 
take responsibility for 
protecting their rights 
Widespread Education Civil Society
Social Consensus 
 General agreement about the purpose 
and limits of government
Section 4
Role of Economic Systems 
1. What and how much should be 
produced 
2. How goods and services should be 
produced 
3. Who gets the goods and services that 
are produced 
 Capitalism, Socialism, & Communism 
answer these differently
Capitalism 
1. private ownership and control of 
property and economic resources 
2. Free enterprise 
3. Competition among businesses 
4. Freedom of choice 
5. Possibility of profits
History of Capitalism 
 1776- Adam Smith, 
Scottish philosopher 
and economist wrote 
The Wealth of Nations 
 Concept of Laissez- 
Faire came about 
 Government role 
strictly limited to those 
few actions to ensure 
free competition
Governmental Influence 
 1900s- economy of the U.S. increased 
 Government has grown and became the 
single largest buyer of goods and services 
in the country 
 Regulated the economy for varying 
purposes 
 Meat Inspection Act and Pure Food and 
Drug Act 
 The Great Depression of the 1930s left 
millions without job- therefore Social 
Security and programs to aid unemployed 
sprung up
Mixed-Market Economies 
 Free enterprise + government decisions 
in market place = government keeps 
competition free and fair and protects 
the public interest
Socialism 
1. The distribution of wealth and economic 
opportunities equally among the people 
2. Society’s control through its 
government, of all major decisions 
about production 
3. Public ownership of most land, of 
factories, and of other means of 
production
Democratic Socialism 
 The people have basic human rights 
and have some control over government 
officials through free elections and 
multiparty systems BUT government 
owns the basic means of production and 
makes most economic decisions 
 Opponents claim socialism stifles 
individual initiative and high taxes hinder 
economic growth and leads to big 
government
Karl Marx 
 Karl Marx [1818-1883] German thinker, 
writer- a socialist who advocated violent 
revolution. Published the Communist 
Manifesto & Das Kapital 
 Believed that in industrial nations the 
population is divided into capitalists 
[bourgeoisie] and the workers [proletariat] 
 Capitalism is a ruling class because they 
use their economic power to force their will 
on the workers
Marx and Communism 
 Believed wages in a capitalist system 
would never rise above a subsistence 
level- just enough for workers to survive 
 Predicted class struggles 
 Promoted Communism- one class 
evolving, property all held in common 
and no need for government
Command Economy 
 Communist nations believe government 
planners decide how much to produce, 
what to produce and how to distribute 
the goods and services produced 
 Top-down management 
 State owns the land, natural resources, 
industry, banks and transportation 
facilities as well as mass 
communications

1[1].foundations of american government

  • 1.
  • 2.
    Do Now: Summarize the purpose of government. Do you think all people feel the same way about government?
  • 3.
  • 4.
  • 5.
    Foundations of Democracy  Democracy- a government in which citizens hold the power to rule  1 of the earliest was found in the Jewish religion  Judaism teaches that every person has worth and is equal before the law
  • 6.
     400s B.C.,Greek city-state of Athens created the 1st democracy  All free men over 18- citizens  Take part in Athens assembly  Decisions carried out by a council of 500 members  Citizens took turn serving on the council  Direct Democracy- a form of democracy in which the people vote firsthand Athens
  • 7.
    Representative Democracy In places with large populations, direct democracy is not practical.  Representative democracy: a government in which citizens choose a small group to govern on their behalf  Republic- a representative democracy where citizens choose their lawmakers  509 B.C.- Romans overthrew their king  Government was put in the hands of the senate  Members chosen from Rome’s wealthy class, called patricians  Senators elected two members, consuls to lead government  Both had to agree  Ea. Consul had the power to block the actions of others by saying veto (“I forbid!”)
  • 8.
    Persuasive speech-making wasone of the key skills of a Roman senator. This painting shows a famous incident in which the consul Cicero (left) accuses a politician named Catiline (extreme right) of being a traitor.
  • 9.
    Origins of Government  Aristotle- a scholar in Ancient Greece, one of the first students of government [polis].  Politics, democracy, and republic- originated in ancient Greece & Rome.
  • 10.
    Review- (Identifying) What idea of government do we associate with the ancient Greeks?  Democracy  Discuss the pros and cons of direct democracy versus representative democracy.  Pros: everyone’s opinion can be heard; everyone’s interests can be considered  Cons: discussions can become time-consuming and frustrating; voters may be swayed by personality and rhetoric rather than accurate knowledge
  • 11.
    Review- (Identifying) What idea of government do we associate with the ancient Romans?  republic  What ancient form of government- Greek or Roman- does the United States most closely resemble? Why?.  Republic/Roman  It is governed by leaders who represent the people, rather than directly by the people themselves.
  • 12.
    The State Originally comes from the Latin word “to stand”  In the U.S.A means- a political community that occupies a definite territory and has an organized government with the power to make and enforce laws without the approval from any higher authority.
  • 13.
    Essential Features ofa State  4 features:  Population  Territory  Sovereignty  Government
  • 14.
    Population  Thenature of a state’s population affects its stability  States that share a general and political consensus have the most stable government  Mobility affects states too- millions of Americans move every year  This leads to political power shifting  Since the House of Representatives is based on population, the census can lead to state’s losing or gaining power.
  • 15.
    Territory  Stateshave established boundaries  i.e.- Continental boundaries: Atlantic/Pacific Oceans  Recognized Borders w/ Canada & Mexico  Through purchase, negotiation and war-the U.S. has gained more territory
  • 16.
    Sovereignty  Politicalsovereignty- means that the state has supreme and absolute authority within its territorial boundaries  It has complete independence and complete power to make laws, shape foreign policy, & determine its own course of action  In theory no state has the right to interfere with the internal affairs of another
  • 17.
    Government  Theinstitution through which the state maintains social order, provides public services, and enforces decisions that are binding on all people living within the state
  • 18.
    Theories of theOrigin of State •Evolutionary Theory •Force Theory •Divine Right Theory •Social Contract Theory
  • 19.
    The Purposes of Government 1. Maintain social order 2. Provide public services 3. Provide for national security and public defense 4. Provide for an control the economic ststem
  • 20.
    Respect my Authority!  Decisions of government can be enforced upon ALL society  Derive their authority from their legitimacy and their ability to use coercive force  Legitimacy is based on the consent of the people  Coercive force derives from the police, judicial and military institutions of government
  • 21.
    Maintaining Social Order  Through laws can resolve social conflict  Provides structure like courts to help resolve disagreements orderly  Places limits on what people can do  An effective government will allow citizens to plan for the future, get an education, raise a family and live orderly lives.
  • 22.
    Providing Public Services  Providing essential services to make community life possible  Promoting public safety  i.e. Government inspectors of meat and food  State legislators passing laws that require driving tests  What other public services can you think of?
  • 23.
    National Security Protect against attacks from other countries or terrorist agencies  In a world with spy satellites, international terrorism, huge armies, computer hackers-this becomes a complex job  Also handles relationships with other countries and provides economic security by enacting trade agreements with other countries  States have the power to form agreements with other countries, however the federal government can limit that
  • 24.
    Making Economic Decisions  Providing a national currency  Distributes benefits and public securities  Attempts to stimulate growth and stability via controlling inflation, encouraging trade and regulating the development of natural resources
  • 25.
  • 26.
  • 27.
    Government Systems Unitary  Federal
  • 28.
    Constitutions and Government  A Constitution is a plan that provides the rules for government.  Major Purposes: 1. It sets out ideals that the people bound by the constitution believe and share 2. Establishes the basic structure of government and defines the governments powers and duties 3. It provides the supreme law for the country
  • 29.
    Constitutions  Maybe written or unwritten  U.S. is the oldest written [1787] still serving a nation today  Other key ones: France, Kenya, India, Italy and Switzerland  Great Britain, has an unwritten constitution based on hundreds of years of leg. Acts, court decisions and customs
  • 30.
    Constitutional Government All governments have a constitution in the sense that they have some plan for organizing an operating the Government. i.e. Republic of China  HOWEVER-constitutional government is a limited government, unlike the Republic of China
  • 31.
    Incomplete Guides Constitutions are incomplete for 2 reasons:  No written constitution by itself can spell out laws, customs, and ideas that grow up around the document itself ○ I.E.- FDR elected 4x, previous it was custom not law that limited to 2 terms- the 22 Amendment changed this  A constitution does not always reflect the actual practice of a government in a country ○ I.E.- China has a constitution with statements about basic rights, freedoms, & duties of citizens yet has a police force to spy on citizens and punish those with opposing views
  • 32.
    A Statement ofGoals- The Preamble
  • 33.
    A Framework for Government  Main body of a constitution sets out a plan for government  U.S. describes relationship b/w national gov & state  Divided into articles and sections- U.S. has 7 articles/21 sections  Constitution is the supreme law for states  Constitutional law primarily concerns the extent and limits of government power and the right of citizens
  • 34.
    Politics  Effortto control or influence the conduct and policies of government  People take part in politics when joining citizens’ groups protesting higher taxes or when they meet with mayors about street repairs
  • 35.
    Governing in the20th Century  Industrialized Nations vs. Developing Nations  U.S.  Saharan Countries  Independence- means that nations must interact or depend on one another either economically or politically  1993- NAFTA- affects goods produced and sold b/w U.S., Canada & Mexico
  • 36.
    Murky waters U.S. depended on Middle East for oil supplies  1990- Pres. Bush sent troops to Saudi Arabia after Iraq invaded Kuwait  War threatened to break out and people feared an oil shortage in U.S.  U.S. & allies defeated Iraq in the Persian Gulf War but tensions continued  1996- 27 missile attacks against Iraqi President Saddam Hussein threatened oil producing countries
  • 37.
    Nonstate International Groups  3 categories: 1. Political movements such as national liberation movements 2. Multinational corporations 3. International organizations  PLO [Palestine Liberation Organization]  General Motors  Nabisco  Mitsubishi  Sony  United Nations
  • 38.
  • 39.
  • 40.
    Autocracy- 1 person  Totalitarian Dictatorship- ideas of a single leader or group of leaders are glorified. Government seeks to control aspects of social/economic life.  i.e. Hitler- Nazi Germany  Monarchy- a King, Queen, or Emperor exercises supreme powers of Gov. Usually inherit position [Absolute vs. Constitutional who shares gov. powers w/ elected legis. And serve in a ceremonial capacity]  i.e. Saudi Arabia & Great Britain
  • 41.
    Oligarchy- Small Group  Small group holds power which derives from wealth, military, social position or a combination. Sometimes religion is source of power-  Oligarchies usually suppress all political opposition- sometimes ruthlessly  Communism I.E. China
  • 42.
     Review: Authoritarian governments are undemocratic for all of the following reasons EXCEPT  A. Once elected, the leaders rule for life  B. Elections for political office are often fraudulent  C. Popular sovereignty and social contract are practiced  D. Popular sovereignty and social contract are not practiced
  • 43.
    Democracy- Ruled bythe People  Key idea- people hold sovereign power.  Pericles: “Our constitution is named a democracy because it is in the hands not of the few, but of the many”  Abraham Lincoln: “government of the people, by the people, and for the people”
  • 44.
    Direct Democracy people govern themselves by voting on issues individually as citizens- no country today does this  Exists only in small societies where citizens can actually meet regularly to discuss and decide key issues and problems
  • 45.
    Representative Democracy people elect representatives and give them the responsibility and power to make laws and conduct government  I.E.- [U.S].  An assembly of the people’s representatives may be called a council, a legislature, a congress or a parliament
  • 46.
    Republic  Votershold sovereign power.  Elected representatives are responsible to the people exercise that power  Most American view representative democracy, republic and constitutional republic mean the same thing: a system of limited government where the people are the ultimate source of governmental power.
  • 47.
    Characteristics of Democracy  Individual liberty- requires that all people be as free as possible to develop their own capacities  Government in a democracy works to promote the kind of equality in which all have equal opportunity  Government decisions be based on majority rule  Constitution helps ensure rights of the minority
  • 48.
    Free Elections Give people the chance to choose their leaders and voice their opinions on various issues  Everyone’s vote carries the same weight  All candidates have the right to express their views freely giving voters access to competing ideas  Citizens are free to help candidates or support issues  Legal requirements for voting [i.e.: age, residence, citizenship] are kept to a minimum  Citizens may vote freely by secret ballot without coercion or fear of punishment
  • 49.
    Competing Political Parties  Rival parties help make elections meaningful  Give voters a choice among candidates  Help simplify and focus attention of key issues for voters
  • 50.
    The Soil ofDemocracy  Active Citizen Participation  Serving as a juror, voting, informing themselves of the issues, work for candidates, run for government  Free Enterprise  Stable- better able to support democratic governments  People out of work or unable to feed families become more concerned about security than voting or political rights
  • 51.
    The Seeds toSuccess  More likely to succeed with an educated public  Education is the great equalizer  Civil Society- a complex network of voluntary associations, economic groups, religious organizations, and many other kinds of groups that exist independently of government  Give citizens means to take responsibility for protecting their rights Widespread Education Civil Society
  • 52.
    Social Consensus General agreement about the purpose and limits of government
  • 53.
  • 54.
    Role of EconomicSystems 1. What and how much should be produced 2. How goods and services should be produced 3. Who gets the goods and services that are produced  Capitalism, Socialism, & Communism answer these differently
  • 55.
    Capitalism 1. privateownership and control of property and economic resources 2. Free enterprise 3. Competition among businesses 4. Freedom of choice 5. Possibility of profits
  • 56.
    History of Capitalism  1776- Adam Smith, Scottish philosopher and economist wrote The Wealth of Nations  Concept of Laissez- Faire came about  Government role strictly limited to those few actions to ensure free competition
  • 57.
    Governmental Influence 1900s- economy of the U.S. increased  Government has grown and became the single largest buyer of goods and services in the country  Regulated the economy for varying purposes  Meat Inspection Act and Pure Food and Drug Act  The Great Depression of the 1930s left millions without job- therefore Social Security and programs to aid unemployed sprung up
  • 58.
    Mixed-Market Economies Free enterprise + government decisions in market place = government keeps competition free and fair and protects the public interest
  • 59.
    Socialism 1. Thedistribution of wealth and economic opportunities equally among the people 2. Society’s control through its government, of all major decisions about production 3. Public ownership of most land, of factories, and of other means of production
  • 60.
    Democratic Socialism The people have basic human rights and have some control over government officials through free elections and multiparty systems BUT government owns the basic means of production and makes most economic decisions  Opponents claim socialism stifles individual initiative and high taxes hinder economic growth and leads to big government
  • 61.
    Karl Marx Karl Marx [1818-1883] German thinker, writer- a socialist who advocated violent revolution. Published the Communist Manifesto & Das Kapital  Believed that in industrial nations the population is divided into capitalists [bourgeoisie] and the workers [proletariat]  Capitalism is a ruling class because they use their economic power to force their will on the workers
  • 62.
    Marx and Communism  Believed wages in a capitalist system would never rise above a subsistence level- just enough for workers to survive  Predicted class struggles  Promoted Communism- one class evolving, property all held in common and no need for government
  • 63.
    Command Economy Communist nations believe government planners decide how much to produce, what to produce and how to distribute the goods and services produced  Top-down management  State owns the land, natural resources, industry, banks and transportation facilities as well as mass communications