CHAPTER 9: GOVERNMENT AND ECONOMY
DREAMS AND DETERMINATION:
Individuals risk rejection, and sometimes humiliation, for the opportunity to realize their dreams.
POWER AND AUTHORITY
Movement away from agricultural to industrial economies, and from the rule of monarchs to more
democratic forms of government,
the ability to exercise one's will over others, even if they resist
Make people do what you want them to do (war, clean room, take exam)
Involve large organizations or intimate groups
Three basic sources of power
force, influence, and authority
Force is the actual or threatened use of coercion to impose one's will on others. Imprison political
contestants; terrorists seize embassies
Influence, on the other hand, refers to the exercise of power through a process of persuasion.
Authority refers to institutionalized power that is recognized by the people over whom it is exercised.
person's authority is often limited by her or his position; often someone bigger makes rules (referees
call points in game)
Three types: traditional, rationallegal, and charismatic.
Traditional Authority ▯ power was passed down from generation to generation, legitimate
power is conferred by custom and accepted practice; ruler may be loved or hated, competent or destructive;
in terms of legitimacy, that does not matter.
Accept the ruler's authority because that is how things have always been done Ruler has the ability to determine laws and policies.
RationalLegal Authority ▯ The Confederation Act of 1867 gave the Canadian Parliament and
its elected members the authority to make and enforce laws and policies;
Normally agreedupon and accepted rules, principles, and procedures of conduct that are established in
order to accomplish goals in the most efficient manner possible
Bureaucracies are the purest form of rationallegal authority
Charismatic Authority ▯ legitimized by the charisma of an individual; exceptional personal or
emotional appeal to his or her followers
lead or inspire without relying on set rules or traditions
Jesus, Joan of Arc, Gandhi, Pierre Elliott Trudeau, or Martin Luther King, Jr., as having qualities that set him
or her apart from ordinary citizens, that leader's authority will remain secure and often unquestioned
Hitler’s charisma charismatic appeal turned people toward violent and destructive ends in Nazi Germany.
Charismatic authorities use media to appeal to national audiences
Taiwan/ South Korea exaggerate military threats by China/ North Korea
Harper uses television ton convince pop of dangers of coalition government
industrial society, a society that depends on mechanization to produce its goods and services
more global economy of the industrial age called for largescale systems of power and authority
economic system refers to the social institution through which goods and services are produced,
distributed, and consumed.
Two economic systems ▯ capitalism & socialism
no nation fully embodies either model.
Economy of each individual state represents a mixture of capitalism and socialism,
Land functioned as the source of virtually all wealth, BUT CHANGED BY INDUSTRIAL
required that certain individuals and institutions be willing to take substantial monetary risks in order to
finance new inventions, machinery, and business enterprises Rich replaced landowners as powerful economic forces
Transition to private ownership of business was accompanied by the emergence of capitalism—an
economic system in which the means of production are held largely in private hands and the main incentive
for economic activity is the accumulation of profits
Capitalism varies in government regulation of private ownership & economic activity
Laissezfaire: people could compete freely, with minimal government intervention in the economy.
Business retained the right to regulate itself and operated essentially without fear of government
competition in the free market, balance through demand and product supply
monopoly exists when a single business firm controls the market.
Domination ▯ firm controls price/ quality/ availability ▯ violate the ideal of free competition; results in
less choice for buyers
laws prevent any business from taking over so much of the competition in an industry that it controls the
Crown corporations , which are monopolistic in that they are owned by the government, but they operate
as independent financial entities
Globalization, spread the capitalistic pursuit of profits around the world.
governments are not always prepared to deal with the sudden influx of foreign capital and
its effects on their economies
Rise in desire for coltan in Congo; other countries want it ▯ raiding the Congo's national parks,
slashing and burning to expose the coltan underneath the forest floor.
Companies withdraw; hurts local economy
disturbed by the exploitation of the working class during the Industrial Revolution. In their view, capitalism
forced large numbers of people to exchange their labour for low wages.
Rich people exploit workers;
Socialism eliminates economic exploitation
means of production and distribution in a society are collectively rather than privately owned
socialist system would ensure that everyone got enough
believe that the central government, acting as the representative of the people, should make basic
government ownership of all major industries—including steel production, automobile manufacturing, and
agriculture—is a primary feature of socialism as an ideal typ communism is an economic system under which all property is communally owned and no
social distinctions are made on the basis of people's ability to produce. (E.g. Soviet Union, the People's
Republic of China, Vietnam, Cuba, and the nations of Eastern Europe)
mixed economy features elements of more than one economic system.
involves removing some goods and services from the competitive free market and providing them for all or
subsidizing them to assure broader access.
police and fire protection, roads, and public schools
access to such public goods without regard for their ability to pay.
HEALTH CARE SYSTEM IN CANADA
Capitalism today features government regulation of economic relations. Without regulation, business firms
would be more likely to mislead consumers, endanger workers' safety, and even defraud the companies'
investors—all in the pursuit of greater profits.
Governments: monitor prices, set safety and environmental standards for industries, protect the rights of
consumers, and regulate collective bargaining between labour unions and management
Govt rarely takes over ownership of country
Opening up some aspects of the economy to competition and the free marke
Statecontrolled enterprise ▯ peasants receiving payment in goods based on their contribution to the
collective good. It did not work well economically.
marketoriented reforms, revising the nation's legal structure to promote private business.
statecontrolled businesses to private entrepreneurs, in hopes that the firms could be turned around
Chinese workers, the loosening of state control over the economy has opened up opportunities for
negative consequences of taking this path
Accumulation of wealth by a few violates a core socialist principle
Worker life ▯ poor working conditions, minimal pay, suffer from high injury rates, and harsh working
conditions contribute to rapid turnover in the labour force
no pension system in China, so retirees must struggle to find other ways to support themselves
pollution is common in urban areas Chinese women traditionally have been relegated to subservient roles in the patriarchal family structure,
and despite recent economic changes, women receive lower wages than men who work in the same job
informal (or underground) economy operates within the confines of the dominant macroeconomic
transfers of money, goods, or services take place but are not reported to the government
People trade goods and services with someone (say, exchanging a haircut for a computer lesson), selling
goods on the street, and engaging in illegal transactions, such as drug deals.
Canada Revenue Agency urges citizens to report this crime; “Informant Leads” program
Underground economy about 36 billion
In the developing world, governments often create burdensome business regulations that overworked
bureaucrats must administer.
Everything goes underground; as government licenses/ permits are needed ▯ takes up took much time
Economy is dysfunctional for a country's overall political and economic wellbeing
Operate in remote areas to avoid detection; cannot easily expand when they become profitable
participants in the informal economy are less likely than others to save and invest their income
Work for less benefits, no protections
Economies are not static. Increased opportunity for workers, regardless of race, ethnicity, or gender—made
possible in part by various social movements—has made the workforce more diverse. Technological
innovation and globalization have reduced the number of traditional bluecollar jobs through
deindustrialization. Microfinancing has opened up opportunities for poor people, especially women, around
CHANGING FACE OF THE WORKFORCE
During World War II, when men were mobilized to fight abroad, women entered
the workforce in large numbers
Legislation increased workplace opportunities
workforce reflects the diversity of the population, as ethnic minorities enter the
labour force and immigrants and their children move from marginal jobs or
employment in the informal economy to positions of greater visibility and
People will soon find themselves supervising and being supervised by people
very different from themselves. DEINDUSTRIALIZATION
deindustrialization, which refers to the systematic, widespread withdrawal of
investment in basic aspects of productivity, such as factories and plants.
Giant corporations that deindustrialize are not necessarily refusing to invest in
new economic opportunities. Rather, the targets and locations of investment
change, and the need for labour decreases as advances in technology continue
to automate production
may move their plants from the nation's central cities to the suburbs. The next
step may be relocation from suburban areas to other countries, such as the
United States or Mexico, or perhaps international relocation.
Or may close factories
deindustrialization often involves relocation, it can also take the form of corporate
restructuring known as downsizing, which involves reducing the size of a
company's workforce. The goal is to increase efficiency and reduce costs in the
face of growing worldwide competition.
restructuring occurs, the impact on the bureaucratic hierarchy of formal organizations can be significant
arge corporation may choose to sell off or entirely abandon less productive divisions and to eliminate layers
of management it views as unnecessary.
Freeze wages/ cut out benefits
Increasing reliance on automation also spells the end of work as we have known it.
new trend toward offshoring carries this practice one step further by transferring other types of work to
foreign contractors. Now, even large companies are turning to overseas firms, many of them located in
Latest tactic to reduce costs
Began transferring manufacturing jobs to foreign factories, where wage rates were much lower.
Office and professional jobs are being exported, too, thanks to advanced telecommunications and the
growth of skilled, Englishspeaking labour forces in developing nations with relatively low wage scales. The
trend includes even those jobs that require considerable training, such as accounting and financial analysis,
computer programming, claims adjustment, telemarketing, and hotel and airline reservations.
Social costs of deindustrialization and downsizing cannot be overemphasized. Plant closings lead to
substantial unemployment in a community, which can have a devastating impact on both the micro and
Micro ▯ less money for a family worker; home repairs, retirement, family cohesion put aside and suffer
many dismissed workers eventually reenter the paid labour force, they often must accept less desirable
positions with lower salaries and fewer benefits. Unemployment and underemployment are tied to many of
the social problems offshoring will become the “third Industrial Revolution”—a lifealtering shift in the way goods and services
are produced and consumed. Blinder says we have barely seen the “tip of the offshoring iceberg.” While
offshoring may not lead to largescale unemployment, it will likely produce a shift in Western labour
markets. Jobs that are easily outsourced, like accounting and computer programming, will migrate to
developing countries, leaving those that must be done on site, like nursing and construction, at home.
The gap in our economy is between what we have and what we think we ought to
have—and that is a moral problem, not an economic one.
Financial woes of the North American auto industry, the GM truck manufacturing plant in
Oshawa, Ontario, was forced to stop production in May 2009.
Offshoring brought jobs and technology to nations such as India, there is a downside to offshoring for
foreign workers as well. However, hundreds of millions of other Indians have benefitted little if at all from the
trend. Instead of improving these people's lives, the new business centres have siphoned water and
electricity away from those who are most in need.
THEORETICAL PERSPECTIVES ON POLITICS AND THE ECONOMY
Durkheim asserts that the modern division of labour can create interdependence and thus foster solidarity
the economy and political spheres require people to work at all levels so as to ensure smooth functioning of
sees power as democratically distributed
power is concentrated in society's elites
Marx and Engels condemn capitalism's inherent exploitation
Marx and Engels argue that the economic and political structure will develop into socialism—in which the
means of production are collectively owned
in turn, the state will “wither away” and evolve into communist society
power is concentrated among men, particularly White men of privilege
critiques the restricted participation of women in political life and the economy
highlights women's gains while acknowledging the need to continue fighting for greater representation
power and authority must be recognized by members of society
considers individual motivations for economic and political participation
examines interpersonal understandings of power, conflict, and peace
Economic development can, however, have a positive impact on people's lives lending small sums of money to the poor so that they can work their way out of poverty. Borrowers use the
money to get small businesses off the ground—to buy the tools, equipment, and bamboo to make stools;
the yarn to weave into cloth; or cows to produce milk. They then sell the products they produce in local
Poor people normally not allowed to get loans ▯ this is the gap.
“banking the unbanked,” microfinancing was the brainchild of Bangladeshi economist Muhammad Yunus. In
1976, in the midst of a devastating famine in Bangladesh, Yunus founded the Grameen (meaning “village”)
Bank. The idea came to him when he reached into his pocket to lend $27 to a group of villagers who had
asked him for help. Working through local halls or meeting places, the Grameen Bank has now extended
credit to nearly 7 million people. The idea has spread, and microloans have even been underwritten by
multinational organizations such as the International Monetary Fund and forprofit banks such as Citigroup.
Microfinancing works well in countries that have experienced economic devastation.
2002, after decades of conflict and military occupation, Afghanistan did not have a single functioning bank.
Five years later, with the help of the World Bank and other donors, Afghans could get microloans and other
financial services in 22 of the country's 34 provinces. The new microlenders are the first evidence of a
formal financial sector that Afghanistan has seen in years. Their funds have helped to start businesses and
allowed farmers to convert from opium growing to other crops.
90 percent of the recipients of microcredit are women, feminist theorists are especially interested in the
growth of microfinancing. Women's economic status has been found to be critical to the wellbeing of their
children, and the key to a healthy household environment.
where women often are not treated as well as men, being entrusted with credit is particularly empowering to
Types of Government
all societies, someone or some group—whether it be a tribal chief, a dictator, a council, or a parliament—
makes important decisions about how to use resources and allocate goods. Inevitably, the struggle for
power and authority involves politics,
“who gets what, when, and how.”
within the context of a political system, which is the social institution that is founded on a recognized
set of procedures for implementing and achieving society's goals, such as the allocation of valued
Government represents an institutionalized form of authority. Given the scope of international relations and
the globalization of national economies, these formal systems of authority make a significant number of
critical political decisions. Such systems take a variety of forms, including monarchy, oligarchy, dictatorship,
totalitarianism, and democracy.
MONARCHY monarchy is a form of government headed by a single member of a royal family, usually a king, queen,
or some other hereditary ruler.
Belief that God ranted kings divine right to rule
they governed on the basis of traditional forms of authority, sometimes accompanied by the use of force.
beginning of the 21st century, however, monarchs held genuine governmental power in only a few nations,
such as Monaco. Most monarchs, such as Queen Elizabeth II in England, now have little practical power;
they serve primarily ceremonial purposes.
Canada’s constitutional monarchy; overnor general acts as the Queen's representative, primarily performing
Anachronistic monarchy; 2011 wedding of Prince William and Kate Middleton generated renewed
enthusiasm for the royals.
An oligarchy is a form of government in which a few individuals rule.
Occurs in military rule ▯ small factions of military officers may forcibly seize power, either from legally
elected regimes or from other military cliques.
reserved for governments that are run by a few selected individuals.
People's Republic of China can be classified as an oligarchy if we stretch the meaning of the term. In
China, power rests in the hands of a large but exclusivruling group , the Communist Party. In a similar
vein, we might argue that many industrialized nations of the West should be considered oligarchies (rather
than democracies), since only a powerful few—leaders of big business, government, and the military—
DICTATORSHIP AND TOTALITARIANISM
A dictatorship is a government in which one person has nearly total power to make and enforce laws.
Dictators rule primarily through the use of coercion, which often includes imprisonment, torture, and
executions. Typically, theseize power rather than being freely elected (as in a democracy) or inheriting
power (as in a monarchy). Some dictators are quite charismatic and manage to achieve a certain popularity,
although their supporters' enthusiasm is almost certainly tinged with fear. Other dictators are bitterly hated
by the people over whom they rule.
dictators develop such overwhelming control over people's lives that their governments are called
totalitarian. (Monarchies and oligarchies may also achieve this type of dominance.) Totalitarianism
involves virtually complete government control and surveillance over all aspects of a society's social and
political life. Germany during Hitler's reign, the Soviet Union under Stalin in the 1930s, and North Korea
today are classified as totalitarian states.
In a literal sense, democracy means government by the people. n large, populous nations such as Canada, government by the people is impractical at the national level.
Canadians cannot vote on every important issue that comes before Parliament. Consequently, popular rule
is generally maintained through representative democracy, a form of government in which certain
individuals are selected to speak for the people
Uprisings in Libya/ Egypt – democratic pushes
Longestablished patterns of rule are being overturned due to the courage and perseverance of those who
democratic rule can also be challenged. A longstanding dispute in Canada involves the power of First
Nations peoples to govern themselves. In a 1995 policy statement, the federal government recognized the
inherent right of Aboriginal selfgovernment, and outlined an approach for negotiating selfgovernment
agreements. Many agreements have been reached or are in negotiations; however, the provision of land,
money, and authority to Aboriginal groups has also met with opposition.
identification of Quebec as a distinct nation has met with similar resistance.
The idea of granting individual groups their own “nationhood” within (what many think of as) a single nation
has proven divisive.
Political Behaviour in Canada
Canadian citizens take for granted many aspects of their political system. They are accustomed to living in
a nation with a Charter of Rights and Freedoms , a variety of political parties, and the right to vote by
They are responsible for electing the governing political party (the leader of which becomes prime minister),
and provincial and local governments that are distinct from the federal government. Because it is, in
principle, a representative democracy, the system depends upon all individuals having equal access to and
input into the political process in order to be fully responsive.
Two concerns ▯ voter participation and race and gender representation
PARTICIPATION AND APATHY
In Canada, virtually all citizens are familiar with the basics of the political process, and most tend to identify
to some extent with a political party.
However, only a small minority of citizens, often members of the higher social classes, actually participate
in political organizations at the local, provincial, or federal level
“political participation” in Canada means searching for political information, volunteering at a political event,
or writing to politicians to express views on relevant issues
13 percent of Canadians are “cardcarrying” members of a political party, but less than 5 percent are
actually actively involved. 980s, it had become clear that many people in Canada were beginning to be turned off by political parties,
politicians, and big government. The most dramatic indication of this growing alienation comes from voting
statistics. Today, voters appear to be less enthusiastic than ever about elections, even at the federal level.
Participation of eligible voters in federal elections declined from 75 percent in 1988 to 59 percent in 2008.
There was an upswing in voter turnout in 2011 is attributed to the successful NDP campaign that resonated
with many Canadians
NDP became opposition, first time ever; even modestly higher voter turnout can dramatically change
high voter turnout, it is increasingly common to hear national leaders of other countries complain of voter
apathy. Political participation makes government accountable to the voters. If participation declines,
government operates with less of a sense of accountability to society.
issue is most serious for the least powerful individuals and groups in Canada. Voter turnout is especially
low among Aboriginal peoples and recent immigrants
many more potential voters fail to register to vote. The poor—whose focus understandably is on survival—
are traditionally underrepresented among voters as well. The low turnout found among these groups is due
at least in part to their common feeling of powerlessness.
by declining to vote, they encourage political power brokers to continue to ignore the interests of the less
affluent and the nation's minorities.
new parties offer alternative visions to the established political regime, more Canadians may feel motivated
to exercise their right to vote.
RACE AND GENDER IN POLITICS
politics is synonymous with power and authority, we should not be surprised that marginalized groups, such
as women and racial and ethnic minorities, lack political strength.
omen gained the right to vote in federal elections in 1918, but provincially, that milestone varied between
1916 (Manitoba) to 1940 (Quebec)
Asians not allowed to vote until 1948
First Nations peoples received unconditional voting rights in 1961; previously, they had to give up their First
Nations status in