Chapter 3 Characteristics of Market System Capitalism and Political EconomyUpdated 6/6/16 Please
Site of the Month Current Political Economy Videos 6/7/16 are election related.
I. Basic Characteristics of Capitalism 2 videos
II. Modern Capitalism 2 videos
III. Criticism of Modern Capitalism 6 videos
IV. How Markets Work: The Circular Flow
V. Other Economic Systems 3 video
VI. Our Democratic Federalist Republic
VII. Politics in the U.S. Democratic Republic 9 videos
VIII. Conclusion 1 video
VIII. Chapter Videos on One Page
IX. Quiz on Economic Systems
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Market System Capitalism and Political Economy Videos
Economics AP Videos
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Economics AP Videos are designed for AP Testers
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Editor's comment concerning free trade
Modern Capitalism has Many New Features
A. Importance of Capital Goods and Technology
1) Complexity limits product lines.
2) Division of Labor allows specialization by ability, training.
C. Modern Capitalism has many rent seekers trying to increasing
wealth through politics.
1. Corporate Capitalism: a capitalist marketplace
characterized by the dominance of hierarchical,
2. State Capitalism: economy driven by the state, less
reliance on markets practiced in China.
3. Money Manager Capitalism: money managers dominate
savings and investing and markets impacting economy's
4. Patrimonial Capitalism is living off of inherited wealth
5. Crony Capitalism has been around from the beginning.
a. New name is Corporate Welfare
b. How crony capitalism corrupts the free market 30 min video
c. Hunter Lewis on crony-capitalism 30 min video
d. Geithner and Summers Crony Capitalist?
e. Crony Capitalism Index
6. Neoliberal Capitalism began with the Reagan era of deregulation
E. Democratic Capitalism vs. Capitalistic Democracy
is about cost effectiveness of democracy.
1. Capital in the Twenty-First Century was a very popular
2014 book by Thomas Pikett.
a. Capitalism vs. Democracy editorial 1/28/14
b Capitalism in the Twenty-First Century 3/25/14
c. Taking on Adam Smith and Karl Marx NYT 4/19/14
d. Sequester Capitalism, Democracy and Money Theories
2. Capitalism is Not to Blame for Middle-Class Plight
3. Capitalism is a concise overview from reference.com
4. Calvin and Hobbes Explain Modern Capitalism
Sources of Economic Rent Seeking
"rent-seeking is expending resources on political activity to increase one's share of existing wealth without creating wealth"
U.S. was 15th in 2015 and 16th in 2016.
Criticism of Modern
1.The Successes and Price of Capitalism
2. Capitalism in Crisis 1:40 is well-done. Crisis of Capitalism 11:10 also well done
3. Seven Bad Ideas from the left and Ten Reasons to be Bullish on U.S. Economy
4. The Crisis of Capitalism, The Critique from the right
5. Unfettered Capitalism, Chris Hedges & Michael Moore 8:44
6. The End of Capitalism
7. The Private Sector against corruption 30 min
8. Great Recession from a Classical-Keynesian View
from Roger Farmer Pepperdine School of Public Policy
a. Who are the Academic Sc 9.11
b. Refining Classical Economics 9.29
c. Effect of the Great Depression 9.14
d. 1970's oil shock shocks the world of economics 8.52
e . How bad is the economy and where is it going 7.41 B . Readings
1. Why Intellectuals Hate Capitalism by Robert Nozick
2. Is Capitalism Moral? A Commonwealth Club Podcast
3. Coercive power of capitalism
4. Capitalism and Inequality (Jerry Z. Miller, Foreign Affairs)
Without social safety nets capitalism is doomed through
social disorder. Editor's Note: I've seen a lot of verbiage
blaming Capitalism for the inequality in the United States.
Inequality is a political question. It is the responsibility of
voters through politicians to equitably distribute production
without substantially limiting the productive capabilities of
capitalism. An example would be how well the economy
adjusted to the 2007-8 Balance Sheet Great Recession.
The income distribution problem it caused has been helped
by Obama Care and now its up to our economy to make
sure it is economically efficient.
5. Capitalism Versus the Philosophers
See People Not Voting Their Pocketbook is Killing the Poor
C. Capitalism and Business
a. Reimagining Capitalism: Documentary of the Week
b. Chinese Capitalism Better than American Capitalism
c. Hoodwinked An Economic Hit Man Reveals Why the
World Financial Markets Imploded--and What We
Need to Do to Remake Them, by John Perkins
d. How Will Capitalism End 6/14
e Has Capitalism Reform Reached a Turning Point Forbes
f. Revisiting Old Argument About Impact Capitalism
g. Economic Report of the President 2014 is positive
f. The Great Recession looks at a recent capitalistic failures.
Some Question his motives as Michael Moore's estimated net worth is 50 million dollars.
Ida Tarbell an investigative journalist called a Muckrakers known. She exposed Standard Oil Trust. Working for McClure Magazine and other monthly magazines they help educated the public from 1890 to 1929 in what is known as the Progressive Era. Her work represents how we slowly improve the people properly represented by our democratic republic. See Inequality and the monopolies of unfettered techno markets
|IV. How Markets Work: The Circular Flow|
Free Internet Libraries
1. Pure capitalism of Adam Smith never existed.
2. Recent economic systems are Mixed Economies
(a mixture of Capitalism and Socialism) See
Democratic Capitalism vs. Capitalistic Democracy
B. Other Economic Systems
1. Socialism has collective ownership and management
of economic resources that are more equally distributed.
See History of Socialism
2. Democratic Socialism as practiced in Western Europe
has public ownership of key industries such as
transportation and communication.
a. Economic systems of Europe began moving away
from socialism toward capitalism in the late 1970's.
b. Margaret Thatcher former prime minister of England
started this trend.
c. Ronald Reagan agreed and stressed the market
system during his presidency.
d. Capitalism and Socialism
1. Capitalism vs. Socialism a Crash Course Video in
World History #33 uses humor teaching the basics.
2. Laissez fair Capitalism vs. Socialism Video
See Social democracy
Editors Question: Will China's system morph into
3. Communism is the ideal of those practicing a "Marxian
system. " Bolsheviks wanted immediate revolution.
a. 19th century philosopher Karl Marx created the system.
b. Wealth is collectively owned and managed in this
planned,` command economy.
c. The Paris Commune of 1871 along with the French
Revolution explains why so many feared change
promised by new liberal economic systems.
d. Some equate communism with a totalitarian political
system democratic communism has never existed.
Fabian Economics came
|Degrees of Socialism
Country Economic Policies
1. Colonialism where one nation assumes political or economic control over another nation is imperialistic. The practice has occurred throughout history and has been compatible with all economic and political systems.
Greece and the Endgame of the Neocolonial Model of Exploitation
Ronald Reagan and Margaret Thatcher at the White House, 16 November 1988
Editors Note: Most unbiased observers would feel uncomfortable calling Democratic Socialism radical. Followed by many of the great countries of Europe after WWII, it did very well but some would feel it drifted toward communism. by trying to redistribute too much wealth from the top toward the bottom. Prime Minister Margaret Thatcher pushed Great Britan toward capitalism by selling many large state owned industries and instituted business deregulation. Ronald Reagan followed suit in the U.S. though he concentrated on deregulation. Some 30 years later Thatcher's Great Britan has fared better than more socialistic continental European countries as politicians have allowed government spending and borrowing to get out of control. Conservatives in America feel they must stop U.S. politicians from doing the same thing.
VI. Our Democratic
Editor's notes on U.S. government
Liberal values from Lock concern an individual's natural rights of equality, liberty, property, the necessity of consent, and limited government. Order and importance of these rights was then and still is the focal point of U.S. political discussions. For about three-hundred years these discussions have centered on minimal state liberalism (today's conservatism) vs. active state liberalism (today's liberalism). The question was to what degree should government get involved with the protection of which of an individual's natural rights. How much property through taxes should be used to foster equality?
recurring themes have been present in these political
divides powers between member units
so that political
is constitutionally decentralized between at least two units. Each level has
some final authority and has some areas of self government.
a. Federalism in the United States protects states rights with a concept
of Dual Federalism but hardships caused by the Great Depression led
some toward the concept of Cooperative Federalism.
b. A conservative look at Federalism video 1.38
c. The political Revolution of 1800 entailed Jefferson's Republicans
taking over for the Federalist Washington, Hamilton and Adams. It
began a 200 plus year battle concerning Federal Government power.
Editor's Note: Secretary of the Treasury Alexander Hamilton orchestrated the first federal tax on imports in 1789. Many believers in state rights were unhappy even though tax revenue was needed to pay Revolutionary War debt of both state and federal governments. Relative to GDP, it was the largest federal debt to exist until 1933 when revenue a collapse caused D3 (deep-do-do). Hamilton began the practices of increasing taxes (though not enough) to pay for war, paying interest and paying principle over a number of years. The practice of refinancing principal began after WWI. Some call this passing debt to our children but it has been 100 years and none has been paid so far. The practice of not increasing taxes to pay for war started with Bush II when he cut taxes while starting two wars and increasing Medicare. Hamilton (to the dismay of Jefferson) also began the practices of the federal government paying state debt with many states showing their appreciation by telling the federal government to stay out of state business. This practice continues today. Source
government power resides in a constitutionally
determined electorate each with an equal say in determining majority will.
Political decisions are such that majority's power is absolute and unlimited.
The most difficult issue concerning democracy success has always been
controlling Majority Factions as states in The Federalist Papers
|Founding father Madison "...defines a faction as "a number of citizens, whether amounting to a minority or majority of the whole, who are united and actuated by some common impulse of passion, or of interest, adverse to the rights of other citizens, or to the permanent and aggregate interests of the community".|
C. Kinds of Democracy
Presidential Democracy has a president and the legislative
Making Laws in a Democracy
History of Democracy
F. Republic vs. Democracy
G. Democracy and Capitalism
Amendment to the United
G. Democracy and Capitalism
Amendment to the United
The US constitution was seen as very important because republican government had not succeeded very often due to an inability to limit majority power. It was written at a time when the science of politics developed by John Lock and others would help develop a document that would promote stability and control majority factions. Controls included Separation of powers/ authority among three branches of government, the legislature, the President, and the courts. Within the legislature power was again separated such that the Senate could stop a bill passed by the House of Representatives, the President could veto a passed Congressional bill, Congress could override said veto with a 2/3 vote, and the Supreme Court could stop the President and Congress by declaring a law unconstitutional. These checks and balances between the branches were to protect minority rights from factions.
Politically, the U.S. had a difficult beginning as the violence and anarchy surrounding the French Revolution made many Americans uneasy about their republican democracy. Historically, the Federalist and their active state liberalism ruled and then Jefferson and Jackson governed based on minimal state liberalism. Then Lincoln used a strong federal government to preserve the Union and it lasted until the end of reconstruction when limited government helped by the Supreme Court fostered the Gilded Age. The Progressivism Teddy Roosevelt and Windrow Wilson ruled with active state liberalism until the First Red Scare and unionism following WW I brought back minimal state liberalism. The Great recession allowed FDR to use active state liberalism to tame the Great Recession and while active government was slowed by a Second Red Scare and the Korean War, the Kennedy assassination in 1962's gave LBJ's the ability to use active state liberalism to pass The Great Society anti-poverty programs. A difficult 1970's because of Stagflation allowed Ronald Regan to blame big government and he returned to minimal state liberalism. Neither branch of state liberalism has controlled the 21st Century with society allowing a strong governmental response to 9/11 and then allow President Obama, a strong active state liberalism president, to pass Obamacare.
Federalist George Cabot of Massachusetts feared ..."the terrible evils of democracy," and felt Jefferson was unstoppable,..." From p368 of Thomas Jefferson: The Art of Power, 2012 a biography by Jon Meacham as summarized by Walter Antoniotti Democracy and a Republics are often interchangeably. Source
Does Current Political Economy Questions substantiate that democracy has not control government spending.
Editor's Note: Building a Democratic Republic is aninteresting study of the 250 years of trial and tribulations required to build our government. It is from Part 2 of Turning Points in American History covers these topics.
Instigators Finely Hit a Nerve With a 1773 Boston Tea Party
toured the U.S. and made some
Voter rules are again a
2015 political topic and equal rights
toured the U.S. and made some
Summary:We seek individual liberty, social justice and economic efficiency with a Democratic Republic that uses a constitution to protects the minority, a Supreme Court to enforce the constitution and an ever expanding electorate deciding who does what, when and how. This continually changing electorate both legally and in practice has led to a somewhat dynamic Republic of the United States
Voter rules are again a
2015 political topic and equal rights
VII. Politics in
the U.S. Democratic Republic
A. U.S Voting Rights Timeline
1. Primary Voting attempt to restrict in 2016
2. New-Voting Restrictions-2010-election
B. 20th Century U.S. Political Economy
C. Money in U.S. Politics Using 40 charts.
D Presidential Politics is a concise summary of Presidential Elections.
E. Presidential Courage depicts great presidents serving democracy.
F. The End Game for Democracy Bill Moyer's 3 minute video on all
aspects of public and private life.
G. A Republic No More Video 1:03 explores of U.S. Democracy and
the concept of a Republic.
H. Are representatives trustees representing the nation or are they
delegates representing their constituency?
I. Have you read the federalist papers of American-conservatism?
has student articles with a conservative view.
J. Our Republican Constitution podcast on concerning Judicial Review
and congressional power is a must for political science students
Four Horsemen 1:39 videois a collection of today's greatest sociological, political and economic voices that analyze and put into historical perspective the decisions and results of our economic and political systems.
States With New Voting Restrictions Since the 2010 Election
U.S. Political Economy
IX. Market System Capitalism and Political Economy Videos
Quiz on Economic Systems
A. Provided with answers from steponicseconomics
B. Exam Strategies + has comprehensive testing advise.
G. Course project/discussion
Editor's Note: To solve the problem of not enough income for the middle classes in the 1980's capitalism changed the name of Home Improvement Loans to Home Equity Loans. People were encouraged to immediately spend what had been a retirement nest egg. There is nothing wrong with this as long as people realize that they may be delaying retirement.
Is This Divergence an Economic or Political Issue?
Political Economy Controversies
version from Gutenberg is easily searchable by topic.
For Those Wanting to Improve Education
Educating the Class of 2030 for Employment and Creativity
Here is a visual version of the well-known cow based analogy of capitalism.
US Produces Most Per Capita
Voters Hire Politicians That Overspend and
Promise More in the Future at all levels of Government
Cheap Imports Allow Even More Consumption.
We Borrow on Home Equity for Current Consumption.
Yet Many Seem Dissatisfied?
|Market System Capitalism and Political Economy Videos|