By definition economic life includes the work we do, what type of economic organization we belong to, why we do it, and the measure of success attained as shown by wealth, property, income, and the occupation itself.
Traditionalism reperesents the type of economic motivation that sanctifies the past by preserving a certain practice because it has always been that way. Its opposite, economic, economic rationality, represents the type of economic motivation that embraces change and development, such as in the methods of production.
Economic Systems
All economic systems comprise three basic sectors. The primary, secondary, and tertiary sectors of the economy involve the different ways of producing goods and services and selling them for a profit. The primary sector is involved in the extraction of raw materials and natural resources. The secondary sector is involved in turning the raw materials acquired through primary production into the manufactured goods we use, such as furniture and cars. The tertiary sector (or service) is involved in providing services in such areas as health, education, welfare, and entertainment. It consists of the kinds of assistance or service that people offer.
Economic Models
Capitalism in its purest form is regulated by self-interest and market competition. Self-interest leads consumers to purchase goods and services they desire at the lowest possible price. Market competition regulates the economy by ensuring that businesses produce goods or services wanted by consumers at prices consumers are willing to pay. In a purely capitalist system, prices are regulated by supply and demand. The law of supply states that producers will supply more products when they can charge higher prices and fewer products when theyt must charge lower prices. The law of demand states that consumers will demand more of a product as the price of the product decreases. On the other hand, consumer demand for a product decreases as the the price increases.
In a pure socialist system, economic activity is controlled by social need and by the government through central planning. Need is not determined by consumer demand, but rather economic planners in the central government. This means that there is no market competition in regulating supply and demand.
The Political Institution
Max Weber differentiated between three types of authority. He devided them according to how the right or power to command and the duty to obey are interpreted. Traditional authority is based on long-held and sacred customs. Rational-legal authority stems form within the framework of a body of laws that have been duly enacted. Charismatic authority is based on the extraordinary, uncanny, and supernatural powers or abilities that have been associated with a particular person. Typically rational-legal authority, which is legally circumscribed by rules and regulations, is found being exercised within modern formal organizations.
Forms of government depend upon the type of relationship that exists between the ruler and the ruled. The types of government are as follows: authoritarian, totalitarian, and democratic. Authoriatarian forms of government are ones in which rulers tolerate little, if andy, opposition to
Who rules America?
Sociologists who generally examine this question adopt one of two models: the power-elite or the pluralist model. The power-elite was presented by C. Wright Mills, stated that political power is exercised by and for a priviledged few. G.William Domhoff came to a similar conclusion. While the ruling class is made up of 1% of the population, they take up a large portion of high ranking jobs in the political, and economic world. The pluralist model, states that the political process is controlled by interest groups that compete with one another for power. Thus, the power is in interest groups not the hands of a small few.