Sociology & You

Chapter 13: Political and Economic Institutions

Chapter Overviews

Power and Authority Although some people might use the words power and authority interchangeably, there is a subtle distinction between the two. Power is the ability to control the behavior of others, even against their will, while authority is power accepted as legitimate by those subject to it. Political systems can be based on three types of authority: charismatic, traditional, and rational-legal. Democratic, totalitarian, and authoritarian are types of political systems; they are distinguished by the degree of power exercised by rulers and the extent of freedom allowed the people who are ruled.

Political Power in American Society In the United States, political participation is demonstrated through voting, which is limited by the range of candidates. In American society, two major models of political power are evident—elitism and pluralism. The functionalist perspective believes that pluralism best describes the distribution of power in America. Elitism is based on the conflict perspective.

Economic Systems A variety of economic systems are in place in countries throughout the world. Capitalism is founded on the principles of private ownership of property and the pursuit of profit. Socialism is based on the belief that the means of production should be controlled by the people as a whole. Examples of pure capitalism or pure socialism are rare, however—most nations of the world fall between the two extremes by practicing mixed economic systems.

The Modern Corporation Sociologists study corporations because of their great importance in modern economic systems. Corporations—especially multinationals—have grown very powerful. Some even boast sales volumes that exceed the annual economic output of some industrialized nations. Corporate managers affect domestic political decision making and influence the political and economic institutions of countries around the world.

Work in the Modern Economy A modern society is composed of three basic economic sectors—primary, secondary, and tertiary. The balance of power among the three changes over time. Workers today face a changing occupational structure, with such trends as downsizing and contingent employment becoming more prevalent. Some evidence indicates that these trends are having negative consequences.