1. Political Systems and
Economic Systems
Thanks Mr. DeLoughry
World Geography
Eisenhower Middle School

2. Political Systems
• Countries can have a
variety of political
systems.
• They include:
 Direct Democracy
 Representative
Government
 Monarchy
 Dictatorship

3. Direct Democracy
• Sometimes called “pure
democracy”
• People gathered to vote
on laws in ancient Athens
and Rome.
• Very difficult to do in
large numbers. People
may not know much
about the issues they vote
on.
• States and towns in the
U.S. use ballot questions
to get the public’s vote on
important issues.

4. Representative Government
• Often called a “republic.”
• The people elect
representatives to make
the laws.
• Citizens must pay
attention to vote smartly,
but do not need to be
experts on every law.
• Examples are U.S, Canada,
Mexico, United Kingdom
U.S. House of Representatives

5. Monarchy
• Ruler inherits the throne
by birth.
• Citizens do not have a
right to decide laws.
• Fewer monarchies in the
last 100 years. Jordan,
Kuwait, and Saudi Arabia
are examples.
• Others, such as United
Kingdom, Norway,
Sweden, and Japan, are
now democracies with
monarch as ceremonial Jordan’s King Abdullah
leader.

6. Dictatorship
• One person or one party
holds total power to
govern.
• Citizens have few rights
and don’t make decisions.
• Dictators sometimes call
themselves “president” and
hold elections, but it is just
for show because no one
else is allowed to run.
• Examples: Cuba, North
Iraq’s Former Dictator Korea, Libya, Egypt, China
Saddam Hussein

7. How do dictators keep power?
• Dictators can use their
armies to arrest or attack
protesters.
• Dictators often promise a
better life, especially for
the poor.
• Many countries have
never had democracy, so
they are used to having
dictators.
• Some dictators get
support from other Fidel Castro of Cuba
countries, such as Soviet
Union’s support for Fidel
Castro in Cuba.

8. What is economics?
• The study of how goods
and services are
produced, distributed,
and consumed.
• The people who make
goods or services are
called “producers.”
• The people who buy
goods or services are
called “consumers.”

9. 3 Different Economic Systems
1. Traditional
2. Free Enterprise
3. Command

10. Traditional Economy
• People find food for
themselves and trade
for needed goods.
• No companies or
governments involved
• This system is found
among herders or small
farmers

11. Free Enterprise
• Sometimes called
“capitalism” or “market
economy.” Ex. U.S.A.
• People own companies
and decide what to
produce to make
consumers happy.
• Business owners can earn
big profits or can lose
their money if a business
fails.
New York Stock Exchange
• Some businesses sell
stock to get more capital
to invest.

12. Command Economy
• The government makes
economic decisions
about what should be
produced, how much it
should cost.
• Two types of command
economies are socialism
and communism.
Workers arrive at a factory in
the old Soviet Union in 1929.

13. Command Economies
• In socialism, the government
runs some industries, such
as oil, and uses profits to
pay for health care,
education. Ex. Venezuela
• In communism, the
government runs all
industries, owns all
property, sets wages, and
prices, and people must do
as they are told. Ex. North
Korea
Venezuela’s President
Hugo Chavez

14. Communism vs. Capitalism
• Capitalists say that people have
no reason to do a good job in
communism because everyone
gets the same pay. Products
are boring and poorly made.
• Communists say that capitalism
is unfair to the poor because
people at the top of the
company get rich while
workers get low wages. They
also say capitalists wipe out
little companies and destroy
the environment to get money.

15. Communism vs. Capitalism
• The Cold War from 1945-
1991 between U.S. and
Soviet Union was based on
getting nations to line up on
the communist side or
capitalist side.
• Today Russia allows some
capitalism.
• Communist China also
allows some capitalism. Factory workers in China

16. Putting Politics & Economics
Together
• Communist countries have been dictatorships in
which leaders have tried to control all aspects of the
country.
• But not all dictators are Communists. Some want
capitalist companies to come in and create jobs Ex.
Batista in Cuba before Castro.
• Democracies are sometimes capitalist and sometimes
socialist. Voters may elect a leader who promises to
help the poor through socialism. Or voters may
prefer capitalism as a way to create more jobs.