1 Dale Story POLS 2311 CLASS OUTLINE--FIRST EXAM I. INTRODUCTION a. Approach of the course i. Comparative: will examine the U.S. system along with other systems ii. Critical analysis: will expose students to diverse perspectives, including those that are quite critical iii. Political economy: recognizes the juxtaposition of the economic sphere and the political sphere iv. Focus on policies & current events: we will look at outcomes and significant events that are happening currently b. Politics and political culture i. Politics includes power, influence, legitimacy, authority, rewards (who gets what, when, how). Political power = monopoly of violence? ii. Political culture is the basic orientation of the citizens toward their political system. In the U.S., this is a general consensus on the abstract principles of democracy (this country is a democracy and the citizens prefer that). But reservations are found on specific and concrete issues. The elites have a broader commitment to concrete manifestations of democracy than do the masses. c. Three perspectives on division of power i. Democracy 1. Definition: popular sovereignty, political equality, popular consultation, and majority rule (with minority rights) 2. Prerequisites for democracy: education and income (individual and aggregate levels) 3. Examples of repression and/or lack of democracy a. 3/5th Compromise b. Slavery c. Electoral College? d. Lack of universal suffrage e. Alien and Sedition Acts of 1798 f. Lincoln’s suspension of due process and use of military law g. “Red scare” roundup (1919-20) of suspected Bolsheviks h. Japanese-American internment in World War II i. McCarthyism in the 1950s ii. Elitism 1. Defining aspects a. Society is divided between elites and masses b. Elites are few and dominate power c. Policies reflect elite values d. Elites share a broad consensus on major issues and values. Disagreement occurs only on minor issues. e. Mobility is slow at best f. Big business is most important interest group g. Public pressure is seldom successful 2. Michel’s iron law of oligarchy. All political organizations result in a self-perpetuating elite. Even the most allegedly democratic and/or those representing the underprivileged are prone to elite dominance 3. Mill’s power elite a. Three levels of power: power elite, middle levels, and masses. b. Critical decisions are made by power elite composed of top political officials, top corporate executives, and the military leaders. c. These three spheres are interlocked in four ways: shared objectives, overlapping career patterns, similar economic and educational origins, and social interactions. 4. Evolution of U.S. elites2 a. Hamilton and the Federalists--Secretary of Treasury under Washington—statute at Dept. of Treasury—favored central government and aided business—stimulated commerce and industrial growth—through 1810. b. Jefferson and the Anti-federalists (Democratic-Republican)—Southern planters, landowners, and local elites opposed Hamilton’s strong, central government—Titular head was Thomas Jefferson (elected President in 1809). God forbid we should ever be twenty years without such a rebellion. Through 1820s. c. Rise of Western elites—Personified by President Andrew Jackson. Social mobility. New elites. Emphasis on self-determination and individual initiative. Harbinger of manifest destiny and the westward expansion. Favored abolition of the Electoral College. Through 1860s. d. Elite cleavage—Civil War. Greatest division between elites in U.S. history. Much more than slavery. Northern elites were merchants and industrialists who wanted free labor (mobile and contractual) and protective tariffs (to protect the new domestic industries). Southern landowners and plantation owners were dependent on slave labor (tied to the plantation) and free trade (exports of cotton, etc.) Future of the West. Secession and “states’ rights.” Through late 1800s. e. New industrial elites—Social Darwinism, entrepreneurs, and the masses. Survival of the fittest. Period of greatest dominance of big business. Industrial revolution. High tariffs and less government regulation. f. Liberal establishment 5. Positions of power a. Governing elites i. Yale, Harvard, Columbia ii. Prestigious law firms iii. Prior administrations iv. Executives of GM, Ford, Merrill-Lynch, Goldman-Sachs, etc. b. Corporate elites i. WalMart has annual revenues greater than 90% of the countries in the world. 100 corporations control over 50% of industrial assets—top 5 control 10%. 50 banks control almost 50% of banking assets (most in New York). Petroleum companies well-represented in top 50. iii. Pluralism 1. Defining aspects: policies result from bargaining and compromise; elite competition (countervailing centers of power); citizens exert influence by choosing among competing elites in elections; multiplicity of groups; no single elite dominates 2. Differs from Democracy: decisions made by elite interaction (not individual participation); tendency toward oligarchy; key political actors are leaders or organizations (not individuals). 3. Differs from Elitism: competition among elites; bargaining and compromise; choices in elections, multiplicity of groups. II. POLITICAL ECONOMY a. Interrelations between politics and economics—politics affects economics (most political decisions and policies are focused on economic outcomes), and economics affects politics (success or failure in elections) b. Capitalism i. Five characteristics: industrial; market economy; wage labor; profit orientation; periodic crises ii. Capitalism as an ideology—accepted as a given; anti-capitalism, socialism, communism, and the like are rejected automatically. c. U.S. political economy i. MNCs and large banks—few in number, but each entity accounts for a disproportionate slice of assets, profits, etc.; larger than some nation-states; global; lack of competition (lack of risk); concentrated in key sectors; very cooperative 1. Fortune 500, by revenues—for comparison, the average Gross National Income (World Bank data) for over 170 of the most significant countries in the world is $343,103 mn.3 Thus, both Exxon and Walmart have higher annual revenues than half the countries in the world. 2. World top 100 ii. Competitive sector—much larger in number, but smaller in size of each establishment;