Understanding Economic and Political Systems: Key Concepts

Understanding Economic and Political Systems

Inflation - A continued rise in prices. A deflationary economy - is a steady and general decline in the price level. Hyperinflation - Prices rise over 100% in a year, a breakdown of the system. Overproduction - Excess production or production in excess of market demand. Speculate - To do business, usually by purchasing goods whose price is expected to rise short-term, with the sole purpose of selling at the right time to make a profit.

The Stock Market Crash and the Great Depression

The Stock Market Crash was the most devastating fall in the history of the U.S. stock market, taking into account the full scope and the length of its aftermath. The Great Depression originated in the United States after the stock market crash of October 29, 1929 (known as Black Tuesday), but quickly spread to nearly every country in the world.

The New Deal

The New Deal was an interventionist policy created by Franklin D. Roosevelt to combat the effects of the Great Depression in the U.S. This program was developed between 1933-1938 with the aim of reforming the financial markets and revitalizing a wounded U.S. economy since the Crash of '29 by unemployment and bankruptcies.

Consumer Society

Consumer society designates the type of society that corresponds to an advanced stage of capitalist industrial development and is characterized by mass consumption of goods and services, available through mass production thereof.

Political Systems

Democracy - A type of political regime based on the representation of people through an elected parliamentary system with respect to individual assets and reflected in a constitution. Dictatorship - is a form of government where political leaders tend to exercise power without regard for institutions and legislate by decree. Fascism - is an ideology and a political movement that emerged in Europe between the wars (1918-1939). The political project of Fascism is to establish a totalitarian state with uncorporativismo and a command economy, while its intellectual base poses a submission of reason to the will and action. Autarky - is a term commonly used in the economy that indicates the status of persons, sites, mechanisms, corporate, industrial systems and nations struggling for self-catering or reject any foreign aid. The Popular Front is the name of electoral coalitions between parties who expressed a sensitivity Marxist-Leninist and fascist ranging from areas of middle class people's forces working base. Totalitarian political system: a political regime of political dictatorship in which there is a one-party system, lack of individual rights with heavy censorship and state intervention on all orders of privacy.