Types of Government

by Sophia

 WHAT'S COVERED

In this lesson, you will learn about the nature and function of government. What do governments do,
and how much control do they have over our decisions—like whether we can remodel our home or
run a business? The answer depends on what type of government we have. We will investigate what a
government is and how its organization impacts its power. Finally, we will consider how governments
influence how we do our jobs, what we have to pay for, and other economic choices. Specifically, this
lesson covers:

1. Function of Government
Government affects all aspects of people’s lives. What we eat, where we go to school, what kind of education
we receive, and how our tax money is spent are all affected by government.

The term government describes the means by which a society organizes itself, and how it allocates that
authority in order to accomplish collective goals and provide societal benefits. Among the many goals that
governments around the world seek to accomplish are: economic prosperity, secure national borders, and the
safety and well-being of citizens. For example, governments establish local fire departments to keep people
safe from fires and other natural disasters (Figure 1).

Governments also provide benefits for their citizens. These benefits vary, but governments commonly provide
such things as education, health care, and infrastructure for transportation.

Over time, the functions of government can change. For example, some governments have begun to promote
equality to provide their citizens equal access to resources and ensure equal treatment under the law.

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 (Figure 1) A fire department ambulance rushes to the rescue in Chicago. Emergency medical services, fire
departments, and police departments are all paid for by the government through the tax base, and they provide their
services without an additional charge.

In this course, we will study government and the political system. But, what is a political system, and what do
we mean by politics? Put simply, politics is the process of negotiating who gets what and how. These
decisions are made not only by governments, but within businesses, universities, and even in families. Within
governments, politics is the process by which choices are made regarding how resources will be allocated,
and which economic and social policies governments will pursue.

In the United States, many different elected bodies are in charge of who gets which goods and services.
People elect representatives to city councils, state legislatures, and Congress. These bodies make and
implement laws. Government offices collect taxes and provide services.

 TERMS TO KNOW

Government
The means by which a society organizes itself and allocates authority to accomplish collective goals.

Politics
The process of gaining and exercising control within a government for the purpose of setting and
achieving particular goals.

2. Systems of Government
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Political scientists tend to classify governments according to who rules and how much power they exert over
the people.

2a. Who Rules

In a monarchy, one ruler—usually a hereditary ruler—holds political power. A monarch's power can be
absolute or limited by law. Absolute monarchs have unrestricted power. This form of government was more
common in the past. Today, kings and queens often rule along with an elected legislature that makes laws for
the country. In England, the monarch has very little power and mostly serves as a diplomat, representing the
country. In Jordan, the monarch has more power. For example, the king can appoint the members of the
Senate and the head of the top court.

In an oligarchy, a handful of elite members of society—often those who belong to a particular political party—
hold all political power. For example, in Cuba and China only members of the Communist Party are allowed to
vote or hold public office, and the party’s most important members make all government decisions.

A democracy is a government in which political power—influence over institutions, leaders, and policies—
rests in the hands of the people. The United States is a republic, or representative democracy. In a
representative democracy, the citizens do not govern directly. Instead, they elect representatives to make
decisions and pass laws on behalf of all the people.

For example, in the United States citizens vote for members of Congress, the president and vice president,
members of state legislatures, governors, mayors, and members of town councils and school boards to act on
their behalf.

Most representative governments favor majority rule, in which the opinions of the majority of the people have
more influence on government than those of the minority. If the number of elected representatives who favor
a proposed law is greater than those who oppose it, the law will be enacted. However, representative
governments like the United States also protect minority rights, or the rights of individuals who have views or
identities not shared by the majority.

 TERMS TO KNOW

Oligarchy
A handful of elite members of society who hold all political power.

Democracy
A government in which political power—influence over institutions, leaders, and policies—rests in the
hands of the people.

Political Power
Influence over institutions, leaders, and policies.

Republic
A representative democracy.

Representative Democracy
A form of government in which voters elect representatives to make decisions and pass laws on
behalf of all the people, instead of allowing people to vote directly on laws.

Majority Rule
A fundamental principle of democracy that states the majority should have the power to make
decisions binding for the whole population.

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 Minority Rights
Protections for those who are not part of the majority.

2b. Limited and Unlimited Government (How Much Power)

Citizens enjoy varying degrees of freedom within different types of government. In representative
democracies, citizens often enjoy a great deal of individual freedom, such as the right to vote and freedom of
speech. Democracies have limited government. However, this is not the case in other types of governments.

Some nondemocratic societies are totalitarian in nature, which are societies where the government is all-
powerful. Under totalitarianism, the government controls all aspects of citizens’ lives and tries to shape how
they behave and even how they think. The government does not allow political criticism or opposition.
German-Jewish philosopher Hannah Arendt coined this term to describe the governments of the Russian
communist party and the German National Socialist (Nazi) party, each of which killed millions of people while
repressing opposition. North Korea is a modern-day example of a totalitarian government.

Although Nazi Germany and North Korea are clearly totalitarian, most governments lie along a continuum from
free to unfree (Figure 2). 2021 marks the sixteenth consecutive year that shows an overall decline in freedom
at the global level. Governments are becoming less free.

(Figure 2) An organization called Freedom House ranks countries based on individual rights, free elections, control
of the media, and other factors. The Freedom Map 2021 shows free countries in yellow, unfree countries in purple,
and partially free countries in green.
Source: Freedom House

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  TERMS TO KNOW

Limited Government
A form of government in which the rights of the people limit the powers that government can exercise.

Totalitarianism
A form of government where government is all-powerful.

3. Political versus Economic Systems

Sometimes governmental systems are confused with economic systems. This is because certain types of
governments are closely related to certain types of economic systems.

3a. Capitalism
The economic system of capitalism in Western Europe and North America developed at roughly the same
time as modern ideas about democratic republics. Capitalism is a system in which there is private ownership
of the means of production for profit. Between the 17th and 18th centuries, the idea of liberty became an
important concept. According to John Locke, an English political philosopher of the seventeenth century, all
people are born equal and have natural rights to life, liberty, and property. From this came the idea that
people should govern themselves through elected representatives and not a king. Similarly, Adam Smith, a
Scottish philosopher of the 18th century, believed that governments should not decide who gets to form
businesses or sell goods. Smith and others believed in free trade, an idea that formed the basis for capitalism.

Representative government and capitalism developed together in the United States and many Americans
tend to equate democracy, a political system in which people govern themselves, with capitalism. However,
democracy and capitalism do not necessarily go hand in hand.

In theory, both a democratic government and capitalism promote individualism and the freedom to act as one
chooses, instead of being controlled, for good or bad by government. However, capitalism can generate
inequalities that make it more difficult for everyone to fully participate in the political system. For example,
people from low-income households usually do not have the money and time needed to run for higher
elected offices, such as Congress.

 TERM TO KNOW

Capitalism
An economic system in which individuals and corporations, not the government, own the principal
means of production and seek profits.
3b. Socialism and Communism
Socialism is an alternative economic system. In socialist countries, the government owns many of the means
of generating wealth, such as factories, large farms, and banks. The government collects much of the wealth
and then redistributes it to citizens. In socialist countries, the government also usually owns and controls
utilities such as electricity, transportation systems like airlines and railroads, and telecommunications systems.

Communism is the form of socialism in which the government owns all the means of generating wealth. In
communist countries, the government is an oligarchy—only members of a certain political party or ruling elite
can participate in government. For example, in China, the government is run by members of the Chinese
Communist Party.

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Some other countries have adopted some socialist policies. For example, France and Israel were once
considered socialist democracies. They have a representative democracy but provide free public healthcare
and strict laws to protect workers. The government also still owns major companies in key industries, such as
energy.

Many representative democracies also have programs based on the socialist idea of redistributing wealth to
provide for all citizens. The United States has a social welfare system that provides healthcare services to low-
income households, retirement income to the elderly, unemployment benefits to the unemployed, and
otherwise supports citizens in need.

 TERMS TO KNOW

Socialism
An economic system in which the government owns some of the means of generating wealth.

Communism
An economic system in which the government owns all the means of generating wealth, such as
factories, large farms, and banks.

3c. Economic Restrictions on Capitalism

Most countries with representative governments place restrictions on free trade, redistribute income through
taxation for public goods and services, and even own some companies or industries. These policies help the
government protect its citizens and promote well-being and prosperity for all its citizens.

Even capitalist countries, such as the United States, place economic restrictions—called regulations—on
industries. For example, the Food and Drug Administration is responsible for maintaining the safety of food
and medicine. It places regulations on fast food restaurants, on pharmacies, and on many other industries. In
this way, the government functions to protect its citizens but at the cost of some limitations on the economic
freedom of individuals.

 SUMMARY

In this lesson, you learned that the function of government in society is to protect citizens and provide
goods and services. The systems of government we have depend on who rules and how much
power they have over us. Most countries today have some form of representative government.
Different types of political systems tend to adopt different types of economic systems–whether
capitalism, socialism, or communism.

Source: THIS CONTENT AND SUPPLEMENTAL MATERIAL HAS BEEN ADAPTED FROM OPENSTAX
“AMERICAN GOVERNMENT 3E” ACCESS FOR FREE AT openstax.org/details/books/american-government-
3e

 TERMS TO KNOW

Capitalism
An economic system in which individuals and corporations, not the government, own the principal
means of production and seek profits.

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 Communism
An economic system in which the government owns all the means of generating wealth, such as
factories, large farms, and banks.

Democracy
A government in which political power—influence over institutions, leaders, and policies—rests in the
hands of the people.

Government
The means by which a society organizes itself and allocates authority to accomplish collective goals.

Limited Government
A form of government in which the rights of the people limit the powers that government can exercise.

Majority Rule
A fundamental principle of democracy that states the majority should have the power to make decisions
binding for the whole population.

Minority Rights
Protections for those who are not part of the majority.

Oligarchy
A handful of elite members of society who hold all political power.

Political Power
Influence over institutions, leaders, and policies.

Politics
The process of gaining and exercising control within a government for the purpose of setting and
achieving particular goals.

Representative Democracy
A form of government in which voters elect representatives to make decisions and pass laws on behalf
of all the people, instead of allowing people to vote directly on laws.

Republic
A representative democracy.

Socialism
An economic system in which the government owns some of the means of generating wealth.

Totalitarianism
A form of government where government is all-powerful.

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