Examples of power
To look at it another way, while the legislative branch creates the laws, the executive branch is in charge of running the government, while the judicial branch is responsible for administering justice.
The three powers mentioned above are those that usually make up the state in modern countries. However, in absolutist monarchies, for example, all powers are centralized in the king.
Under a parliamentary regime, the election of the president does not emanate directly from the people, but from the legislative branch. The opposite is the case in a presidential regime, such as the United States or several Latin American countries, where the president is elected by popular vote.
Examples of power in everyday life
Human beings have always sought to congregate, first in family groups, bands or clans, and then in organizations of varying degrees of complexity. States are one of these historical forms of coexistence, with specific characteristics, and have preponderance in the modern world.
The State is a political concept referring to a form of social organization with sovereign institutions that regulate the life of a certain community of individuals within the framework of a national territory.
Modernly, Carré de Malberg (1988) defines it as “a human community, established on its own territory, possessing an organization which results for this group, as regards relations with its members, in a supreme power of action, command and coercion”.
This definition has its roots in 17th century Europe, as a result of the peace treaties known as the “Peace of Westphalia” (1648). This was the first modern diplomatic congress that structured the European order based on the concept of national sovereignty and territorial integrity as the foundation of the States, in opposition to feudal conceptions. This model is the one that exists to this day, being them the main actors of the international community.
Individuals, companies or countries use their resources to satisfy the needs they have. The relationship between the price paid for them and the level of resources possessed is known as purchasing power.
It is important to keep in mind the basic idea behind this definition: the more needs we can cover with a given amount of money, the more purchasing power we have. To do this, we must define the situation in which we find ourselves or, in other words, the value of the currency with which we are buying.
From the above we can see that the measurement of purchasing power is a good tool when it comes to establishing comparisons between subjects from different countries or from different periods of time. Through this comparison, it is possible to distinguish the economic level of individuals from the past and the present, or of other individuals who share the same time, but in different countries with their corresponding currencies.
The costs of living in a country with a devalued currency affect purchasing power. This indicator, moreover, is not only measured by the value of a good, but a basket of goods, usually primary goods (basic necessities), is created in order to establish a logical comparison.
What is power
There are terms that are used very often when talking about economic or financial issues and although they are treated very naturally, sometimes the meaning may seem a little confusing or even unknown, such is the case of “purchasing power” that directly affects the things you can buy with your savings.
The generalized increase in prices over a given period of time is known as inflation. This means that, as a result of inflation, products and services will increase in price and consumers will have to adapt to the new costs if they want to continue consuming as usual. If they cannot do so, their money loses value and their purchasing power decreases.
To make your savings worth more, the challenge is to find a way to increase them above the effects of inflation; to do so, research ways to generate extra income or make an investment that will make your money grow.