Capitalism versus Socialism

Capitalism Socialism Private ownership of property & means of production The community or state owns property & the means of production Means of production: refers to physical, non-human, inputs used in production including factories, machines, tools and natural resources – TOOLS NECESSARY TO RUN AN INDUSTRY

Capitalism Socialism People follow self-interests People cooperate for good of all Law of Self-Interest: As a human being, you’re going to do what’s good for you; not necessarily what’s good for the community…

Capitalism Socialism Businesses compete for consumer’s money Believe capitalism takes advantage of the worker Pizza Example: Domino’s v. Papa John’s v. Pizza Hut

Pizza Anyone? Dominos Pizza Papa John's Pizza Pizza Hut Pizza

Capitalism Socialism Businesses try to produce goods/services that are better & less expensive than competitors’ The community or state must act to protect workers and consumers

Capitalism Socialism Consumers compete to buy the best goods at the lowest prices Socialists believe that capitalism creates an unequal distribution of wealth Examples: Amazon, eBay, etc.

The Ultimate Price? The Ultimate Price?

Capitalism Socialism Consumer competition affects what businesses are able to sell Rather than competition, goods should be distributed according to each person’s need Current Example: Toyota

Avalon (2005-2010) Camry (2007-2010) Corolla (2009-2010) Highlander (2008-2010) Matrix (2009-2010) Prius (2004-2010) RAV4 (2009-2010) Sequoia (2008-2010) Tacoma (2005-2010) Tundra (2007-2010) Venza (2009-2010)

Capitalism Socialism Gov’t SHOULD NOT interfere in the economy Gov’t SHOULD regulate the economy to protect workers & consumers

Capitalism v. Socialism According to Karl Marx the economy is a major force for change Change generally occurs through class struggle The “HAVES” v. the “HAVE-NOTS”

Pharaohs, priests, royal families, etc. Slaves, peasants Time Period The “Haves” “Have-Nots” Egypt Pharaohs, priests, royal families, etc. Slaves, peasants India Upper castes: priests & rulers Lower castes: servants & slaves

Middle Class (Bourgeoisie) Factory workers (Proletariat) Time Period The “Haves” “Have-Nots” Middle Ages Nobles, landowners Peasants, serfs Age of Industry Middle Class (Bourgeoisie) Factory workers (Proletariat)

Capitalism v. Socialism Throughout history the “HAVES”: Control politics & government Create & control culture

Capitalism v. Socialism As a result of this influence on society the “HAVES” have historically kept their position on top of the social structure

Some Recent Statistics It has been suggested that the recent financial crisis has led to an increase in support for Socialism in the United States… Statistics…

Some Recent Statistics 53% of American adults over the age of 30 believe CAPITALISM is better than SOCIALISM Adults under the age of 30 are divided; 37% CAPITALISM; 33% SOCIALISM; 30% UNDECIDED

Capitalism v. Socialism Pure Communism in Marx’s Vision: ALL “HAVES” & NO “HAVE-NOTS”