CAPITALISM VS SOCIALISM MARKETING I

WHAT IS CAPITALISM? Capitalism is an economic system based on the private ownership goods and services. Characterized by a free competitive market and motivation by profit. In other words, an economic system in which money is used to make more money.

WHAT IS CAPITALISM? A system where there are three main classes: middle, upper, and poor. The upper class, owned the factories and businesses (big businesses like Homedepot, Walmart, Target). They have a lot of leisure time and after paying all of their bills and investing in other ventures, there would still be more than enough money for them to live very well. Middle class…They are small business owners, lawyers, doctors, accountants, teachers, nurses, etc....They worked very hard to serve the needs of their customers. They have leisure time but not as much as the upper class would The final group was the poor. They have very little leisure time; most were worried about putting food on their table.. They make little money; therefore, anything they did for “fun” would have to be very inexpensive or free. Unfortunately, the lack of money also increased the amount of crime. Stealing food or clothing seemed an easier way to make it.

WHAT IS SOCIALISM? Socialism is a political theory or system in which the means of production and distribution are controlled by the people and operated according to equity and fairness rather than market principles. In other words, a system of government in which owners share profits with workers. Socialist countries today: Not every country is purely socialist ChinaDenmarkFinlandNetherlandsCanadaSwedenNorwayIreland New Zealand Belgium

WHAT IS SOCIALISM? People that believe in socialism see a separation in the classes (Lower, middle, higher classes) and felt that this was not the way the economy should function. Socialists argued that most of the wealth should be divided equally among all the people. They believed that making the current classes equal would not only provide equal living conditions, working conditions, and wages, but would also ideally eliminate crime. Socialists’ ideal perspective on this economic system was that if everyone is equal then there would not be any theft, murder, embezzlement, and other crimes that stem from great inequalities that arise between two classes that are so separate.

ADVANTAGES OF CAPITALISM? Individuals choose what to consume, and this choice leads to more competition and better products and services. Goods and services produced based on demand create incentives to cut costs and avoid waste. Total freedom to live the way you want to, Freedom of ownership

DISADVANTAGES OF CAPITALISM? An economy based on the market of consumers and producers is invariably going to experience growth and decline. Inequality of income. Social class structure is wide spread. The Rich get richer and the poor get poorer.

ADVANTAGES OF SOCIALISM? Production is controlled by a central planning authority with a particular goal in mind Less inequality of income because wealth is distributed equally Ideally All share equality

DISADVANTAGES OF SOCIALISM? Government regulation/control of all aspects of business, wealth and jobs

CAPITALISM VS SOCIALISM Today we are going to take a deeper look into the differences, advantages and disadvantages of socialism and capitalism. We will also look into how each system effects businesses, business owners, works, and supply & demand. Would it be better to live in a society where everyone was given a share of profits by the owner of a company, made the same amount as everyone else, making all people equal OR Would it be better to live where you can choose what you want to do, everyone makes different amounts of money, and not everyone can afford the same things as everyone else? Explain why you choose your answer