1. Capitalism Communism Philosopher(s) and year Key Ideas Driving Force
Natural or Man made
Who determines key economic principles? The People or the Government?
Factors of Production
Price
Supply/Demand/Output
Wages
Views on incentive, consequences, goals
Overall economic policy
Views on Profit
Views on competition
Freedom
Inventions and improvements
Government influence

2. Capitalism-Free market
Communism-Command Economy
Philosopher(s) and year
Adam Smith – 1776 Wealth of Nations
Karl Marx Communist Manifesto
Key Ideas
Laissez-faire, Econ liberty= Econ progress, the invisible hand
Class struggle, haves vs the have not, redistribution of wealth
Driving Force
Profit, price, and competition
Government system
Natural or Man made
Natural laws of economics
Man-made, “fairness”
Who determines key economic principles? The People or the Government?
Factors of Production
People make decisions based on scarcity and alternative uses
Government makes decisions based on scarcity and alternative uses
Price
People make decisions based on scarcity and alternative uses
Government makes decisions based on scarcity and alternative uses
Supply/Demand/Output
People make decisions based on scarcity and alternative uses
Government makes decisions based on scarcity and alternative uses
Wages
People make decisions based on scarcity and alternative uses
Government makes decisions based on scarcity and alternative uses
Views on incentive, consequences, goals
Overall economic policy
Policy based on incentive and consequences
Policy based on man made goals and quotas
Views on Profit
Encouraged- driving force
Discouraged Those who make profit did so by taking advantage of others
Views on competition
Encouraged leads to advancement
Discouraged- shared resources
Freedom
Economic freedom leads to progress
Economic freedom leads abuses
Inventions and improvements
Incentive for profit leads to improvements
Lack of incentive stalls progress
Government influence
Hands off- let scarcity drive price, outputs, and the factors of production
Hands on- the system makes the decisions

3. Was Capitalism fair or unfair?
Was Communism Fair or unfair?
Which system is more likely to lead to improvements?
Which system is more natural? Explain
Which system is more of a man made creation? Explain
Which groups of people would Communism most appeal to and why?

4. In the United States we have a mixed economy.
Are society is based on free market principles, however over the years there has been an increase in government intervention in the economy.
Looking at our history and the current day find examples of Government interactions in the economy.
Wage and Price
Supply/Demand/output
Redistributing wealth
Competition
The use of resources
Note: I would think about the New Deal, the 1970’s, and our current day