1. CAPITALISM/COMMUNIUSM SOCIALISM
ECONOMIC SYSTEMS
CAPITALISM/COMMUNIUSM
SOCIALISM

2. THREE LAWS THAT WILL GET YOU THE BEST DEAL
CAPITALISM
Adam Smith ( )
Capitalism
Greed is Good
THREE LAWS THAT WILL GET YOU THE BEST DEAL
THE LAW OF SELF – INTEREST
THE LAW OF COMPETITION
THE LAW OF SUPPLY AND DEMAND

3. THE LAW OF SELF INTEREST
People act for selfish reasons. They work for their own good, not for their neighbor’s good. Bakers do not bake bread out of concern for hunger.

4. THE LAW OF COMPETITION
In a free market, every baker competes with other bakers. To stay in business each baker must try to make bread more efficiently and sell it at a lower price than rival bakers.

5. THE LAW OF SUPPLY AND DEMAND
If the supply of Bread exceeds the demand, the price drops to attract more customers. If there is a shortage of bread, the baker will charge more!

6. Laissez Faire

7. COMMUNISM KARL MARX (1818-1883) IT’S NICE TO SHARE
Each Man According to his Ability, Each Man According to His Need

8. Step by step guide to Total Equality
A few rich persons live in great wealth, while most workers live in comparative poverty.
The way to rectify this injustice is to set up a socialist system: that is, a system where the means of production are owned by the government rather than private individuals.
In most cases, the only practical way to establish this system is by violent revolution.
To preserve this socialist system, the dictatorship of the Communist party must be maintained for a considerable time.

9. WORKERS
OF THE
WORLD UNITE

10. SOCIALISM
People should collectively own and operate the means of production
Believe in the basic goodness of human nature
Utopianism – Ideal Society
Robert Owen established a model community
New Harmony
New Lanark

11. New Lanark, Scotland
This is a view of New Lanark, Scotland, as it was when Robert Owen was the owner of the cotton mills, the largest such operation in Great Britain. The rightmost building housed a School for the Children, and the foremost 3-storied building was a School for the Formation of Character. The other five large buildings housed most of the cotton operations.

12. SOCIALISM
The quick 'n' easy way to remember the difference between Socialism and Communism is: Socialism is "from each according to their ability, to each according to their DEEDS," whereas Communism is "from each according to their ability to each according to their NEEDS."
Socialism is the stage between Capitalism and Communism

13. SOCIALISM
It builds upon the previous system (Capitalism) by nationalizing the "means of production" (i.e. corporations, resources, banks, etc.), but not by making everyone equal. In other words, people will be paid wages based on several factors (social need, difficulty, amount of schooling required, etc.), so not everyone will make the same wage

14. Comparison of Economic Systems
ITEMS TO BE COMPARED
CAPITALISM
SOCIALISM
COMMUNISM
Why did the economic system develop?
Industrial Revolution
Injustices of I.R.
Work Conditions
Who was the Founder of the System?
Adam Smith
Robert Owen
Jeremy Benthem
Karl Marx
Who owns the means of Production?
People
People and Govt.
Govt. (all the people are equal)
How are prices and production determined?
Supply and Demand
Supply and Demand /
Govt.
Government
Is there private business/ property?
Yes
Small Businesses No
What is the Role of the Government?
Hands Off
Laissez-Fairre
Owns Large Businesses
Owns everything
Benefits of the System
Can get Rich
Incentive Based
Protected by Govt./ with incentive
Protected by Govt.
Everyone is equal
Drawbacks of the System
Can go Broke, Homeless, lose everything
High Taxes
No Incentive, Can’t get rich.