8. 3 basic Economic Systems
Capitalism
Socialism Communism

9. Capitalism, Socialism, and Communism

10. Capitalism Private Ownership Profit Motive Free Enterprise
Market Economy
Competition

11. Too much Capitalism Results: Profit motive strengthens selfishness
Loss of community values of cooperation
Free Market allows rich to accumulate without responsibility to community (Multinational Corporations).

12. What is Capitalism? Accumulation of factors of production
Productive labor (work for wages/become productive/produce more/ more accumulation of financial capital and capital)
Profits are the motivational factor to production and wages.

13. 3 Basic Freedoms Capitalism Depends On
Private property- we are protected by our Constitution to own property.
Private enterprise- we can go into business if we desire.
Freedom of choice- jobs, school, businesses, production, consumption,

14. Five Features of FE Economy
Private Property – bank balances, dogs, houses, gardens, tools, earth’s minerals, Property represents Wealth
Economic Freedom –(political freedoms) buy any good, start a business, use technology, invest, quit your job
Economic Incentive –better life, work harder, go to school, receive rewards for work- punishments also
Competitive markets –supply/demand/individual preferences.Exercise choice. Markets and prices*** key
Limited Role of Government –2 roles (rule-maker, and umpire).Allows individuals equal opportunities

15. The Birth of Socialism
Socialism – system in which the people as a whole rather than private individuals own all property and operate all businesses.
Socialists claimed that industrial capitalism had created a large gap between the rich and poor.
Socialists cared less about individual ownership rights, and more about the interests of society.

16. What is SOCIALISM?
State ownership of means for producing goods and services.
A Socialist economy has 3 basic characteristics:
1.State owns major factors of production
2.Central planners determine many of the
basic processes
3.There is an attempt to distribute income equally.

17. MARXISM
Dictatorship would rule working class-become central planners- making all economic decisions.
Through socialism people’s material and spiritual well-being would improve. A true classless society would come into existence.
All property would be owned collectively
All people would work to the best of their abilities to produce goods and services.
People would consume only what they need
People would worship the government.

18. What is communism? Economic system.
Believes in collective (group) ownership and a planned economy.
The theory is that everybody pools their resources and labor to evenly distribute everything.
Karl Marx is “the” communist.

19. Communist Manifesto Abolition of property Heavy, progressive taxes
Abolition of inheritance
Confiscation of property of all emigrants and rebels
Central banking
State-controlled communication and transportation
State-controlled education of the children

20. All economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party.
Government plays bigger part to control the life of the citizens. The education, transpiration, factories, agriculture, communication, farming, labor and regional planning will be under the control of the government.