1. Unit 1: An Introduction to the Study of Economics
Lesson 3: Mixed Economies

2. Centrally Planned Economy
authoritarian socialism: an economic system in which the factors of production are publicly owned and utilized to benefit the common good of society
● closest to command model as government answer economic questions
● “From each according to his ability, to each according to his need”
● Examples: North Korea, China

3. Centrally Planned Economy
Karl Marx and the Communist Manifesto
● class struggle:
the “Haves”
vs.
“Have Nots”

4. Centrally Planned Economy
2. Karl Marx and the Communist Manifesto
● vanguard of the proletariat: a group of elite revolutionaries who will overthrow the capitalist oppressors
● dictatorship of the proletariat: a temporary government that will oversee the final destruction of capitalism

5. Centrally Planned Economy
Karl Marx and the Communist Manifesto
● Communist Party: an organization that would ensure the equal distribution of wealth until government “withers away”

6. Centrally Planned Economy
The Dream of a Utopia
● a classless society that enjoys a “collective spirit”
● the destruction of greed and poverty which eliminates social woes
● the absence of government resulting in real freedom

8. Centrally Planned Economy
The Reality
● it simply does not exist!

9. Centrally Planned Economy
The Reality
● Communist society is not equal because the government never “withers away”

10. Centrally Planned Economy
The Reality
● labor unions and government increased the standard of living for the working class in capitalist society