1. The Economy
Overview

2. What is an Economy?
The economy is the social institution that organizes a society’s production, distribution, and consumption of goods and services.
Goods are commodities ranging from from necessities (such as food, clothing, and shelter) to luxury items (such as automobiles, swimming pools, and yachts).
Services are activities that benefit people (including the work of priests, doctors, teachers, and engineers).

3. Capitalism
Capitalism is an economic system in which natural resources and the means of producing goods and services are privately owned.

4. An ideal capitalist economy has three distinctive features:
Private ownership of property
Pursuit of personal profit
Competition and consumer choice
Consumers guide a market economy by choosing the goods and services that offer the greatest value.

5. Capitalism Few Regulations Competitive Attitudes
Market determines what is best (sales)
Competitive Attitudes
“Justice” in a capitalist system amounts to freedom of the marketplace, where anyone can produce, buy, and invest according to self-interest.

6. Capitalism Success is Based On: Just like Social Darwinism Hard Work
Intelligence
Talent
Just like Social Darwinism
Survival of the fittest

7. Socialism
Socialism is an economic system in which natural resources and the means of producing goods and services are collectively owned.
A socialist economy rejects the 3 characteristics of capitalism in favor of the complete opposite:
Collective ownership of property
Pursuit of collective goals
Government control of the economy

8. Socialism
Businesses have less incentive to produce high quality products – Why???
“Justice” in a socialist context means not competing to gain wealth but meeting everyone’s basic needs in a roughly equal manner.
Do you think the U.S. could ever become a socialist nation?

9. Capitalism vs. Socialism
Greater productivity
Higher overall standard of living
Greater income inequality
Freedom to act according to self-interest
Socialism
Less productivity
Lower overall standard of living
Less income inequality
Freedom from basic want