1. Communism vs Capitalism

2. Capitalism- a system based on private ownership and on investment of money in business in order to make a profit.

3. The government should stay out of business…keep their “hands off”
The "invisible hand"...
the economic choices made by the individual (the “invisible hand”) should drive supply and demand and establish stability in the market
The government should stay out of business…keep their “hands off”
This is why Smith’s ideas are usually called “laissez faire” economics….French for “hands off”

4. And the individual gets to keep the fruits of his or her labor
Capitalism rewards those who are more productive and more innovative….
Efficient workers get paid more than lazier or less able workers
And the individual gets to keep the fruits of his or her labor
New innovations leads to profits

5. Apple had a 20 billion dollar profit just last year
Since workers benefit directly from their efforts, there is incentive to work hard or invent new things
Apple had a 20 billion dollar profit just last year
This inventor has had 140 million dollars in sales since 1991

6. Owners wanted to maximize profits, they had to minimize their costs…..
Which led to the worker abuse and a growing gap between the upper and lower classes
Some people thought that society should change because of all the negatives

7. Communism- a system in which goods are owned in common and are available to all as needed

8. Sickle for the Peasants – the farm labourers
What is Communism?
This is the symbol of Communism – The Hammer and the Sickle
Hammer for the
Workers
Sickle for the Peasants – the farm labourers

9. This is his good friend, Frederick Engels.
They wrote the ‘Communist Manifesto’
in It’s a short book – but billions of people have read it….
This is Karl Marx, the ‘Father of Communism’. People who believe in his ideas are called ‘Marxists’
This is his good friend, Frederick Engels.

11. Advantages:
Everyone gets something (equal)
No unemployment
Healthcare for all citizens
Cooperation of the people (work for the country to benefit)
Disadvantages:
Abuse of power
Restrictions- no freedom of speech, press, no religious practices
Censorship
Against ethnic diversity
Government controls property- very little if any, could own private property
Individual doesn’t compete, in some ways lazy and does not need to strive for more

12. Advantages: Disadvantages: You can own property Individuals can
prosper/competition for wages
Freedom of speech, press, religion
Embrace ethnic diversity
Makes the individual work worth something
Disadvantages:
Poverty
Not everyone has healthcare
Monopolies- control too much business
Creates inequalities (ex: rich vs poor, have vs have not)