1. Alternative Economic Systems

2. Communism: Theory Karl Marx believed history was a struggle between capitalists (owned means of production) and others (who worked for capitalists).

3. Communism: Theory Karl Marx believed history was a struggle between capitalists (owned means of production) and others (who worked for capitalists). During the Industrial Revolution, the means of production became too expensive for most people to own

4. Communism: Theory During the Industrial Revolution, the means of production became too expensive for most people to own This allowed capitalists to make large profits

5. Communism: Theory During the Industrial Revolution, the means of production became too expensive for most people to own This allowed capitalists to make large profits Exploited the workers, workers couldn’t afford products which led to overproduction and eventually recessions

6. Communism: Theory Exploited the workers, workers couldn’t afford products which led to overproduction and eventually recessions At some point, workers would tire of conditions and revolt

7. Communism: Theory Exploited the workers, workers couldn’t afford products which led to overproduction and eventually recessions At some point, workers would tire of conditions and revolt After the revolution, they would share the fruits of their labor equally

8. Communism: Reality Marx never laid out plans for how a communist economic system would function

9. Communism: Reality Marx never laid out plans for how a communist economic system would function Thus, there have been numerous failed attempts at communism (Soviet Union)

10. Communism: Reality Soviet Communism was driven by fear of the government

11. Communism: Reality Soviet Communism was driven by fear of the government The gov’t made all decisions, which led to shortages of needed products, and surpluses of unwanted products

12. Communism: Reality Soviet Communism was driven by fear of the government The gov’t made all decisions, which led to shortages of needed products, and surpluses of unwanted products The standard of living was very low, and people lacked incentive to work hard

13. Communism: Reality The gov’t made all decisions, which led to shortages of needed products, and surpluses of unwanted products The standard of living was very low, and people lacked incentive to work hard This led to its failure when the basic commodities needed for survival were not being adequately produced

14. Socialism: Reality Socialism traces its roots to Marx, but without the worker’s revolution

15. Socialism: Reality Socialism traces its roots to Marx, but without the worker’s revolution Socialism can exist on very different levels

16. Socialism: Reality Socialism traces its roots to Marx, but without the worker’s revolution Socialism can exist on very different levels –In Western Europe, the government may own large industries and utilities while allowing other markets to be capitalistic

17. Socialism: Reality Socialism traces its roots to Marx, but without the worker’s revolution Socialism can exist on very different levels –In Western Europe, the government may own large industries and utilities while allowing other markets to be capitalistic The current trends in in Western Europe are away from Socialism

18. Socialism: Reality Socialism can exist on very different levels –In Western Europe, the government may own large industries and utilities while allowing other markets to be capitalistic The current trends in in Western Europe are away from Socialism –Many nations have sold off government owned industry to private business b/c they are more efficient

19. Capitalism: Reality Private individuals make the decisions of the economy with limited gov’t input

20. Capitalism: Reality Private individuals make the decisions of the economy with limited gov’t input The government’s role is to set and enforce basic rules for how businesses are organized

21. Capitalism: Reality Private individuals make the decisions of the economy with limited gov’t input The government’s role is to set and enforce basic rules for how businesses are organized We are far from pure capitalism in the US

22. Capitalism: Reality Private individuals make the decisions of the economy with limited gov’t input The government’s role is to set and enforce basic rules for how businesses are organized We are far from pure capitalism in the US –Over 1/3 of the money earned in our country goes to the gov’t to support education, welfare, health services and various other gov’t programs

23. Capitalism: Reality We are far from pure capitalism in the US –Over 1/3 of the money earned in our country goes to the gov’t to support education, welfare, health services and various other gov’t programs However, we are far from other comparative countries like France and Sweeden who are well over 50%