1. Socialism Addition to Economies

2. 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 Five Features of FE Economy

3. What Changes our Capitalism into Socialism? Economic system mixed with government involvement/regulation U.S. Postal Service Amtrack Medicare, Medicaid AFDC Social Security Unemployment Compensation FTC EPA BRINGS US TO A MIXED CAPITALIST SYSTEM

4. 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 three basic questions 3.There is an attempt to distribute income equally. As in all 3 basic economies… socialism is determined by degrees…explain!

5. Summary Socialism State ownership of means for producing goods and services Major industries often controlled by government. BBC… British Airlines…Coal Mines… Steel Mills. Venezuela today nationalizing industries. Private ownership of secondary institutions. Personal freedoms do exist- but to lesser degree than market economy. Allocation of resources not efficient…massive government “bog-down” “featherbedding” etc. Not a lean/mean economy…. Very heavy government.