1. Different Kinds of Capitalism

2. Testing for Capitalism 1. Do people own the means of production?

3. Testing for Capitalism 1. Do people own the means of production? 2. Are resources allocated according to profits or controlled by the gov’t?

4. Testing for Capitalism 1. Do people own the means of production? 2. Are resources allocated according to profits or controlled by the gov’t? 3. What share of the national income (GDP) is spent by the gov’t?

5. Capitalism in the US and Japan http://www.cbsnews.com/video /watch/?id=4502721nhttp://www.cbsnews.com/video /watch/?id=4502721n http://www.france24.com/en/ 20110214-china-supplants-japan- worlds-number-two-economy

6. Capitalism in the US and Japan Market forces determine most resource allocation in the US

7. Capitalism in the US and Japan Market forces determine most resource allocation in the US In Japan, gov’t works w/ business to determine who will be most successful in production

8. Capitalism in the US and Japan Market forces determine most resource allocation in the US In Japan, gov’t works w/ business to determine who will be most successful in production –Over 700 Japanese corporations formed the Federation of Economic Organization headed by a “prime minister of industry” that shape resource distribution

9. Capitalism in the US and Japan In the US, the Commerce Dept. provides info on the world markets to all firms

10. Capitalism in the US and Japan In the US, the Commerce Dept. provides info on the world markets to all firms In Japan, the Ministry of Industry and Trade picks industries that they believe will be successful and help them with; –Low cost loans, research grants, tax breaks, and advice

11. Capitalism in the US and Japan In the US, the Commerce Dept. provides info on the world markets to all firms In Japan, the Ministry of Industry and Trade picks industries that they believe will be successful and help them with; –Low cost loans, research grants, tax breaks, and advice –In addition, Japan protects those domestic industry through strict import regulations

12. Capitalism in the US and Japan The two countries of have very different labor-management relations

13. Capitalism in the US and Japan The two countries of have very different labor-management relations –In the US the two sides are in opposition –In Japan, many businesses are treated as part of the family resulting in workers seeing the firm’s success as their personal responsibility

14. Capitalism in the US and Japan The two countries of have very different labor-management relations –In the US the two sides are in opposition –In Japan, many businesses are treated as part of the family resulting in workers seeing the firm’s success as their personal responsibility In recent years, this relationship has been changing significantly in Japan

15. Capitalism in the US and Japan The two countries of have very different labor-management relations –In the US the two sides are in opposition –In Japan, many businesses are treated as part of the family resulting in workers seeing the firm’s success as their personal responsibility In recent years, this relationship has been changing significantly in Japan Japanese gov’t spends far less on social welfare than the US