alternative economic systems. communism: theory karl marx believed history was a struggle between...
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Alternative Economic Systems
Communism: Theory
• Karl Marx believed history was a struggle between capitalists (owned means of production) and others (who worked for capitalists).
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
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
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
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
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
Communism: Reality
• Marx never laid out plans for how a communist economic system would function
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)
Communism: Reality
• Soviet Communism was driven by fear of the government
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
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
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
Socialism: Reality
• Socialism traces its roots to Marx, but without the worker’s revolution
Socialism: Reality
• Socialism traces its roots to Marx, but without the worker’s revolution
• Socialism can exist on very different levels
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
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
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
Capitalism: Reality
• Private individuals make the decisions of the economy with limited gov’t input
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
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
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
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%
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