CAPITALISM

Adam Smith (Book: Wealth of Nations).”the great object of the political economy of every country is to increase the riches and the power of that country”.

Karl Marx said how individuals organize themselves to satisfy the material needs.

Max weber (protestant ethic) said that capitalism evolved in northern Europe when people organized themselves and engaged in developing enterprise and engaging in trade and accumulation of wealth.

Veblen said that production is a social process in which people shared knowledge that passed from generation to generation.

TYPES OF CAPITALISM

A painting of a French seaport from 1638 at the height of mercantilism.

Corporate capitalism characterized by private ownership determined by prices and private owners decisions

Mercantilist capitalism-to increase the power and monetary wealth.

Free market capitalism where ownership is in private hands and production and distribution is determined by supply and demand forces.

State capitalistic system-in which commercial activities are undertaken by state in capitalistic manner.

BENEFITS OF CAPITALISM

Provides Choice to customers.

Provides valuable goods and services.

Capitalism actively rewards positive traits like hard work.

Similarly, it punishes negative traits such as laziness and theft.

Provides opportunity to realize dreams

and desires.

FEATURES OF SOCIALISMSocial Ownership of means of

production.Existence of public sector.Decisive role of Economic Planning.Production guided by Social Benefits.Abolition of exploitation of labour.

FORMS OF SOCIALISM

Anarchism.

Democratic socialism.

Religious socialism.

i. Better salaries.

ii. Stable Environment.

iii. Eliminates poverty.

iv. Better Products.

v. Fulfills survival need.

vi. Opportunity for citizens to explore non-economically-productive pursuits.

BENEFITS OF SOCIALISM

CRITISISM

Reduced incentives.

Reduced prosperity.

Suppression of economic democracy.

Stagnant technological advancements.

NO SOCIALISM NO CAPITALISM

MIXED ECONOMY

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