Capitalism Capitalism versus versus

SocialismSocialism

CapitalismCapitalism SocialismSocialism1.1. Individuals & Individuals &

businesses businesses own property own property & means of & means of productionproduction

1.1. The The community or community or state owns state owns property & the property & the means of means of productionproduction

CapitalismCapitalism SocialismSocialism2.2. Progress Progress

results when results when individuals individuals follow their follow their own self-own self-interestinterest

2.2. Progress Progress results when a results when a community of community of producers producers cooperate for cooperate for the good of allthe good of all

CapitalismCapitalism SocialismSocialism3.3. Businesses Businesses

follow their follow their own self-own self-interest by interest by competing for competing for consumer’s consumer’s moneymoney

3.3. Socialists Socialists believe that believe that capitalism capitalism takes takes advantage of advantage of the workerthe worker

•Dominos Pizza

•Papa John's Pizza

•Pizza Hut Pizza

Pizza Anyone?Pizza Anyone?

CapitalismCapitalism SocialismSocialism4.4. Each business Each business

tries to tries to produce goods produce goods or services or services that are better that are better & less & less expensive than expensive than those of those of competitorscompetitors

4.4. The The community or community or state must act state must act to protect to protect workers and workers and consumersconsumers

CapitalismCapitalism SocialismSocialism5.5. Consumers Consumers

compete to compete to buy the best buy the best goods at the goods at the lowest priceslowest prices

5.5. Socialists Socialists believe that believe that capitalism capitalism creates an creates an unequal unequal distribution of distribution of wealthwealth

• The The Ultimate Ultimate Price? Price?

The Ultimate The Ultimate Price?Price?

CapitalismCapitalism SocialismSocialism6.6. Consumer Consumer

competition competition shapes the shapes the market by market by affecting what affecting what businesses are businesses are able to sellable to sell

6.6. Rather than Rather than competition, competition, goods should goods should be distributed be distributed according to according to each person’s each person’s needneed

• Avalon (2005-2010)Avalon (2005-2010)• Camry (2007-2010)Camry (2007-2010)• Corolla (2009-2010)Corolla (2009-2010)• Highlander (2008-2010)Highlander (2008-2010)• Matrix (2009-2010)Matrix (2009-2010)• Prius (2004-2010)Prius (2004-2010)• RAV4 (2009-2010)RAV4 (2009-2010)• Sequoia (2008-2010)Sequoia (2008-2010)• Tacoma (2005-2010)Tacoma (2005-2010)• Tundra (2007-2010)Tundra (2007-2010)• Venza (2009-2010)Venza (2009-2010)

CapitalismCapitalism SocialismSocialism7.7. Gov’t SHOULD Gov’t SHOULD

NOT interfere NOT interfere in the in the economy economy because because competition competition creates creates efficiency in efficiency in businessbusiness

7.7. Gov’t SHOULD Gov’t SHOULD control & control & regulate the regulate the economy to economy to protect protect workers & workers & consumersconsumers

Capitalism v. Capitalism v. SocialismSocialism

• According to Karl Marx the According to Karl Marx the economy is a major force for economy is a major force for changechange

• Change generally occurs Change generally occurs through class strugglethrough class struggle

• The “HAVES” v. the “HAVE-The “HAVES” v. the “HAVE-NOTS”NOTS”

Time Time PeriodPeriod

The The

““Haves”Haves”The The

““Have-Nots”Have-Nots”

EgyptEgyptPharaohs, Pharaohs,

priests, royal priests, royal families, etc.families, etc.

Slaves, Slaves, peasantspeasants

IndiaIndiaUpper castes: Upper castes:

priests & priests & rulersrulers

Lower castes: Lower castes: servants & servants &

slavesslaves

Time Time PeriodPeriod

The The

““Haves”Haves”The The

““Have-Nots”Have-Nots”

MiddleMiddle

AgesAgesNobles, Nobles,

landownerslandownersPeasants, Peasants,

serfsserfs

Age of Age of IndustrIndustr

yy

Middle Class Middle Class (Bourgeoisie)(Bourgeoisie)

Factory Factory workers workers

(Proletariat)(Proletariat)

Capitalism v. Capitalism v. SocialismSocialism

• Throughout history the Throughout history the “HAVES”:“HAVES”:

• Control politics & Control politics & governmentgovernment

• Create & control Create & control culture culture

Capitalism v. Capitalism v. SocialismSocialism

• As a result of this As a result of this influence on society influence on society the “HAVES” have the “HAVES” have historically kept historically kept their position on their position on top of the top of the social social structurestructure

Some Recent Some Recent StatisticsStatistics

• It has been suggested that the It has been suggested that the recent financial crisis has led to recent financial crisis has led to an increase in support for an increase in support for Socialism in the United States…Socialism in the United States…

• Statistics…Statistics…

Some Recent Some Recent StatisticsStatistics

• 53% of American adults over the 53% of American adults over the age of 30 believe CAPITALISM is age of 30 believe CAPITALISM is better than SOCIALISMbetter than SOCIALISM

• Adults under the age of 30 are Adults under the age of 30 are divided; 37% CAPITALISM; 33% divided; 37% CAPITALISM; 33% SOCIALISM; 30% UNDECIDEDSOCIALISM; 30% UNDECIDED

Capitalism v. Capitalism v. SocialismSocialism

• Pure Communism in Marx’s Pure Communism in Marx’s VisionVision::

• ALL “HAVES” & NO “HAVE-NOTS”ALL “HAVES” & NO “HAVE-NOTS”