Download - Capitalism versus Socialism
![Page 2: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/2.jpg)
• The economic system known as capitalism developed gradually over centuries, originating during the late Middle Ages.
• During the 19th century societal changes due to industrialization led some people believe that capitalism caused certain problems, such as the abuse of workers.
• These critics of capitalism responded by developing a new economic system called socialism
![Page 3: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/3.jpg)
Capitalism• Definition:
economic system in which the factors of production are privately owned & money is invested to make a profit
![Page 4: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/4.jpg)
Capitalism• Adam Smith: wrote
The Wealth of Nations
• Believed in Laissez-faire economics – gov’t should NOT interfere in a free market
![Page 5: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/5.jpg)
Capitalism• 3 Natural Laws of Economics:1. Law of Self-Interest: People work for
their own good2. Law of Competition: Competition
forces people to make a better product
3. Law of Supply & Demand: Enough goods would be produced at the lowest possible price to meet demand
![Page 6: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/6.jpg)
Socialism• Definition: economic system in
which the factors of production are owned by the public and operate for the welfare of all
![Page 7: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/7.jpg)
Socialism• Grew out of a
concern for social justice
• Government should control key industries to end poverty and promote equality
![Page 8: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/8.jpg)
• Individuals & businesses own property & means of production (private)
• The community or state owns property & the means of production (public)
Socialism
Capitalism
![Page 9: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/9.jpg)
• Progress results when individuals follow their own self-interest
• Progress results when a community of producers cooperate for the good of all
Socialism
Capitalism
![Page 10: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/10.jpg)
• Businesses follow their own self-interest by competing for consumer’s money
• Socialists believe that capitalism takes advantage of the worker
Socialism
Capitalism
![Page 11: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/11.jpg)
• Dominos Pizza
• Papa John's Pizza
• Pizza Hut Pizza
Pizza Anyone?
![Page 12: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/12.jpg)
Not lovin’ it
![Page 13: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/13.jpg)
• Each business tries to produce goods or services that are better & less expensive than those of competitors
• The community or state must act to protect workers and consumers
Socialism
Capitalism
![Page 14: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/14.jpg)
• Consumers compete to buy the best goods at the lowest prices
• Socialists believe that capitalism creates an unequal distribution of wealth
Socialism
Capitalism
![Page 15: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/15.jpg)
• The Ultimate Price?
The Ultimate Price?
![Page 16: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/16.jpg)
U.S. Distribution of Wealth 2013
![Page 17: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/17.jpg)
• Consumer competition shapes the market by affecting what businesses are able to sell
• Rather than competition, goods should be distributed according to each person’s need
Socialism
Capitalism
![Page 18: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/18.jpg)
• Gov’t SHOULD NOT interfere in the economy because competition creates efficiency in business
• Gov’t SHOULD control & regulate the economy to protect workers & consumers
Socialism
Capitalism
![Page 19: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/19.jpg)
Marxism – Radical Socialism
• According to Karl Marx the economy is a major force for change
• Change generally occurs through class struggle
• The “HAVES” v. the “HAVE-NOTS”
![Page 20: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/20.jpg)
Marxism – Radical Socialism
• Throughout history the “HAVES”:• Control politics &
government• Create & control
culture
![Page 21: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/21.jpg)
Marxism – Radical Socialism
• As a result of this influence on society the “HAVES” have historically kept their position on top of the social structure
![Page 22: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/22.jpg)
Marxism – Radical Socialism
• Said the large proletariat would revolt, seize factories/mills from the capitalists, & produce what society needs
![Page 23: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/23.jpg)
Time Period
The “Haves”
The “Have-Nots”
EgyptPharaohs,
priests, royal families, etc.
India Upper castes: priests &
rulers
Slaves, peasants
Lower castes:
servants & slaves
![Page 24: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/24.jpg)
Time Period
The “Haves”
The “Have-Nots”
MiddleAges
Peasants, serfs
Age of Industr
y
Middle Class (Bourgeoisie)
Factory Owners
Nobles,landowners
Factory workers
(Proletariat)
![Page 25: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/25.jpg)
Communism (in theory)• Pure Socialism in Marx’s Vision =
Communism• ALL “HAVES” & NO “HAVE-NOTS”• Classless
society with NO gov’t
• All goods & services shared equally
![Page 26: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/26.jpg)
In the American System?• Business can require workers to
work for unlimited hours• Businesses compete with each
other for customers• Hiring practices permit
discrimination• Huge variety of products
available• Individuals can start a business
![Page 27: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/27.jpg)
In the American System?• Individuals can own a business• People can improve material
wellbeing through hard work• Prices vary with availability and
demand• Production of too many goods
results in discount stores • Some people do not have health
care
![Page 28: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/28.jpg)
In the American System?• Unregulated monopolies• Wages vary according to the
availability of that type of worker• Workers laid off if demand drops
or business fails• 40 hour work week • Bankruptcy laws
![Page 29: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/29.jpg)
In the American System?• Child labor laws• Government protection of bank
deposits• Higher tax rates for wealthier
people • Government inspection of
meat/restaurants•
![Page 30: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/30.jpg)
In the American System?• Medicare• Minimum wage• Old age/retirement payments by
the gov’t• Over-time pay• Public libraries, parks, & schools
![Page 31: Capitalism versus Socialism](https://reader036.vdocuments.mx/reader036/viewer/2022062815/568168af550346895ddf6faa/html5/thumbnails/31.jpg)
In the American System?• Workman’s compensation for
injury on the job• Workplace safety inspection• No private ownership of the
means of production• Equal pay for equal work