economic systems

examples-communism

china, vietnam, north korea, laos, and cuba

capitalism- definition and who owns the means of production

economic system in which private citizens own/use the means of production in order to make a profit

Communism- definition and who owns the means of production

economic system in which the government owns all of the means of production

Socialism- definition and who owns the means of production?

economic sysyem in which the government owns most of the means of production/ distribution in order to meet peoples basic needs and reduce inequality; individuals can own smaller buisnesses

who makes the economic decisions?-socialism

government and individuals

who makes the economic decisions?

government(in the name of the people)

why was capitalism created?

it evolved naturally from the industrial revolution due to new/different buisness practices

philosopher and writing-communism

karl marx-german but lived in england -wrote the communist manifesto(1848) with Friedrich Engels

why was communism created?

more radical response to inequalities of industrial revolution(extreme version of socialism)

AKA-socialism

none

philosopher and writing-socialism

none

who makes the economic decisions?-capitalism

private citizens--> owners and consumers

goal-capitalism

profit motive-make $$

characteristics-socialism

smaller industries privately owned but regulated by the government

examples-socialism

sweeden, norway, denmark

goal-communism

to eliminate class systems (and private property)

goal-socialism

to reduce inequalities and meet peoples basic needs

what prediction did marx and engels make about workers?

workers would overthrow owners

what 3 revolutionaries were inspired by marx in the 1900s

-Russias -Lenin -chinas-mao zedong -cubas-fidel castro

philosopher and writing-capitalism

-adam smith(scottish economist) who published THE WEALTH OF NATIONS -said that when people act in their own self interests, society benefits as a whole -economy guided by an "invisible hand"

what was the communist manifesto?

-an approach to the class struggles -the wealthy controled the means of producing goods -the poor performed backbreaking labor under terrrible conditions

characteristics-communism

-anti-organized religion; marx called religion "the opium of the people" -marx never led a revolution, but others adopted and adapted his ideas in the 1900's

whats the difference between bergeosie and poletarait?

-bourgeosie (employers) were the "haves" and the poletariat (workers) were the "have nots"

traditional economy

-children learn skills from their parents and live the same way ex: hunting, farming

positive outcomes-capitalism

-competition encourages a variety of products and innovation -freedom to make own $$ decisions

why was socialism created?

-created in response to inequalitites of capitalist system

AKA-capitalism

-fress enterprise system -market economy/ free market system

role of government-communism

-government owns and controls all means of production in the name of the people -all economic decisions made by the government through central planning

negative outcomes-socialism

-high taxes to support social spending -less choice/competition in major industries

positive outcomes-socialism

-less of an extreme between rich and poor -"cradle to grave" care

what was the role of the government-capitalism

-little to no influence or interference with economy -AKA-laissez-faire system: french for "to let alone"

role of government- socialism

-major industries were government owned and operated for public welfare ex: utilities, transportation, health care

AKA-communism

-marxist socialism -command economy

china today

-mixed economy -politically- hard line, strict communists who refuse to make reforms economically-experimenting with government controlled capitalism in special trade zones -industrializing faster than any country in history

positive outcomes-communism

-no unemployment -women viewed more equally -meant to be a "workers utopia"--> everyone referred to as a comrade

characteristics-capitalism

-private property rights -competition determines which buisnesses survive -law of supply/demand determine prices -pro-free trade(the less limitations on trade the better)ex:NAFTA

what are other things that influence changes in society?

-religion -nationalism -ethnic loyalties -desire for democratice reforms

negative outcomes-capitalism

-rich get richer off labor of workers -there will always be poverty

negative outcomes-communism

-when this economic system was turned into a political system it didnt hold true to marx idea's

example-capitalism

USA

what does dictatorship of the poletariat mean?

after a period of cooperative living and education, the state or government would wither away as a classes society developed

what did marx think would happen to the governemtn(or state) once the workers took everything over?

all land, mines, factories, railroads and buisnesses would be owned by people