Capitalism and its History in Canada

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Capitalism and its History in Canada

• What is Capitalism?

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History of Capitalism in Canada

• Saskatchewan had a unique set of resources which
  had the potential to support an agricultural
  economy.
• People who originally settled in Western Canada
  came here with the intent of creating a better
  life for themselves.

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History cont.

• They had both political and economic criteria for
  what they would consider an improved standard of
  living
• the right to live their lives according to their
  personal conscience
• the right to be independent and autonomous
  decision makers socially and politically
• the right to own their own property and
• the right to accumulate wealth and pass it on to
  their children.

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Capitalism in Canada

• Most Canadians accepted a capitalistic economic
  system.
• The economic decision making system which came to
  dominate Canada in the early twentieth century
  was the market system of economic decision
  making.

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The Market System Was Selected Because It Suited

• the capitalistic economic paradigm
• the liberal democratic political paradigm as
  well as the
• geographic and social realities of the western
  Canadian frontier.

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What is Capitalism?

• Capitalism is an economic paradigm
• Here the capacity to produce goods and services
  are owned and controlled by individuals or
  groups and
• Here the market place is used to make decisions
  about how the basic economic questions are
  answered for individuals and society
• what goods services should be produced?
• how should society go about producing goods
  services?
• for whom should these goods and services be
  produced?
• Who decides what, how, and for whom goods and
  services will be produced?

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Capitalism or Not?

• Consider the definition of capitalism.
• A brother and sister want to sell popcorn during
  minor hockey games this winter. They ask the
  league officials for permission. The officials
  tell them they can sell popcorn, but the pocorn
  must be buttered and plain in paper bags, and for
  no more than a .05 profit per bag.
• Is this an example of capitalism?

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Group Discussion

• Today the United States of America is often
  described as a capitalist society.
• Based on the two part definition of Capitalism,
  work in your groups to provide and example of
  both parts of the definition.

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Comparing Economic Systems

• Market Economy
• Planned (Command) Economy
• Traditional Economy
• Mixed Economy
• See Worksheet 1 for definitions

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What are the differences?

• Market Economy - also known as a capitalist
  economy, consumers influence the market through
  their demand and ability to purchase goods and
  services. There is very little government
  intervention.
• Producers are motivated by profit and therefore
  consumers purchasing patterns determine what
  goods and services are produced.

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• Former Soviet Union was a Planned/Command
  Economy. The government leaders were responsible
  for making economic decisions. Resources are
  owned and controlled by the government.
• In traditional economies the four basic questions
  are based on past practice. Collective decision
  making occurs.

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Key Features of Capitalism

• Motivation for profits
• Private Ownership
• Voluntary Exchange
• Free Enterprise

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Resources for required for Capitalism

• Natural Resources
• Capital Resources
• Labor Resources
• Entrepreneurial Resources

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Based on the handout Capitalism

• Identify examples of all four types of resources
  used to create the following products.
• Computer
• Jar of Apple Sauce
• T-shirt
• Airplane

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Differences in Capitalist Society

• Key difference between businesses in a capitalist
  society is whether they provide goods or
  services.

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Government Involvement

• The US Economy does have elements of Command
  Economics and Traditional Economics.
• Government plans and budgets spending
• Specific areas of the country resemble a
  Traditional Economy

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Mixed Economy

• Although US Economy is best described as a
  Capitalist society, the correct definition of its
  economic system is to call it a Mixed Market
  Economy.
• Today Canada also falls under the Mixed Market
  Economy as well.
• What are the elements making this a mixed-market
  economy?

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Conclusion

• Capitalism
• Is an economic paradigm
• here the capacity to produce goods and services
  are owned and controlled by individuals or
  groups and
• here the market place is used to make decisions
  about how the basic economic questions are
  answered for individuals and society
• what goods services should be produced?
• how should society go about producing goods
  services?
• for whom should these goods and services be
  produced?

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• Capitalism is based on
• Individual initiative,
• Competition,
• Private ownership of property
• Businesses respond to the demands of goods and
  services by the consumer.

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The End