Capitalism vs. Socialism

1
Capitalism vs. Socialism
2
Definition of Capitalism

• According to Dictionary.com, Capitalism is
• an economic system
• investment in and ownership of the means of
  production, distribution, and exchange of wealth
  is made and maintained chiefly by private
  individuals or corporations

3
Definition of Socialism

• According to Merriam-Webster, Socialism is
• Government ownership and administration of the
  means of production and distribution of goods
• A system of society or group living in which
  there is not private property
• A system or condition of society in which the
  means of production are owned and controlled by
  the state

4
Capitalism vs. Socialism

• Capitalist countries
• America
• Canada
• Brazil
• Japan
• Mexico

• Socialist countries
• Cuba
• Saudia Arabia
• Iran
• North Korea
• Burma

5
Mixed Economy

• According to dictionary.com, a Mixed economy is
• An economy in which some industries are privately
  owned and others are publicly owned or
  nationalized
• Many capitalist economies are mixed economies
  (some capitalism and some socialism)

6
Pros and Cons of Capitalism

• Pros
• Competition to provide goods and services keeps
  prices low
• Rewards hard work
• Provides choice
• Allows for the building up of wealth and
  possessions
• Consumers regulate the market

• Cons
• Exploits people who cannot compete
• Uneven distribution of wealth
• Creates a money-oriented society
• Constant economic growth may deplete the earths
  resources

7
Pros and Cons of Socialism

• Pros
• All members share benefits
• Those who cannot contribute may still participate
  (disabled, elderly)
• Each members survival needs are met
• Equal distribution of wealth
• No socioeconomic classes

• Cons
• No incentive to work harder
• No competition means no reward to be innovative
• New members to the community (immigrants) are
  seen as competition for limited goods and
  services
• Higher taxes

8
Which is best Capitalist economy, Socialist
economy, or a Mixed economy?

• A free market exists with some regulation by the
  government
• People can create their own businesses and make a
  profit
• All businesses pay taxes, which benefit everyone

9
Government subsidized programs

• Postal service
• Rail lines
• Libraries
• Health care
• Social programs
• Roads
• Infrastructure (bridges, freeways, etc.)
• Can you think of any others?