Transcript Capitalism vs. Socialism

Capitalism vs. Socialism
Created by: Tammy Twiggs
Definition of Capitalism
According to Dictionary.com, Capitalism is…
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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
Definition of Socialism
According to Merriam-Webster, Socialism is…
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Government ownership and administration
of the means of production and distribution of goods
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A system of society or group living in which there is
private property
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not
A system or condition of society in which the means of
production are
state
owned and controlled by the
Capitalism vs. Socialism
Capitalist countries:
 America
 Canada
 Brazil
 Japan
 Mexico
Socialist countries:
 Cuba
 Saudia Arabia
 Iran
 North Korea
 Burma
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)
Pros and Cons of Capitalism
Pros
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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
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Exploits people who
cannot compete
Uneven distribution of
wealth
Creates a money-oriented
society
Constant economic
growth may deplete the
earth’s resources
Pros and Cons of Socialism
Pros
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All members share benefits
Those who cannot contribute
may still participate (disabled,
elderly)
Each member’s survival needs
are met
Equal distribution of wealth
No socioeconomic classes
Cons
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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
Which is best: Capitalist economy, Socialist
economy, or a Mixed economy?
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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
Government subsidized programs
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Postal service
Rail lines
Libraries
Health care
Social programs
Roads
Infrastructure (bridges, freeways, etc.)
Can you think of any others?