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Sistemas Económicos Sexto Grado Mrs. Martínez. Perspectiva Socialismo: Si usted tiene dos vacas, el gobierno le da una a su vecino. (Todo el mundo tiene.

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Presentation on theme: "Sistemas Económicos Sexto Grado Mrs. Martínez. Perspectiva Socialismo: Si usted tiene dos vacas, el gobierno le da una a su vecino. (Todo el mundo tiene."— Presentation transcript:

1 Sistemas Económicos Sexto Grado Mrs. Martínez

2 Perspectiva Socialismo: Si usted tiene dos vacas, el gobierno le da una a su vecino. (Todo el mundo tiene su parte) Comunismo: Si usted tiene dos vacas, el gobierno las toma y usted las ordeña para todos. (Esfuerzo y recursos compartidos) Capitalismo: Si usted tiene dos vacas, vende una y compra un toro. (Supervivencia del más apto)

3 Free Enterprise (US) The economic system called free enterprise refers to an economy in which the people themselves make decisions about what to produce, how it should be produced, and who should get it. People can produce what they want and they are the consumers, who can buy whatever they can afford to purchase. Free enterprise can be called capitalism because capital refers to investing money in production and making profits based on investment of money. It is also called a free market economy because the idea of market refers to the freedom to make and sell goods in different types of business transactions. The law of supply and demand determines the cost of products and services. If there is a low demand for a product and a large supply of it, the price will go down. If there is a short supply of a product and a high demand, the price will go up. Businesses use marketing strategies and advertising to get people to buy their products rather than from another manufacturer. Free enterprise encourages competition and the public has many choices in what to purchase. Commercial agriculture and commercial industries are part of the free enterprise system. The desire for profit motivates people to invest money or borrow money to invest in business ventures.

4 Communism (Communist Economic System) (Cuba) In the 19th century capitalists in many countries became very rich from profits. However, the workers in the factories of commercial industries and commercial farms were overworked and underpaid. Karl Marx promoted the idea of a classless society, equality of workers, and ownership of everything by the collective group. Followers of communism believed that the communist system should be set up by violent revolution if necessary. Once in place the workers were to cooperate with each other. According to communism, the government makes all the decisions about what to produce, how it should be produced, and who should get the products. The government planners control all the resources and make all the decisions about goods and services. The countries that have set up the economic system of communism have also set up totalitarian dictatorships as a form of government. The dictators have controlled not only the economy but also the social life of the people. Freedom of expression, criticism of the government, free choice have not been allowed.

5 Socialism (Socialist Economic System) Socialism also started in the 19th century as a movement to correct some of the problems of capitalism that left many people poor, oppressed, and taken advantage of. Socialism wanted to end poverty by allowing the government to control the resources and businesses that affected the public. These businesses were primarily transportation (railroads and later airplanes), healthcare, communications, and utilities. The ideal of public service so that all people could have opportunities was advocated. In the United States, people chose to solve the problems of exploiting workers by making laws and regulations. Representatives were elected that passed minimum wage laws, 8 hour days and overtime for working more that 8 hours, safety in the work place, and insurance programs to assist workers injured on the job. Other laws prevented a business from becoming a monopoly and outlawing unfair practices. The socialist economic system wants major industries to be owned by the government. They also want wealth and income to be distributed so that all citizens' basic needs are met. The economic system of socialism wants people's needs for health care, education, housing, and transportation to be met at a low cost or even for free. Private property is valued and decisions about work are to be free. However, people pay high taxes to support the government's programs.

6 Design a chart that compares and contrasts the ways that people organize goods and services in Free Enterprise, Communist Economic System, and Socialist Economic System.

7 6.9 Economics. The student understands the various ways in which people organize economic systems. The student is expected to: (A) compare ways in which various societies organize the production and distribution of goods and services; (B) compare and contrast free enterprise, socialist, and communist economies in various contemporary societies, including the benefits of the U.S. free enterprise system; (C) understand the importance of morality and ethics in maintaining a functional free enterprise system; and (D) examine the record of collective, non-free market economic systems in contemporary world societies. 6.10 Economics. The student understands categories of economic activities and the data used to measure a society's economic level. The student is expected to: (A) define and give examples of agricultural, wholesale, retail, manufacturing (goods), and service industries; (B) describe levels of economic development of various societies using indicators such as life expectancy, gross domestic product (GDP), GDP per capita, and literacy; and (C) identify and describe the effects of government regulation and taxation on economic development and business planning. 6.3 Geography. The student uses geographic tools to answer geographic questions. The student is expected to: (D) create thematic maps, graphs, charts, models, and databases depicting aspects such as population, disease, and economic activities of various world regions and countries.

8 Get Started Next to the words or phrases below—place a check by the ones you know and can explain; place a star by the ones you have seen before; place a question mark next to the ones you are not familiar with. Economicsstandard of living free enterprisesocialist communistproduction and distribution of goods Indicators Life expectancy literacyGDP per capita ( gross domestic product) manufacturing Retail wholesaleInfant mortality rate At the end of this lesson, see how many words you can explain and mark them with a check mark.

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