1. Aim: In what ways do Communism and Capitalism Differ?
Capitalism and Communism
Define: Proletariat, Capital, Free Enterprise, Stock

2. OBJECTIVE
To be able to identify the fundamental characteristics of both communism and capitalism

3. Proletariat Capital Free Enterprise Stock Define:
Working Class as described by Karl Marx
Money to invest in Business
The ability to start your own business and be an entrepreneur
Money that individuals invest in companies hoping to make money from that company’s profit
Proletariat
Capital
Free Enterprise
Stock

4. COMMUNISM
Originally called, Marxism or Socialism
Founded By KARL MARX
Marx wrote the book The Communist Manifesto in which he explains what he thinks will cure the problems of the poor working class people during the Industrial Revolution.

5. Communism Continued…
Marx called the workers of the world the “Proletariat”
He says that all of history is a struggle between the “haves” and “have nots”.

6. Karl Marx’ Plan
Marx said that the only way to end the class struggle between rich and poor is to make everything collectively owned.
Marx says that when everyone collectively own everything, there will be no rulers or ruled

7. The Concept of Communism
The idea behind Communism is to create a classless society where everyone is equal and everything is shared.
Everyone makes the same amount of money and there is no competition between businesses.

8. The Governments Role in Communism
Communism is often confused as a government system and not an economic one. This is because the government has so much control in communist societies.
The government sets prices, production quotas and wages.

9. Capitalism
Capitalism was developed by Adam Smith in Wealth of Nations
Smith developed the idea of Laissez- Faire Economics in which the Government has little or no interference in the economy

10. Capitalist Concepts
In Capitalism:
The people (consumers) set the prices and production amounts of goods
People have the ability to own businesses and buy stock
Ideally, people make what they are worth and there is always incentives to work harder in order to make more money

11. Terms Utilitarianism Socialism means of production Communism
Proletariat
laissez-faire

12. Assignment
You are the lead economist of a brand new start up country. Choose a economic system that your government will implement for your country. Explain why you believe this system is most suitable for your country. Include the economic systems founder and its basic beliefs.