1. Economic Philosophy * adpoted from http://www.slideshare.net/amitkishoresinha/capitalism-socialism-mixed-economyhttp://www.slideshare.net/amitkishoresinha/capitalism-socialism-mixed-economy

2. Definitions Economics is the social science that analyses the production, distribution and consumption of goods and services. An economic system is the system of production, distribution and consumption of goods and services within a particular society. An economic system is composed of people and institutions (like a government or company), and the relationship between the two.

3. Different Economic Systems So an economic system is the way in which a country (or province or city) divides up its resources and distributes goods and services to the country’s people. So what are the different economic systems, and what makes them different?

4. Types of Economies SocialismMixed Capitalis m L eft R ight Combinations of Socialism & Capitalism

5. Capitalism; the “Free Market” An economic system in which the means of production are privately owned, and operated for profit, usually in competitive markets In other words it is an economic system in which ownership of the production and distribution of goods and services is usually by private individuals or corporations.

6. Class & Capitalism The majority of the world uses some form of capitalist system. The small minority of people who own the means of production and distribution (factories, land, technology, transportation…) are the capitalist class. The majority of people must sell their ability to work in return for a salary or wage, this is the working class.

7. Pros & Cons Pros provides choice for consumers provides valuable goods and services rewards hard work & punishes laziness works well with democracy usually small black markets Cons self interested accumulates wealth in the hands of a few encourages inequality in society tends to exploit people results in large gaps between the capitalist and working classes

8. Socialism; the Planned Economy Socialism is an economic system where the means of production and distribution are held commonly by the citizens (everyone owns). However political decisions are not usually made by everyone; instead the government makes decisions for the common good. The primary goal of socialism is equality and an even distribution of wealth that is based on how much you contribute to society rather than how much money you have.

9. Pros & Cons Pros better salaries eliminates poverty system focuses on things other than just the pursuit of material wealth Cons suppresses individual freedom slower economic growth and advancement (less competition) reduces incentives for people to work

10. Mixed Economy Any economic system in which both public (owned by all the people) and private (owned by individuals or corporations) exist side by side, and the free market is balanced by some form or partial planning is a mixed economy. Canada is an example of such an economy… land for example can be privately owned or be Crown land (owned by the government and therefore the people in general). Crown land can be leased from the government and used, but is monitored to ensure standards are met.

11. continued Mixed economies operate on a free market concept, but with limits. For example essential things like power or water might be controlled by the government to ensure everyone has access. In Canada this includes health care. Generally the government will try to interfere in the economy only to prevent problems or issues. These economies still have inequality, but less than a system that is more purely capitalistic.