1. COMPARING ECONOMIC SYSTEMS Socialism … Both an economic system and a political way of thinking

2. What does it say or preach? A nation’s wealth should be distributed to everyone in a fair way. How can this be done?

3. Ownership in Socialism – Ownership of most of the means of production is public rather than private. The government, not the individual is the center of the economy

4. Gov’tEcon

5. “ You have two cows. The government takes them and puts them in a barn with everyone else’s cows, then gives you as much milk as it thinks you need.”

6. Based on the idea of cooperation and social responsibility

7. Socialism Equality The ideas is not just political equality but social and economic as well. Which of the above do we have in the U.S.? Why?

8. Democratic Socialism Under this system, people have basic human rights and have some control over the government officials through free election. - however, the government does own the basic means of production and makes most economic decisions.

9. Socialism Strengths Guarantee minimum standard of living “cradle to grave” Evens out differences - makes people more equal Workers enjoy full “fruit of labor” Full employment End of poverty Production is geared toward use not profit People have more control over their lives?

10. Socialism Weaknesses Complicates government (bureaucracy) Robs human incentive Too much government control Individual freedom is secondary to state needs High taxation and redistribution of wealth

11. History Came about after the Industrial Revolution The Rich got richer and the poor……. Great suffering by the workers

12. In industrialized nations… Population is divided between the: Bourgeoisie – capitalist who own the means of production Proletariat- workers who produce the goods

13. Karl Marx began to criticize capitalism

14. Two thoughts –Change would come through a violent and bloody revolution –Change would come through peaceful means

15. Socialist Changes Und capitalist society vill have to go through a series of changes

16. Nationalization

17. The Welfare State (Social Programs)

18. High Taxation

19. Command Economy

20. Socialists Countries Northern Europe –Sweden –Finland France Some south American Countries –Venezuela

21. Communism A political system in which the government owns all property and is ruled by one party with complete control over the economy. No private property will exist Every person will work for the welfare of all “From each according to his ability, to each according to his need”

22. Economy Government Communism

23. “You have two cows. Your neighbors help you take care of them, and everyone shares the milk.”

24. Imagine – John Lennon Imagine

25. Cartoon Ronald Reagan implements Socialism - YouTube

27. Time for the Quiz

28. Ownership of Property? - PUBLIC/GOV’T - PRIVATE/INDIVIDUAL - BOTH Capitalism- Socialism- Communism-

29. Principle of Operation? FREE ENTERPRISE/COMPETITON FAIR DISTRIBUTION OF WEALTH CENTRAL/GOV’T CONTROL Capitalism- Socialism – Communism-

30. Choice of Work? –OPEN/FREE CHOICE –REGULATED Capitalism- Socialism – Communism-

31. Government Involvement? GOV’T OWNS BASIC INDUSTRIES/PROVIDES SOCIALSERVICES GOV’T OWNS ALL INSUSTRIES GOV’T INVOLVEMENT KEPT TO A MINIMUM Capitalism- Socialism – Communism-

32. Amount of Competition? –COMPETITON IS LIMITED –COMPETTITON IS PROMOTED –THERE IS NO COMPETTITON Capitalism- Socialism – Communism-

33. Promoters of Economic System? Karl Marx Adam Smith Capitalism Socialism & Communism

34. Capitalism Pro –Rewards individual success –Individual success leads to common good Con –Competition leads to winners and losers –Not all succeed

35. Socialism Pro –All share equally the benefits of production –No winners and losers Con –No competition - efficiency goes down –High taxes

36. Communism Pro – Full employment – citizens get what they need Con –Gov’t decides rewards –Few luxuries

37. Article Cuba Pins Hopes on New Farms Run For Profit, Washington post, 2009

38. Article Cuba To Cut State Workers in Tilt Towards Free Market, Sept, 2010 –Market-oriented, subsides, privatization, private sector –% of gov’t workers in Cuba? –What obstacles do Cubans who go in to business face?