Socialism vs. Capitalism Flipbooks - Left and Right

Definitions (Tab #1 ) Socialism (on the Left) 1. A System of social organization where groups or groups of individuals own land, factories, and other major means of production and distribution is owned, managed, or controlled by The Government (state Socialism), by Associations of workers, (guild socialism), Or by the Community as a whole (Collectivism) 2. A political system advocating or associated with this system.

Definitions cont. Capitalism (on the Right) 1. An economic system in which private individuals own the means of production. They compete with one another using the hired labor of other persons, to produce goods and services for profit: the characteristic feature of modern capitalism mass production of goods destined for mass consumption (Newsweek) 2. The concentration of wealth with its power and influence in the hands of a few.

Theorists (Tab #2) Marx (1818- 1883) Social Theorist Socialism Marx (1818- 1883) Social Theorist 1. Elaboration of Conflict Model of society 2. Social change is based on antagonisms (Conflict) between the social classes. 3. Power originates primarily in economic production. 4. Concern with the social origins of Alienation

Theorists cont. Capitalism Adam Smith (1723-1790) A Scottish Economist Godfather of Laissez Faire Capitalism: Inquiry into the Nature and Causes of the Wealth of Nations, written in 1776 a logical vision of how society was shaped by the private decisions of entrepreneurs and consumers alike.

Description (Tab #3) - Socialism 2. Egalitarianism - 1. Democracy - Government must be answerable and responsive to the wishes of the public they serve. THE TEST: Who is making the decisions and whose Interests are being served??? 2. Egalitarianism - equality opportunity for self-fulfillment of all. Everyone is equally valued… Each gets what they need Each contributes what they can…

Socialism Description cont. 3. Public Ownership - The People own the basic industries Financial institutions, utilities, transportation, and communication companies. The goal is serving the public NOT making a profit. 4. Efficiency- requires central planning to provide, least cost, (individual and collective) best conditions to meet the needs of its citizens. achieve societal goals (i.e. protecting the environment, combating pollution, saving natural resources, and developing new technologies) Policy (i.e. regulation) is decided on the needs of the public (and the economy is organized to achieve them)

- Capitalism Description 1. Private Property Individuals are encouraged to own not only Private possessions but most important, the money necessary to produce goods and services. 2. Unlimited Personal Profit - Profit- individuals are free to maximize personal gains

Capitalism Description cont. 3. Competition - the market forces of supply and demand will ensure that capitalist will produce the goods and services 1. Wanted by the public 2. High in quality, 3. Sold at the lowest possible prices 4. Will keep potential abuses (fraud, faulty products, and high prices) in check. NOTE: The existence of competitors will take business from those who violate good business judgment. or are inefficient. 4. Laissez Faire - Any government intervention (regulation) will take away incentives and freedom of choice. BELIEF: If left alone this system will achieve the greatest good for the greatest number of people in the form of individual self-fulfillment and general material progress of society.

Benefits (Tab #4) Socialism Everyone has a say according to Marx Everyone has a say Everyone gets what they need Everyone benefits Equality All members are valued No exploitation

Benefits cont. Capitalism Individual freedom freedom of choice Incentive Chance to excel Political and religious freedom Small government involvement

Criticisms (Tab #5) Socialism Large Bureaucracy Little incentive to invest Large Bureaucracy Too much government control Needs of the many outweigh Needs or freedom of individual Too dependent on government Holds the individual back

Criticisms cont. Capitalism Monopolies / Interlocking Directorates Concentration of Wealth Monopolies / Interlocking Directorates Lack of representation in government Inequality Poverty Waste of resources, (both natural and human)