Capitalism vs. Socialism Created by: Tammy Twiggs

Definition of Capitalism According to Dictionary.com, Capitalism is… an economic system an economic system investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations

Definition of Socialism According to Merriam-Webster, Socialism is… Government ownership and administration of the means of production and distribution of goods Government ownership and administration of the means of production and distribution of goods A system of society or group living in which there is not private property A system of society or group living in which there is not private property A system or condition of society in which the means of production are owned and controlled by the state A system or condition of society in which the means of production are owned and controlled by the state

Capitalism vs. Socialism Capitalist countries: America America Canada Canada Brazil Brazil Japan Japan Mexico Mexico Socialist countries: Cuba Saudia Arabia Iran North Korea Burma

Mixed Economy According to dictionary.com, a Mixed economy is: An economy in which some industries are privately owned and others are publicly owned or nationalized An economy in which some industries are privately owned and others are publicly owned or nationalized Many capitalist economies are mixed economies (some capitalism and some socialism) Many capitalist economies are mixed economies (some capitalism and some socialism)

Pros and Cons of Capitalism Pros Competition to provide goods and services keeps prices low Competition to provide goods and services keeps prices low Rewards hard work Rewards hard work Provides choice Provides choice Allows for the building up of wealth and possessions Allows for the building up of wealth and possessions Consumers regulate the market Consumers regulate the market Cons Exploits people who cannot compete Uneven distribution of wealth Creates a money-oriented society Constant economic growth may deplete the earth’s resources

Pros and Cons of Socialism Pros All members share benefits All members share benefits Those who cannot contribute may still participate (disabled, elderly) Those who cannot contribute may still participate (disabled, elderly) Each member’s survival needs are met Each member’s survival needs are met Equal distribution of wealth Equal distribution of wealth No socioeconomic classes No socioeconomic classes Cons No incentive to work harder No competition means no reward to be innovative New members to the community (immigrants) are seen as competition for limited goods and services Higher taxes

Which is best: Capitalist economy, Socialist economy, or a Mixed economy? A free market exists with some regulation by the government A free market exists with some regulation by the government People can create their own businesses and make a profit People can create their own businesses and make a profit All businesses pay taxes, which benefit everyone All businesses pay taxes, which benefit everyone

Government subsidized programs Postal service Postal service Rail lines Rail lines Libraries Libraries Health care Health care Social programs Social programs Roads Roads Infrastructure (bridges, freeways, etc.) Infrastructure (bridges, freeways, etc.) Can you think of any others? Can you think of any others?