1. Economic Theories

2. Economics
Economics – “The study of human efforts to satisfy seemingly unlimited wants through the use of limited resources” (p. 26)
What
How
Who

3. Capitalism (yay!)
“Free Enterprise” - “Gov't puts no limits on freedom of buyers and sellers to make economic decisions” (p. 27)
Privatized
Free enterprise
Competition
Freedom
Potential profits

4. Capitalism (yay!) People work to gain/acquire
This is different from...
Wealth should be used aggressively

5. Capitalism (yay!) Adam Smith & laissez-faire Scottish philosopher
Wrote, “Wealth of Nations”

6. Capitalism (yay!) What does Capitalism need to survive?
Capitalism requires...
People to make decisions
Competition to be present

7. Capitalism (yay!) History (double yay!!)
United States is prime example of successful capitalism...
...but are we pure?
Government doesn't get too involved in private business...
...or does it? ”

8. Capitalism (yay!) Government expansion Protection Acts
Economic Disasters ”

9. Capitalism (yay!) Mixed-Market Economy
Free Enterprise combined with government decisions
Still considered capitalistic system because of an emphasis on individual freedom ”

10. Socialism Public or collective ownership of the means of production
Equality over achievement
Input over Output
While capitalism is based on a price system, profit and loss and private property rights, socialism is based on bureaucratic central planning and collective ownership. Proponents of socialism believe that it creates equality and provides economic security and that capitalism is an inferior system that exploits workers for the benefit of a small, wealthy class. Critics of socialism believe that it is based on faulty principles and ignores human nature and the role of incentives in economic transactions. ”

11. Socialism Three gooooooooals
Distribute wealth and economic opportunity equally
Society controls economic/production decisions
Public owns factories
While capitalism is based on a price system, profit and loss and private property rights, socialism is based on bureaucratic central planning and collective ownership. Proponents of socialism believe that it creates equality and provides economic security and that capitalism is an inferior system that exploits workers for the benefit of a small, wealthy class. Critics of socialism believe that it is based on faulty principles and ignores human nature and the role of incentives in economic transactions
Democratic Socialism – Government owns means of production. ”

12. Communism One class would emerge in a Communist system
Command Economy – all decisions are made by government planners ”