1. Economic Theories
Guided Reading 1.4

2. Economic Theories Chart
Capitalism
Socialism
Communism
Ownership of Property
Principle of Operation
Choice of Work
Wages
Profits
Government’s Role
Government’s Involvement
Amount of Competition
Production Decisions

3. Economic Theories Chart
Capitalism
Socialism
Communism
Ownership of Property
Private
Government
Principle of Operation
Best for all of society
Government makes al decisions
Choice of Work
Yes No
Wages
Dependent on market
Set by Government
Profits
Equitable distribution
Government’s Role
Ensure free competition
Welfare State
Full time responsibility
Government’s Involvement
Free Market
Extensive social services
Heavy
Amount of Competition
High
None
Production Decisions
Nationalization
Command Economy

4. Welfare/Workman’s Comp
The United States has ELEMENTS of Socialism since we are a MIXED ECONOMY
Any example of Government Programs is socialism
Public library
Social Security
MedicareMedicaid
Welfare/Workman’s Comp
President Obama’s Health Care
Public Education
Highway System
PennDot
Amtrak
So many more…
Police and Fire Department