Economic system based on
- private ownership of property and the means of prod
-the investment of $ in bus ventures to make a profit
-businesses compete w/one another for consumers $
-each business tries to provide goods and services that are better and less
expensive than their competition
-progress results when individuals follow their own self-interests
-government should not interfere in the economy-laissez-faire
-capital belongs to individuals who are free to do what they wish with it
-based on the economic laws of supply and demand
*when enough people want something producers make it b/c they want to make a profit
*buyers and sellers are free to exchange goods and services at prices determined by
supply and demand
-when the amount DEMANDED is greater than the amount SUPPLIED prices tend to go up
-when the amount SUPPLIED is greater than the amount DEMANDED prices tend to go down
-competition--> progress
-people have control over their own businesses
Economic system in which the means of production and key infrastructure are owned by the
public/society aka the government & operate for the welfare of all
-everyone within society should benefit from capitalism as much as possible
-providing for the needs of all members of society will ultimately benefit society
-allows for capitalism as long as it’s controlled
-government actively regulates the economy
>focuses on working within capitalism rather than trying to eliminate classes all together
>focuses on regulation and taxation rather than overthrowing the established government
-relies on government planning not the free market to distribute resources
-offers lots of public services funded by taxpayer money
Government provides services such as
-education-healthcare-free or low cost housing and transportation
Often have social welfare programs to aid the
the government should act to protect workers and consumers
-rather than competition goods should be distributed according to each person’s needs
Should create more
Social equality-public education/housing
Economic equality-less disparity between rich and poor
-believes cooperation is better than competition
Negatives-no incentive for working hard/new ideas
-the government is often inefficient in running businesses
Economic & political system in which all the means of production are owned by the people
-private property does not exist
-all goods and services are shared equally
-wealth would be redistributed
-classes and private property would cease to exist
-history is shaped by economic forces-the way goods are produced and distributed
-class struggle has always existed between the
haves-bourgeoisie capitalists
have nots-the proletariat-the working class
-poverty and desperation will drive the masses of workers to
>seize control of the government and the
means of production
>destroy the capitalist system
>establish a dictatorship of the proletariat
-after the dictatorship of the proletariat occurs
>all property and means of production will be owned by the people
>all goods and services are shared equally
>the state withers away and a classless society emerges
In reality, communism brought about a system of government in which the state is
led by a small elite group which
-controlled all economic and political life
-exercised authoritarian control over the people
-no incentive for working hard/new ideas