Capitalism vs. Command
Economy

A) Capitalism
 1) capitalismeconomic system in which production and the means to produce are owned and controlled by private owners and groups.

A) Capitalism
 1) capitalismeconomic system in which production and the means to produce are owned and controlled by private owners and groups.
 a. government plays a limited role

A) Capitalism
 1) capitalismeconomic system in which production and the means to produce are owned and controlled by private owners and groups.
 a. government plays a limited role
 b. market determines how resources are distributed

B) Command Economy
 1) command economyan economic system in which decisions on the basic economic questions are made by the gov’t

II) Reasons for a Command
Economy (Chinese Gov’t)

II) Reasons for a Command
Economy (Chinese Gov’t)
 A) In a capitalistic economy, people will make things that make them the richest and not be able to meet all of the needs of the people

II) Reasons for a Command
Economy (Chinese Gov’t)
 A) In a capitalistic economy, people will make things that make them the richest and not be able to meet all of the needs of the people
 1. Make goods for the rich, and not for the poor

II) Reasons for a Command
Economy (Chinese Gov’t)
 B) Government should control production and allocation of resources

II) Reasons for a Command
Economy (Chinese Gov’t)
 B) Government should control production and allocation of resources
 1. This would be more efficient, lead to less waste and little or no unemployment

II) Reasons for a Command
Economy (Chinese Gov’t)
 C) In capitalism, you generally have very wealthy and very poor

II) Reasons for a Command
Economy (Chinese Gov’t)
 C) In capitalism, you generally have very wealthy and very poor
 1. Because command is not concerned with profit, resources are distributed equally and there is a more level economic standing