2. • What does it say or preach?
• A nation’s wealth should be distributed to
everyone in a fair way. How can this be
done?
3. • Ownership in Socialism –
• Ownership of most of the means of
production is public rather than private.
The government, not the individual is the
center of the economy
5. “ You have two cows. The government takes them and puts them in a barn
with everyone else’s cows, then gives you as much milk as it thinks you need.”
6. • Based on the idea of cooperation and
social responsibility
7. Socialism
• Equality
• The ideas is not just political equality
but social and economic as well.
Which of the above do we have in the
U.S.? Why?
8. Democratic Socialism
Under this system, people have basic
human rights and have some control over
the government officials through free
election.
- however, the government does own the basic means of
production and makes most economic decisions.
9. Socialism Strengths
• Guarantee minimum standard of living
“cradle to grave”
• Evens out differences - makes people more
equal
• Workers enjoy full “fruit of labor”
• Full employment
• End of poverty
• Production is geared toward use not profit
• People have more control over their lives?
10. Socialism Weaknesses
• Complicates government (bureaucracy)
• Robs human incentive
• Too much government control
• Individual freedom is secondary to
state needs
• High taxation and redistribution of
wealth
11. History
• Came about after the Industrial
Revolution
• The Rich got richer and the poor…….
• Great suffering by the workers
12. In industrialized nations…
Population is divided between the:
•Bourgeoisie – capitalist who own the
means of production
•Proletariat- workers who produce the goods
21. Communism
• A political system in which the government
owns all property and is ruled by one party
with complete control over the economy.
• No private property will exist
• Every person will work for the welfare of all
• “From each according to his ability, to each
according to his need”
31. Government Involvement?
• GOV’T OWNS BASIC INDUSTRIES/PROVIDES SOCIALSERVICES
• GOV’T OWNS ALL INSUSTRIES
• GOV’T INVOLVEMENT KEPT TO A MINIMUM
• Capitalism-
• Socialism –
• Communism-
32. Amount of Competition?
– COMPETITON IS LIMITED
– COMPETTITON IS PROMOTED
– THERE IS NO COMPETTITON
• Capitalism-
• Socialism –
• Communism-
33. Promoters of Economic System?
• Karl Marx
• Adam Smith
• Capitalism
• Socialism & Communism
34. Capitalism
• Pro
– Rewards individual success
– Individual success leads to common good
• Con
– Competition leads to winners and losers
– Not all succeed
35. Socialism
• Pro
– All share equally the benefits of production
– No winners and losers
• Con
– No competition - efficiency goes down
– High taxes
36. Communism
• Pro
– Full employment
– citizens get what they need
• Con
– Gov’t decides rewards
– Few luxuries
37. Article
• Cuba Pins Hopes on New Farms Run For Profit,
Washington post, 2009
38. Article
• Cuba To Cut State Workers in Tilt
Towards Free Market, Sept, 2010
– Market-oriented, subsides, privatization,
private sector
– % of gov’t workers in Cuba?
– What obstacles do Cubans who go in to
business face?