This document provides an overview of communism and capitalism. It defines communism as an economic system where wealth is distributed evenly and the government controls everything, while defining capitalism as a free market system based on supply and demand where citizens have power. Some negatives of communism listed are it being undemocratic and centralized government control, while negatives of capitalism include it creating unequal social classes and a wealth gap between rich and poor.

1. Communism vs.
Capitalism
Social Studies
6th Grade

2. Create T-Chart in Your notebook
Communism Capitalism

3. What is Communism?
Economic system where wealth is
distributed evenly (in theory)
Opposite of Capitalism
Idea is to give all citizens equal
wealth and social status
There is no difference between
citizens
Examples: China, North Korea, Cuba

4. Negatives of Communism
Tend to be undemocratic
Benefits only a few at the expense of the
majority of citizens
Power is in the hands of few people (Gov’t
leaders)
Centralized government- controls everything
Most communist countries are struggling and
unsuccessful
Citizens receive the same pay no matter how
hard they work= less effort from employees

5. Video
http://www.brainpop.com/socialstud
ies/economics/communism/

6. What is capitalism?
Economic system where people compete
to make money
Considered a “free market/ free
enterprise”
Based on supply and demand
Opposite of Communism
Power is in the hands of citizens
Examples: United States, Germany

7. Negatives of Capitalism
Capitalism creates unequal social
classes based on wealth
The majority of business owners end
up gaining the most wealth while the
work is done by regular citizens
Gap between the rich and the poor
Believed to create strife between
workers and factory owners