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
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
