CAPITALISM! “ No other economic system in the history  of the world has been as successful” -Civics Textbook copyright 2008
What is Capitalism? <ul><li>An economic system in which private citizens own and use the factors of production in order to...
Not to be confused with  “FREE ENTERPRISE” <ul><li>This is simply another adjective used to describe the American Economy....
<ul><li>We operate under both headings; our economic system is known as:  </li></ul><ul><li>FREE MARKET CAPITALISM </li></ul>
What makes Capitalism Work? <ul><li>Markets </li></ul><ul><li>Economic Freedom </li></ul><ul><li>Private Property Rights <...
MARKETS <ul><li>Local, regional, national or global </li></ul><ul><li>They connect different sectors of the economy </li><...
Economic Freedom <ul><li>FACTOR MARKET - We get to choose what type of job to have…, and we can choose when and where we w...
Private Property Rights <ul><li>FACT: We can keep whatever we earn </li></ul><ul><li>FACT: We have the right to own our ow...
Competition <ul><li>The struggle between buyers and sellers to get the best products at the lowest prices </li></ul><ul><l...
Competition <ul><li>Competition  rewards the most efficient  producers </li></ul><ul><li>Competition  punishes the least e...
Profit Motive <ul><li>People are free to risk their savings or any part of their wealth in a business venture </li></ul><u...
Voluntary Exchange <ul><li>The act of buyers and sellers freely and willingly engaging in market transactions </li></ul><u...
Laissez-faire Economics <ul><li>French for “to let alone” </li></ul><ul><li>The founding principle of Capitalism </li></ul>
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Capitalism!

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Capitalism!

  1. 1. CAPITALISM! “ No other economic system in the history of the world has been as successful” -Civics Textbook copyright 2008
  2. 2. What is Capitalism? <ul><li>An economic system in which private citizens own and use the factors of production in order to seek a profit. </li></ul><ul><li>Based on free markets and private ownership </li></ul>
  3. 3. Not to be confused with “FREE ENTERPRISE” <ul><li>This is simply another adjective used to describe the American Economy. </li></ul><ul><li>Competition is allowed to flourish with a MINIMUM OF GOVERNMENT INTERFERENCE </li></ul>
  4. 4. <ul><li>We operate under both headings; our economic system is known as: </li></ul><ul><li>FREE MARKET CAPITALISM </li></ul>
  5. 5. What makes Capitalism Work? <ul><li>Markets </li></ul><ul><li>Economic Freedom </li></ul><ul><li>Private Property Rights </li></ul><ul><li>Competition </li></ul><ul><li>Profit Motive </li></ul><ul><li>Voluntary Exchange </li></ul>
  6. 6. MARKETS <ul><li>Local, regional, national or global </li></ul><ul><li>They connect different sectors of the economy </li></ul><ul><li>Chart of 522 – the one from the essay…. </li></ul><ul><ul><li>The Business Sector and Consumer Sector are connected through Factor Markets and Product Markets… </li></ul></ul><ul><li>Consumer Sovereignty </li></ul><ul><ul><li>The consumers decide what the businesses are producing </li></ul></ul>
  7. 7. Economic Freedom <ul><li>FACTOR MARKET - We get to choose what type of job to have…, and we can choose when and where we would like to work. </li></ul><ul><li>PRODUCT MARKET - Consumers have the Right to choose the products we buy. Businesses have the right to produce whatever they want </li></ul><ul><li>Comes with Consequences…… </li></ul>
  8. 8. Private Property Rights <ul><li>FACT: We can keep whatever we earn </li></ul><ul><li>FACT: We have the right to own our own property (“stuff”) </li></ul><ul><li>FACT: People take care of things better when they OWN them… </li></ul><ul><li>RESULT: People work hard so they can get more “stuff” to own. </li></ul>
  9. 9. Competition <ul><li>The struggle between buyers and sellers to get the best products at the lowest prices </li></ul><ul><li>Competition btw sellers drives prices down </li></ul><ul><li>Buyers compete to find the best “deals” </li></ul>
  10. 10. Competition <ul><li>Competition rewards the most efficient producers </li></ul><ul><li>Competition punishes the least efficient producers </li></ul><ul><li>The result of competition in Capitalism is: </li></ul><ul><ul><li>Efficient production, high quality products, more satisfied customers </li></ul></ul>
  11. 11. Profit Motive <ul><li>People are free to risk their savings or any part of their wealth in a business venture </li></ul><ul><li>Could go either way…. </li></ul><ul><li>Profit Motive is the driving force that encourages individuals to improve their material well being… </li></ul><ul><ul><li>They are trying to “make a profit” </li></ul></ul>
  12. 12. Voluntary Exchange <ul><li>The act of buyers and sellers freely and willingly engaging in market transactions </li></ul><ul><li>Both parties feel like they are getting a good deal…engaging in a beneficial exchange….a win-win situation… </li></ul>
  13. 13. Laissez-faire Economics <ul><li>French for “to let alone” </li></ul><ul><li>The founding principle of Capitalism </li></ul>
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