The presntation content include; Capitalism Characteristics of Capitalism Advantages of Capitalism Disadvantages of Capitalism Examples of capitalist countries socialism Advantages of socialism Disadvantages of socialism examples Communism advantages of communism Disadvantages of communism examples

1. Capitalism
Socialism
and
Communism
Economic Models

2. Economic Models
Topic: Capitalism

3. Capitalism

4. Capitalism
Capitalism:
“Capitalism is an economic and political system based on private ownership, in this system
the country’s trade and industry is controlled by private owners for profit, rather than by
government. “
Key Points:
In capitalism, owners control the factors of production and derive their income from
it.
Capitalism incentivizes people to maximize the amount of money they earn through
competition.
Competition is the driving force of innovation as individuals create ways to
accomplish tasks more efficiently.
In this system the production of goods and services is based on supply and demand
in the general market which is known as market economy.

5. Capitalism
Characteristics:
In this system there is no equality the rich becomes richer and the poor becomes poorer.
In this system the government usually relies on private sector.
Modern capitalist systems usually include market oriented economy, in which the production and
pricing of goods, as well as income of individuals are dictated to a greater extent market forces
resulting from interactions between private businesses and individuals than by central planning by
the government.
Capitalism is built on the concepts of private property, profit motive and market competition.
Another component of capitalism is the free operation of the capital markets. The laws of supply
and demand set fair prices for stocks, bonds, derivatives, currency, and commodities.

Capital markets allow companies to raise funds to expand.

6. Capitalism
Advantages of Capitalism:
Capitalism results in the best products for the best
prices because consumers will pay more for what they
want the most.
Businesses provide what customers want at the highest
prices they’ll pay, and prices are kept low by competition
among businesses. They make their products
as efficiently as possible to maximize profit.
Most important for economic growth is capitalism's
intrinsic reward for innovation, including new products
and more efficient production methods.

7. Capitalism
Disadvantages of Capitalism:
Capitalism doesn't provide for those who lack competitive skills, including
the elderly, children, the developmentally disabled, and caretakers. To keep
society functioning, capitalism requires government policies that value the
family unit.
Capitalism does not promote equality of opportunity, inequality may seem
to be in the best interest of capitalism's winners.
Capitalism ignores external costs, such as pollution and climate change.
This makes goods cheaper and more accessible in the short run, but over
time, it depletes natural resources, lowers the quality of life in the affected
areas, and increases costs for everyone.

8. Capitalism
Examples:
The United States is one example of capitalism, but it
doesn't rank among the 10 countries with the freest markets,
according to the Index of Economic Freedom. It bases its
ranking on nine variables, including​ a lack of corruption, low
debt levels, and protection of property rights.
The top 10 most capitalistic countries are:
Hong Kong
Singapore
New Zealand
Switzerland
Australia
Ireland
United Kingdom
Canada
United Arab Emirates
Taiwan

9. Economic Models
Topic: Socialism

10. Socialism

11. Socialism
Socialism:
“Socialism is an economic system where everyone in society equally owns the factors of
production.
That ownership is acquired through a democratically elected government or through a
cooperative or a public corporation in which everyone owns shares. ”
Key Points:
Socialists take into account both individual needs and greater social needs. They allocate
resources using central planning, as in a command economy.
Everyone in society receives a share of the production based on how much each has
contributed.
This system motivates them to work long hours if they want to receive more. Workers receive
their share of production after a percentage has been deducted for the common good.
The four factors of production are labor, capital goods, natural resources, and, in the modern era,
entrepreneurship.

12. Socialism
Characteristics:
Socialism is a system that shares economic output equally throughout the
population.
It values the collective well-being of the community, rather than individuals.
The government distributes resources, giving it greater control over its
citizens.
There are eight different kinds of socialism, each with their own priorities
and economic styles.

13. Socialism
Advantages of Socialism:
Under socialism, workers are no longer exploited
because they own the means of production. Profits are spread
equitably among all workers according to their individual
contributions. But the cooperative system also provides for
those who can't work. It meets their basic needs for the good
of the whole society.
The system eliminates poverty. It provides equal access to
health care and education. No one is discriminated against.
Everyone works at what one is best at and what one enjoys.
If society needs jobs to be done that no one wants, it offers
higher compensation to make it worthwhile for people to take
them.
Natural resources are preserved for the good of the whole.

14. Socialism
Disadvantages of Socialism:
The biggest disadvantage of socialism is that it relies on the cooperative nature of humans to
work.
It ignores those within society who are competitive and focus on personal gain. Those people
tend to seek ways to overthrow and disrupt society for their own benefit.
socialism doesn't reward people for being entrepreneurial. It struggles to be as innovative as a
capitalistic society.
A third disadvantage is that the government has a lot of power. This works as long as it
represents the wishes of the people. But government leaders can abuse this position and claim
power for themselves.

15. Socialism
Examples:
There are no countries that are 100% socialist, according to
the Socialist Party of the United Kingdom.
Most have mixed
economies that incorporate socialism with
capitalism, communism, or both.
The five Nordic countries Norway, Finland, Sweden,
Denmark, Iceland have strongly socialist systems. The
state, on behalf of the people, owns a large percentage of
the economy. It spends a large portion on education,
housing, and public welfare. A large percentage of its
workers are unionized, granting them greater power. Last
but not least, these countries are democracies, allowing the
general population input into decision making.
But these countries also incorporate many aspects of a
capitalistic economy. As a result, its inhabitants are among
the happiest in the world, regularly placing among the top
10 on lists of the world's happiest people.

16. Economic Models
Topic: Communism

17. Communism

18. Communism
Communism:
“Communism has a centrally planned economy, it is the economic and political system of
social organization in which all property is owned by community and each person
contributes and receives according to their abilities and needs.”
Key Points:
The state owns all land, machines, industries, buildings and infrastructure. Personal property is
abolished.
In communist system a system of central planning is introduced where the state sets production
targets for all goods and services.
Communism is based on the idea of a class struggle.
Communism is based on equality social classes are absent in this system.

19. Communism
Characteristics:
Abolition of property in land and application of all rents of land to public purposes.
A heavy progressive or graduated income tax.
Abolition of all right of inheritance.
Confiscation of the property of all immigrants and rebels.
Equal liability of all to labor and establishment of industrial armies (especially for agriculture).
The gradual abolition of the distinction between town and country.
Free education for all children in public schools and abolition of children's factory labor.
Centralization of credit in the hands of the state.
The state would control communication and transportation.
The state factories and instruments of production would cultivate wastelands and improve the soil.

20. Communism
Advantages of Communism:
Communism has a centrally planned economy; it can quickly
mobilize economic resources on a large scale, execute
massive projects, and create industrial power.
 It can move so effectively because it overrides individual
self-interest and subjugates the welfare of the general
population to achieve critical social goals.
It instructed the government to protect the rights of all to
pursue their idea of happiness.
 It sees income inequality as a sign of late-stage
capitalism and believe that capitalism's flaws mean it has
evolved past its usefulness to society.

21. Communism
Disadvantages of Communism:
The most significant disadvantage of communism stems from its elimination of
the free market.
The laws of supply and demand don't set prices the government does. Planners
lose the valuable feedback these prices provide about what the people want.
They can't get up-to-date information about consumers' needs, and as a result,
there is often a surplus of one thing and shortages of others.
To compensate, citizens create a black market to trade the things the planners don't
provide, which destroys the trust in Marx's pure communism.
People no longer feel the government can give "to each according to his needs."

22. Communism
Examples:
There are few remaining communist countries in the world.
They aren't pure communism but are transitioning from
socialism, where the state owns the components
of supply. According to Marx, that is a necessary midway
point between capitalism and the ideal communist
economy. Modern communist societies rely on a mixed
economy.
China
Laos
Cuba
Vietnam
North Korea

23. Communism
Other Example in history:
In 1922, the Union of Soviet Socialist Republics was
established .
By 1991 the USSR was dissolved.
In 1955, the USSR created the Warsaw Pact with other
communist military allies.
The USSR had many other communist allies. Many
became communist in the 1970s but shifted to another
form of government after the USSR collapsed.
After the collapse of the Soviet Union, Russia changed
its constitution to remove references to communism. It
describes itself as a democratic republic.