Adam Smith (Book: Wealth of Nations).”the great
object of the political economy of every country is to
increase the riches and the power of that country”.
Karl Marx said how individuals organize
themselves to satisfy the material needs.
Max weber (protestant ethic) said that capitalism evolved
in northern Europe when people organized themselves
and engaged in developing enterprise and engaging in
trade and accumulation of wealth.
Veblen said that production is a social process in
which people shared knowledge that passed from
generation to generation.
TYPES OF CAPITALISM
Mercantilist capitalism-to increase the power and
A painting of a French seaport from
1638 at the height of mercantilism.
Corporate capitalism characterized by private
ownership determined by prices and private
Free market capitalism where ownership is in private
hands and production and distribution is determined
by supply and demand forces.
State capitalistic system-in which commercial
activities are undertaken by state in capitalistic
BENEFITS OF CAPITALISM
Provides Choice to customers.
Provides valuable goods and services.
Capitalism actively rewards positive
traits like hard work.
Similarly, it punishes negative traits
such as laziness and theft.
Provides opportunity to realize dreams
FEATURES OF SOCIALISM
Social Ownership of means of
Existence of public sector.
Decisive role of Economic Planning.
Production guided by Social Benefits.
Abolition of exploitation of labour.
FORMS OF SOCIALISM
BENEFITS OF SOCIALISM
Fulfills survival need.
Opportunity for citizens to explore noneconomically-productive pursuits.