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  • Capitalism

    1. 1. Capitalism Samantha Cohen Hannah Sadosky
    2. 2. What is Capitalism? <ul><li>An economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled </li></ul><ul><li>Means of production are privately owned and production is guided </li></ul><ul><li>Income is distributed through the operation of markets </li></ul>
    3. 3. Synonyms for Capitalism <ul><li>Free market economy </li></ul><ul><li>Free enterprise economy </li></ul>
    4. 4. History of Capitalism <ul><li>Has been dominant in the western world since the breakup of feudalism </li></ul><ul><li>Dates from the 16 th century </li></ul><ul><li>Pre capitalist nations existed in the ancient world </li></ul><ul><li>pockets of capitalism were present in later European middle ages </li></ul>
    5. 5. The Development of Capitalism <ul><li>The growth of the English cloth industry during 16 th , 17 th , and 18 th centuries </li></ul><ul><li>Capitalism was different from other previous systems: </li></ul><ul><ul><li>excess production over consumption </li></ul></ul><ul><ul><li>enlargement of productive capacity rather than to invest in unproductive practices such as the pyramids or cathedrals </li></ul></ul><ul><li>World war I turning point for capitalism </li></ul><ul><li>The great depression brought an end to laissez-faire in the 1930’s </li></ul>
    6. 6. Capitalist Countries <ul><li>Over 80% of countries in the world today use capitalism such as: </li></ul><ul><ul><ul><li>United States </li></ul></ul></ul><ul><ul><ul><li>Britain </li></ul></ul></ul><ul><ul><ul><li>United Kingdom </li></ul></ul></ul><ul><ul><ul><li>Cuba </li></ul></ul></ul><ul><ul><ul><li>Japan </li></ul></ul></ul><ul><ul><ul><li>China </li></ul></ul></ul>
    7. 7. Government Planning <ul><li>There is no government planning in a pure capitalist nation </li></ul>
    8. 8. Government Interference <ul><li>The only government interference is in protecting citizens </li></ul><ul><li>Constitution and Bill of Rights protects individuals rights </li></ul><ul><li>Laws: legal system, criminals punished </li></ul><ul><ul><ul><li>Police officers enforce the laws </li></ul></ul></ul><ul><ul><ul><li>Court systems prosecute the laws </li></ul></ul></ul>
    9. 9. Advantages <ul><li>Can own property or businesses </li></ul><ul><li>Can produce wealth </li></ul><ul><li>No government interference </li></ul><ul><li>Law and order </li></ul><ul><li>Bankruptcy protection </li></ul><ul><li>Patents and copyrights </li></ul><ul><li>Banking regulation and insurance </li></ul><ul><li>Consumer holds power in the economy </li></ul>
    10. 10. Disadvantages <ul><li>Rich get richer, the poor get poorer </li></ul><ul><li>It’s not accepted in most societies </li></ul><ul><li>People in power limit diversity and competition (weakens the system as a whole) </li></ul><ul><li>The consumer holds power in the economy </li></ul>
    11. 11. Government Structure <ul><li>Operates in a democracy </li></ul><ul><li>Free enterprise system </li></ul><ul><li>State and federal regulations to keep the market safe for the customers and consumers </li></ul><ul><li>Laissez faire government (“leave to do”) </li></ul>
    12. 12. Land Ownership <ul><li>Anyone can own property </li></ul><ul><li>They can use their land for almost anything they want such as open a business or have a farm </li></ul><ul><li>They can also rent their house on their property </li></ul>
    13. 13. Business Ownership <ul><li>Everyone has the right to start a business </li></ul><ul><li>People have the right to produce whatever they want </li></ul><ul><li>People also have the right to distribute their products </li></ul>
    14. 14. Competition <ul><li>Sellers want a profit, customers want quality goods </li></ul><ul><li>Competition: the rivalry among sellers for consumers money </li></ul><ul><li>Competition benefits society: </li></ul><ul><ul><ul><li>improves quality of products </li></ul></ul></ul><ul><ul><ul><li>development of new products </li></ul></ul></ul><ul><ul><ul><li>lower prices </li></ul></ul></ul><ul><ul><ul><li>Allows individuals to start businesses and make more competition </li></ul></ul></ul>
    15. 15. Profits <ul><li>Definition: The incentive and reward for producing goods and services </li></ul><ul><li>subtract costs from revenue </li></ul><ul><li>Profits are usually over estimated </li></ul><ul><li>sometimes there is a loss not a profit </li></ul><ul><li>Must produce goods and services that there is a demand for to make a profit </li></ul>
    16. 16. Consumer Choice <ul><li>The right of the customer to be able to choose what products or goods they want and where they want to get them </li></ul><ul><li>Consumer choice is always possible in a capitalist country </li></ul><ul><ul><li>You can choose whether you want a cheese burger from MacDonald's or Burger King </li></ul></ul><ul><ul><li>You can choose if you want Nike sneakers or Addidas </li></ul></ul><ul><ul><li>You can choose if you want a notebook from Staples or CVS </li></ul></ul>
    17. 17. Labor Unions <ul><li>Labor unions were formed because of bad working conditions such as: </li></ul><ul><ul><ul><li>low wages </li></ul></ul></ul><ul><ul><ul><li>Long hours </li></ul></ul></ul><ul><ul><ul><li>Unsafe working conditions </li></ul></ul></ul><ul><li>Labor unions are allowed in capitalist nations and some jobs even require you to join the unions </li></ul>
    18. 18. Taxation <ul><li>Taxes provide revenue for the country’s government </li></ul><ul><li>The country then uses this money to serve its people </li></ul><ul><li>Taxation makes it hard for people to get rich </li></ul>
    19. 19. Careers and Employment <ul><li>Many jobs are possible in a capitalist society </li></ul><ul><li>You could work in a factory or even own the factory </li></ul><ul><li>There are many jobs in politics too such as governor, senate, or even president </li></ul>
    20. 20. Works Cited <ul><li>Leone, Bruno. Capitalism . 2. St. Paul, Minnesota: Greenhaven Press, 1986. </li></ul><ul><li>Ceanothus, Bayeu. “Capitalism.” Encyclopedia Britannica. 15.1998. </li></ul><ul><li>Amy, Douglas J.. &quot;Capitalism Requires Government.&quot; Capitalism Requires Government . 2007. Politics at Mount Holyoke College. 16 Mar 2009 < d=13&p=1>. </li></ul><ul><li>&quot;What is Capitalism?.&quot; World Socialist Movement . 13-8-2006. World Socialist Movement. 16 Mar 2009 <>. </li></ul><ul><li>Everard, Kenneth E., and James L. Burrow. Business Principles and Management . 10th ed. cincinnati, Ohio: South Western Educational Publishing, 1996. </li></ul>