This document discusses capitalism and compares capitalist systems in different countries. It addresses principles of capitalism, myths, economic crises, and the future of capitalism. Key points of comparison include legal systems, public opinions of capitalism, economic freedom indices, productivity, growth, and rankings on ease of doing business. The US generally demonstrates higher levels of economic freedom, productivity, and satisfaction with life compared to European countries discussed.

2.  Introduction
 What is Capitalism?
 Capitalist Principles
 Myths about Capitalism
 Economic Crises / Crises of Capitalism
 Future of Capitalism?

4.  Private Property
 Freedom of Contract
 Rule of Law
 Use of Reason
 Personal Liberty
 Voluntary exchange of Goods: Free Trade
 Democracy

5.  Protect Man’s Rights
 Put this Retaliatory Force under Objective
Control

6.  Freedom
 Equality
 Individualism
 Democracy
 Personal Property
 Laissez-Faire

7.  Rule of Law
◦ Transaction costs
◦ Lower Number of Business Deals
◦ Expenses to Verify your Business Partners
 Independent Judiciary
◦ High degree of Trust in Legal System
 Common Law vs. Civil Law (Just vs. Legal)
◦ Common Law (Singapore, Australia, GBR)
 Foreign Corrupt Practices Act
◦ Influences also business environment in the U.S.

8.  European Emigrants to the US
 Hard Working
 Entrepreneurial (BANKRUPTCIES)
 Rule of Law
 Can Do/Optimism Mentality
 American Dream
 Protestantism vs. Catholicism
 Religion (U.S. 94%, Italy 88%, France 56%, Germany
50%)

9.  Conservatives (C) vs. Liberals (L) debate:
 Capitalism works with values (C)
 Winners must take care of Losers (L)
 Forced help hurts everybody (C)
 Redistribution and Regulation (L)
 Redistribution discourages winners from
producing and losers from trying (C)

10.  Public Opinions (2002-2004)
 Welfare State vs. Freedom of Individual
◦ U.S. 34/58, GER 57/39, FRA 62/36, IT 71/24
 Success in Life: External Forces vs. Individual
◦ U.S 32/65, GER 68/31, IT 66/31, FRA 54/44
 Economic Competition is Positive
◦ U.S. 58, Germany 49, Italy 42, France 36

11.  Very Satisfied with Their Lives (2002-2003,%)
◦ U.S. 57, Italy 16, France 14, Germany 18
 Life has improved in the last 5 years
◦ U.S. 49, Italy 42, France 35, Germany 22
 Life will improve in the last 5 years
◦ U.S. 64, Italy 53, France 41, Germany 20

12.  Value of Free Time
◦ Europe vs. America
◦ Protestantism (Work is Blessing and Source of
Happiness given by God)
◦ Opportunity to get rich in the U.S. is higher
 Children should Learn Hard Work
◦ U.S. 60, France 50, Italy 36, Germany 22

13.  R&D Expenditures (GDP%)
◦ U.S. 2.67, France 2.2%, Germany 2.51%, Italy 1.07%
 Growth in Production high-tech goods
(2003)
◦ U.S. +419, France +242, Germany +52, Italy +69
◦ Data in %

14.  Employment
◦ U.S. (1970-2003) +58.9 million
◦ France, Germany, Italy + 17.6 million
 Real GDP per Capita (PPP, 2002)
◦ U.S. 34,000 USD
◦ France 24,000 USD
◦ Italy 25,000 USD
 Labor Productivity
◦ U.S. (1996–2003) +3.09%
◦ Germany (1996-2003) +1.6%

15.  American Capitalism is Very Positive (%)
◦ Italy 39 / 43
◦ Germany 32 / 58
◦ France 23 / 73
◦ Slovakia 52 / 40
◦ Ukraine 58 / 23
◦ Uzbekistan 76 / 11
◦ Former Communist Countries more Positive

16.  2010 Index of Economic Freedom
◦ 1. Hong Kong, 2. Singapore, 3. Australia, 8. U.S.,
23. Germany, 64. France, 74. Italy
 Economic Freedom of the World 2008
◦ 1. Hong Kong, 2. Singapore, 3. new Zealand, 6.
U.S., 24. Germany, 35. France, 66. Italy
 World Bank Doing Business 2010
◦ 1.Singapore, 2.New Zealand 3. Hong Kong 4. U.S.
25. Germany, 31. France, 78. Italy

17.  China Model - Free Market with Government
Intervention Prevented Crises
 Government Complete Control of Investments
and Currency (Short Term Victory)
 Corruption
 Imbalances in Economy
 Jimmy Lai: “System in China is Long-Term
Unsustainable and will Collapse”

18.  Selfish – but results in cooperation
 Greedy – but increased standard of living
 Nationalistic – but U.S. multiethnic society
 Cruel – but gives hope
 Source:
◦ Ayn Rand: Capitalism-The Unknown Ideal

19.  Role of Government
 Moral Consequences of Economic Growth
◦ Prosperity, Happiness, Rule of Law
◦ Winners and Losers
 Capitalism is Amoral
“NO SYSTEM CAN SURVIVE / FUNCTION
WITHOUT MORAL/ETHICAL VALUES”

20.  2 different types of Legal Systems?
 Country with most positive American
Capitalism opinions?
 What is ranking of U.S. according to Doing
Business 2010?