The document provides an overview of socialism as both an economic system and political ideology. It discusses key aspects of socialism such as public rather than private ownership of the means of production and economic resources being distributed in a fair manner as decided by the government. Strengths of socialism mentioned include guaranteed minimum standards of living and greater equality, while weaknesses include reduced individual freedom and incentive as well as potential for large bureaucracies. The document also contrasts socialism with capitalism and communism on various factors.

1. COMPARING ECONOMIC
SYSTEMS
• Socialism …
• Both an economic system and a political
way of thinking

2. • What does it say or preach?
• A nation’s wealth should be distributed to
everyone in a fair way. How can this be
done?

3. • Ownership in Socialism –
• Ownership of most of the means of
production is public rather than private.
The government, not the individual is the
center of the economy

4. Gov’t Econ

5. “ You have two cows. The government takes them and puts them in a barn
with everyone else’s cows, then gives you as much milk as it thinks you need.”

6. • Based on the idea of cooperation and
social responsibility

7. Socialism
• Equality
• The ideas is not just political equality
but social and economic as well.
Which of the above do we have in the
U.S.? Why?

8. Democratic Socialism
Under this system, people have basic
human rights and have some control over
the government officials through free
election.
- however, the government does own the basic means of
production and makes most economic decisions.

9. Socialism Strengths
• Guarantee minimum standard of living
“cradle to grave”
• Evens out differences - makes people more
equal
• Workers enjoy full “fruit of labor”
• Full employment
• End of poverty
• Production is geared toward use not profit
• People have more control over their lives?

10. Socialism Weaknesses
• Complicates government (bureaucracy)
• Robs human incentive
• Too much government control
• Individual freedom is secondary to
state needs
• High taxation and redistribution of
wealth

11. History
• Came about after the Industrial
Revolution
• The Rich got richer and the poor…….
• Great suffering by the workers

12. In industrialized nations…
Population is divided between the:
•Bourgeoisie – capitalist who own the
means of production
•Proletariat- workers who produce the goods

13. • Karl Marx began to criticize capitalism

14. • Two thoughts
– Change would come through a violent and
bloody revolution
– Change would come through peaceful
means

15. • Socialist Changes
Und capitalist society
vill have to go
through a series of
changes

16. • Nationalization

17. • The Welfare State (Social Programs)

18. • High Taxation

19. • Command Economy

20. Socialists Countries
• Northern Europe
– Sweden
– Finland
• France
• Some south American Countries
– Venezuela

21. Communism
• A political system in which the government
owns all property and is ruled by one party
with complete control over the economy.
• No private property will exist
• Every person will work for the welfare of all
• “From each according to his ability, to each
according to his need”

22. Economy
Government
Communism

23. “You have two cows. Your neighbors help you take care of
them, and everyone shares the milk.”

24. Imagine – John Lennon
Imagine

25. Cartoon Ronald Reagan implements Socialism - YouTube
cap vs soc vs comm

27. Time for the Quiz

28. Ownership of Property?
- PUBLIC/GOV’T
- PRIVATE/INDIVIDUAL
- BOTH
• Capitalism-
• Socialism-
• Communism-

29. Principle of Operation?
• FREE ENTERPRISE/COMPETITON
• FAIR DISTRIBUTION OF WEALTH
• CENTRAL/GOV’T CONTROL
• Capitalism-
• Socialism –
• Communism-

30. Choice of Work?
– OPEN/FREE CHOICE
– REGULATED
• Capitalism-
• Socialism –
• Communism-

31. Government Involvement?
• GOV’T OWNS BASIC INDUSTRIES/PROVIDES SOCIALSERVICES
• GOV’T OWNS ALL INSUSTRIES
• GOV’T INVOLVEMENT KEPT TO A MINIMUM
• Capitalism-
• Socialism –
• Communism-

32. Amount of Competition?
– COMPETITON IS LIMITED
– COMPETTITON IS PROMOTED
– THERE IS NO COMPETTITON
• Capitalism-
• Socialism –
• Communism-

33. Promoters of Economic System?
• Karl Marx
• Adam Smith
• Capitalism
• Socialism & Communism

34. Capitalism
• Pro
– Rewards individual success
– Individual success leads to common good
• Con
– Competition leads to winners and losers
– Not all succeed

35. Socialism
• Pro
– All share equally the benefits of production
– No winners and losers
• Con
– No competition - efficiency goes down
– High taxes

36. Communism
• Pro
– Full employment
– citizens get what they need
• Con
– Gov’t decides rewards
– Few luxuries

37. Article
• Cuba Pins Hopes on New Farms Run For Profit,
Washington post, 2009

38. Article
• Cuba To Cut State Workers in Tilt
Towards Free Market, Sept, 2010
– Market-oriented, subsides, privatization,
private sector
– % of gov’t workers in Cuba?
– What obstacles do Cubans who go in to
business face?