Capitalism, Socialism & Mixed Economies.
Capitalism
Socialism.
A way of organizing a society in which major industries are owned and controlled by the government rather than by individual people and companies.
- Under Socialism, the government owns the major industries and promises to make production decisions for the welfare of society
- In socialist economies, few businessmen are willing to risks with capital because much of the profit goes to the government in the form of high taxes.
- Between 1989 & 1991, socialist governments fell like dominoes in Eastern Europe & the Soviet Union.
1.What is Capitalism?
2.What is Socialism?
3.What is Mixed Economies?
4.List 1 fact about Capitalism and 1 for Socialism.
5. List 2 facts about Mixed Economies.
Mixed Economies.
Capitalism.
"The issue is always the same: the government or the market. There is no third solution."
Ludwig Von Mises.
A free-market economy in which anyone may go into business in attempt to make profit: most businesses are privately owned instead of government owned.
- Most western countries follow a system of capitalism.
- Anyone can start a business & attempt to profit financially.
A mixed economic system allows a level of private economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
- Countries whose socialist economies collapsed adopted a mixed economy that attempt to combine elements of capitalism and socialism.
- Private citizens can own property & businesses, but the government closely regulates their choices.
- In spite of socialism's poor record, even some leaders in capitalist countries have sought to move toward mixed economies.
- In 2005, the wealthiest capitalists in the world were Inguar Kamprad, the Swedish founder of the IKEA retail furniture chain.
"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of the greatest good of everyone."
John Maynard Keynes