Economic SystemsEconomic Systems

CapitalismCapitalism

1.1. Individuals are free to own propertyIndividuals are free to own property2.2. Individuals and companies are free to Individuals and companies are free to

compete for their own economic gaincompete for their own economic gain3.3. Free market forces determine the prices Free market forces determine the prices

of goods and servicesof goods and services

U.S. is based on this, however,U.S. is based on this, however,No society exits with true capitalism idealsNo society exits with true capitalism ideals

““Greed is Good”Greed is Good”

CommunismCommunism

1. Government owns all resources1. Government owns all resources

2. Government determines what should be 2. Government determines what should be producedproduced

3. Individuals do not benefit directly from 3. Individuals do not benefit directly from their worktheir work

4. “Classless” society4. “Classless” society

SocialismSocialism

1.1. Government owns major enterprises, Government owns major enterprises, individuals own less critical businesses.individuals own less critical businesses.

2.2. Developed due to social inequalities of Developed due to social inequalities of capitalism (The rich get richer)capitalism (The rich get richer)

3.3. Citizens pay higher taxes in return for Citizens pay higher taxes in return for benefits such as health care and day benefits such as health care and day care.care.

Market Economy Market Economy (Mixed)(Mixed)

1.1. Market forces (supply and demand) and Market forces (supply and demand) and some govn’t involment move the some govn’t involment move the economyeconomy

2.2. No central body regulates the economyNo central body regulates the economy

3.3. Freedom of individual choiceFreedom of individual choice

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