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capitalismaneconomicandpoliticalsysteminwhichacountry'stradeandindustryare

controlledbyprivateownersforprofit,ratherthanbythestate:marketeconomy

1. practiceownership
2. individualinitiative
3. profit
4. competition

privateownership
goodsandservicesheldasprivateproperty
meansofproduction,distributionandexchangeareprivatelyownedandmanaged

Individualinitiative
anypersonorgroupcantakerisksandreceivethereward

Profit
therewardsgivenfortheinitiativeshownwhatisleftafterallbusinessexpensesare
paid

Competition
thebestproduceatthelowestprice
theeffortoftwoormorepartiesactingindependentlytosecurethebusinessofathird
partybyofferingthemostfavorableterms
acontestbetweenrivals

Laissezfaire
adoctrineopposinggovernmentalinterferenceineconomicaffairsbeyondtheminimum
necessaryforthemaintenanceofpeaceandpropertyrights
protectcompetitionandsupplyanddemand
government:handsoff

laissezfairegovernmenthavealimitedrole:
1. foreignrelationsandnationaldefense
2. police/courtmaintenancesafety
3. anyfunctionthatcannotbeperformedforprofit

intheUSA:mixedeconomy
1. privatebusinessesaresupportingbygovernmentregulation
2. governmentprotectspublicinterest
3. governmentpreservesprivateenterprise

Socialism
thepeoplecontroltheownershipofproduction,distributionandexchange

themeansbywhichgoodsandservicesareproducedarepubliclyownedandmanaged

Historyofsocialism
meanttobeapubliclyrunsystembutinpractice,toobigatasktobepubliclymanaged
becameagovernmentruneconomicsystem

Twodifferenttypesofsocialism
evolutionarysocialism
communism
commontheme:capitalismisbad
Equalityofcondition

EvolutionarySocialism
gradualandpeaceful
workswithintheexistingframeworkof(democratic)government
government'sroledeterminedbyfreeelections,notapoliticalparty

Howevolutionarysocialismworks:
NAtionalizationthegovernmenttakesovercertainbusinesses,suchasbanking,
communicationsandtransportation
Someprivatebusinessesstillexist,butwithextensivegovernmentregulation.Also
calledacommandeconomy
providesforthepublicwelfareofcitizens
Theaim?
toevenlydistributewealth

Opponentsofevolutionarysocialismbelieve:
Norewardswillkillindividualinitiative
Riskofdictatorshipbecausegovernmentalreadyhassomuchcontrol

Communism:
BasedonthewritingsofKarlMarxandFriedrichEngels
communistsManifesto1848
daskapital1867

CommunisticIdeology
4parttheory
1. theoryofhistory
2. labortheoryofvalue
3. theoryofthenatureofthestate
4. conceptofthedictatorshipoftheproletariat
TheoryofHistory

inallhistorytherehavebeenclassstruggles
theoppressorvstheoppressed
thecapitalistvstheworker
BourgeoisieProletariat
Downfallinevitable
(revolutionwillhelpspeedthingsup)

Labortheoryofvalue
thevaluedeterminedbyhumanlaborneeded
profitgoestotheworker

Thenatureofthestate
thestateservesasaninstrumenttokeeptheproletariatinbondage
violentandbloodyrevolutionneededtoeffectchange
religionisahoaxmeanttomakeworkerstolerateaharshlife

Dictatorshipoftheproletariat
proletariatisnotcapableofgoverningitself
needguidancefromthecommunistparty,atotalitarianregimethatwillcreate
afree,classlesssociety

CardinalPrincipleofcommunism
fromeachaccordingtohisability,toeachaccordingtohisneed

Traditionaleconomy
anoriginaleconomicsysteminwhichtradittions,customs,andbeliefsshapethegoodsandthe
productsthesocietycreates