Group members:

1. Anak Agung Mas Pratiwi (1907531049) (01)

2. Dea Ayu Agustina (1907531121) (02)
3. Tiara Hanifah Budika Putri (1907531122) (03)
4. Putu Indah Cahya Pratiwi (1907531123) (04)
5. Mega Nadia Aprilia (1907531124) (05)
6. Made Ariadi Sudarmayasa (1907531125) (06)
Class: R. IA 3.6 (A7/ UNO 107)

Summary-

Capitalism
Property- We should be most familiar with capitalism because, this is the economic
system that we live every second of every day of our lives. First we're gonna talking about
property under capitalism. In capitalism, property is owned by private individuals. You as
individual can own private property. Now, we're talking about capital assets. A capital asset
is an asset itself that can generate capital. So, it can generate a profit on it own. For example,
a bussiness real estate, if the market is increasing cash and if you invest it or put in a bank
account against interest as a capital asset stocks and bonds that you might purchase as a
capital assets. Things that are not capital assets but that are still property are things like a
pencil or a piece of paper or your clothing or perhaps your computer or your television.

Capital gains (profits) - So, A capitalistic society think capital gains as profit. In a
capitalistic system you get to own the capital assets and also have rights to the profits that
capital asset generate. For example, if you're on a home over time it increases in value and
you sell that home, you as an individual that owns that home are entitled to the profits of that
asset same as if you as an individual owned a business, you are entitled to the profits of that
business.

Production and Allocation of goods and services - In a capitalistic system, goods

and services are produced and distributed according to the price mechanism (supply and
demand). We're not going to in-depth lecture about the supply and demand curves, but just in
really simplistic sense. Supposing, you are a capitalist and own a business, how are you going
to decide what to be produced? The simple answer is you’re going to produce in things that
have high demand. If people want something, you will produce that thing and sometimes you
may even produce a good and then generate the demand. So, if there’s incredible demand for
a product, you can demand an incredibly high price. If there’s not a lot of demand, you’ll
have a really much lower price. So really simplistic version that’s how we decide what to
produce and how much to sell it for and how to allocate it in a capitalistic society based on
demand of that good.

Labor - In any capitalistic society, labor is purchased and sold for money wages.
Labor itself is a capital asset (an employee possess a capital asset). A businessman can
purchase that capital asset from you for a set price. So, let's say your get paid $15 an hour,
you have to agree to sell your labor for that hourly wages and your employer has agreed to
purchase a capital asset from you hourly. The labor value in capitalistic society also follows
the supply and demand model. So, if there's an incredible supply of labor (high
unemployment) then wages will be low because there's a lot of employees to choose from and
there will be competition between those employees for work. If there is hardly any available
labor or let's say you own a business that needs really specialized technical talent, you might
have to offer a higher wage for that because, there's not as much of a supply. So in a
capitalistic system labor itself is a capital asset. Some different versions of capitalism just
showing an idea of different system and how they look. Because, not all capitalistic societies
are the same. So the first one let's talk about free market capitalism. Free market capitalism
refers to an economic system where prices for goods and services are set freely by the forces
of supply and demand. This market are allowed to reach their equilibrium point without
intervention by government policy. So, free market is exactly that completely free, no kind of
outside influences, no government intervention, the prices are allowed to set themselves and
reach this point of equilibrium based purely on consumer behavior and supply. A social
market version of capitalism is a nominally free market system where the government
intervenes and price formation but that's kept to a minimum and the state provides significant
services in the area of society security, unemployment benefits, recognition of labor rights,
etc. State capitalism consists of state ownership of the means of production so state
ownership of capital assets and the state enterprise, the government is a commercial profit
seeking business so that state actually owns. In state capitalism, the capital assets and they
operate as a regular corporation to generate profit. This one is close to socialism. Next, we
have corporate capitalism. It is a free or mixed market characterized by the dominance of
hierarchical bureaucratic corporations. So corporate capitalism is a catholic system that is
made up largely of huge corporations that manage the economy and finally these are all the
versions of capitalism duders a few last moments as a mixed economy which is largely
market-based private and public ownership of the means of production and economic
intervention. ISM through macroeconomic policies is intended to correct market failures,
reduce unemployment and keep inflation low so this is basically a combination of all of the
others the United States. We have a mixed economy most capital assets are owned by private
individuals, but some are owned by government institutions. As an example car springs. The
utilities company collard springs is owned by the government so that's a capital asset owned
by the government the government absolutely. In the US version of capitalism intervenes in
the market usually through things like subsidies and tax breaks those types of things to
provide benefits for certain corporations to manage the market and manage prices in theory to
try to prevent any catas trophic.