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Major drawbacks: Neglects aspects of distribution. Those with nothing to exchange are left
outside the marker. Pure capitalism does not provide for public goods. E.g. sewers, streets,
defense etc
SOCIALISM
An economic system in which productive tools (e.g. land) and the means of producing goods
and services (labor and capital) are collectively owned & used for the collective good.
Has some characteristics
Collective ownership of property
Pursuit of collective good.
Government control of the economy.
Some advantages:
Central planning
Equitable resource distribution
RELATIVE ADV. OF
CAPITALISM & SOCIALISM
Capitalist societies considerably more economically productive.
Socialist societies display considerably less income and wealth disparity.
Statistics and data not enough to compare overall well-being in either system.
Capitalist characterized by more civil liberties & political freedom.
OTHER ECONOMIC
SYSTEMS
Communism: All members of society are socially equal. No society has achieved true
communism.
Democratic Socialism: Economic and political system that combines significant government
control of the economy with free elections. Found in some European countries.
State Capitalism: Economic and political system in which companies are privately owned by
cooperate closely with the government.
Welfare Capitalism: Economic and political system that combines a mostly market-based
economy with extensive social welfare programs. Found in some European nations.
WORK IN THE POST-
INDUSTRIAL ECONOMY
Accompanied by a transformation from agric to factory then service work.
This manifests in dual labor market: Primary and Secondary Labor Market
1. High income/pay
2. Personally/challenging and intrinsically satisfying jobs.
3. Job security
4. Internal labor markets (career paths/promotional or ladders)
SECONDARY LABOR
MARKET
Jobs providing minimal benefits to workers.
Jobs mainly blue-collar requiring low skills.
Some are low-level white-collar jobs. e.g. clerical positions.