capitalism vs socialism 2

8/12/2019 Capitalism vs Socialism 2

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Capitalism vs socialism

By;

Group 4


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IDEOLOGY

Capitalism Socialism

Competition Cooperation


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CAPITALISM

Capitalism is a social system based on the principle ofindividual rights The term capitalism is used here in thebroaderphilosophical political sense, and not in the

narrower economic sense, i.e. a free-market.

Capitalism is the foundation for the economies of England,

Canada, Australia, and most developed nations.

There is no control in the supply and demand in themarket.


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History of capitalism

In the late 19th century, large areas of industry came

under the control and direction of financiers. Defined as

finance capitalism.

Around 1950, capitalism entered a new phase as people

wanted more goods than the economy could provide.Demand exceeded supply, and we lived in shortage

capitalism.

After World War II, we shifted into excessive capitalism,

with no limit to production but shortage of buyers.


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Capitalism has 2 types of

classes

Capitalist class -

Which are the producers and suppliers

Working class -

Which are the working people who work

under the capitalist class.


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Advantages of capitalism

Efficient Allocation of Resources.

Efficient Production.

Dynamic Efficiency.Financial Incentives.


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Disadvantages of capitalism

Inequality

Irrational Behavior

Monopoly BehaviorImmobility


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Free Market/CapitalismCenter of the system is

the free market in which

businessmen compete

with each other, and the

forces of supply and

demand determine theprices received for goods

and services

Demand curve
http://en.wikipedia.org/wiki/Image:Supply-demand-P.png


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SOCIALISM

Socialism is a political term applied to an economic

system in which property is held in common and not

individually, and relationships are governed by a political

hierarchy.

Socialism as we know it today, most commonly refers to"market socialism," which involves individual market

exchanges organized by collective planning.


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History of socialism

The history of socialismfinds its origins in the FrenchRevolution of 1789 and the changes brought about by the

Industrial Revolution.

The Australian Labour Party\ was the world's first elected

socialist party when the party won the 1899 Queenslandstate election, with Anderson Dawson its Premier and first

head of a socialist government anywhere in the world.


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Advantages of Socialism In environments with plentiful resources, socialism

provides all members with their survival needs, creating a

stable social environment.

Members that cannot participate economically - due to

disabilities, age, or periods of poor health - can still impartwisdom, emotional support and continuity of experience

to the system.

Freedom from work provides opportunity for some

societal members to explore non-economically-productive

pursuits, such as pure science, math and non-popular arts.


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Disadvantages of Socialism

Since there is no culling and no economic advantage to

working harder, socialistic systems provide no inherent

incentive to participate. This makes socialism internally

unstable.

Due to a lack of incentives, socialistic systems tend not to

be competitive, making them externally unstable.

In times of plenty, immigrants are drawn to the free

resources offered by socialistic systems, while potentially

adding nothing economically productive.

In times of scarcity, resentment of non-economically-productive members of society increases, causing a

destabilizing effect on the society and economy.


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Capitalism vs socialism

capitalism It encourages inequality

Private business is owned

by private individuals

It is more efficient becauseof competition

There is a problem of

unemployment.

Price of a product candiffer

Its main motive is profit

and self interest

socialism It ensures equality

The state owns the means

of production and in some

cases by worker

cooperatives

It is inefficient because of

lack of competition.

There is full employment

because the state often

directs it.

Price of a product is fixed.

Its main motive is social

welfare


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USSR

The last Czar was Nicolas II autocratic.

Bloody Sunday after getting defited from Japan 1905

Vladimir Ilych Lenin, influenced by principle of Karl

Max,organized the revolution.

USSR was found as the first socialist nation, Lenin diedin 1924.


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USSR

Stalin took over in 1924 and made tremendous change in

the country

Collective farming, development of industries, space

tecnology,defence flourished under him soviet union

played an important role in second world war

First satellite, Sputnik and first man to space Yurin

Gagarin.

Iron curtain was relaxed, mixed economy was declared. In

1991 soviet union fell.


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Tsar nicolas II

Stallin

sputnik

Vladimir llych Lenin

Karl max


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CUBA

After the independence in 1898 Americans had great

influence over Cuba.

The US army stayed in Cuba from1899 to1902 for

maintaining peace.

A young lawyer named Fidel Castro became the dictator ofCuba in 1959.

After the cold war in which Cuba sided with Sovient union

Castro established its political and economic reforms

called communism.

Sugarcane harvest got developed.


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CUBA

After some time tourism surpassed sugarcane harvest.

Communist agricultural production system came into

existence.

Cuba now is now a well developed country.

After the fall of Soviet union Cuba took limited freemarket-oriented measures to alleviate severe shortages of

food, consumer goods, and services.

Then it gradually stepped into socialism.

The sugarcane harvest and tourism was the main

economic strength.


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Fidel Castro


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CHINA

Hong Kong island itself was founded as a British colony

by agreement with China in 1842.

he colony was established as a "Freeport," which meant

that free trade was guaranteed by the Royal Navy.

China made it its source of income and the people overthere dose not matter to china.

china granted freedom to Hong Kong which they keep

on violating.


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CHINA

Milton Friedman recognizes the reality that China'sSpecial Economic Zones will be perpetually fostering

political freedom because of their economic freedom.

Beijing will not find the resulting demands for freedom

acceptable, and will act accordingly, by enforcing

authoritarian rule on all political freedom and ultimatelyon the economic freedom which fosters it as well.

There is precedent for this assertion: After Tiananmen,

the Shenzhen stock exchange was closed, all economic

reforms were halted, and border controls into the zone

were tightened; these controls lasted for nearly twoyears, until this April. Beijing clearly values maintaining

control over maintaining the economic zones;

Presumably the same logic and course of action will

apply to Hong Kong after 1997.


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USA

the Americans have out carried world communism by: making the world safe for American corporations.

enhancing the financial statements of defense contractors

at home who have contributed generously to members of

congress.

preventing the rise of any society that might serve as a

successful example of an alternative to the capitalist

model.

extending political and economic hegemony over as wide

an area as possible, as befits a "great power.

The United States carried out extremely serious

interventions into more than 70 nations in this period.


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USASome e.g. of USA exploitation are:

Italy:

usa interfaced in the elections of Italy to prevent

communism to spread in Europe.

Germany:

The CIA orchestrated a wide-ranging campaign ofsabotage, terrorism, dirty tricks, and psychological

warfare against East Germany. This was one of the factors

which led to the building of the Berlin Wall in 1961.

South Korea, 1945-53:After World War II, the United States suppressed thepopular progressive forces in favor of the conservatives

who had collaborated with the Japanese. This led to a long

era of corrupt, reactionary, and brutal governments.


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SINGAPORE

Singapores one striking parallelism to BNW is its one-

party rule since Independence that has assumed an

almost parental authority over its citizens.

One man, Lee Kuan Yew, has led that one party since

1965. Forty years of psychological conditioning by this

parent party.

everyone knows the State is above the individual and the

family; that to achieve productive efficiency is the primary

function of a Singaporean. Everything else is secondary.

More than half of the major businesses in Singapore arestate-owned.

They account for sixty percent of the countrys GDP.


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SINGAPORE

With no natural resources (even water supply is

inadequate), no agriculture, and little manufacturing of its

own, Singapore has entered deep into international

financial markets and services but all at the expense of

individual freedom.

no legal political rival is allowed to exist in competition

with the ruling party, and yet the country has achieved

high economic status with a relatively strong currency

compared to the other countries of the region.

Freedom therefore is not a pre-requisite for Capitalism in

Singapore.

Singapore is the perfect model that those in control of the

world would want subservient states to follow.


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capitalism vs socialism 2

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