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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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