Milad Jangalvaee(MIKE)

Capitalism vs. Communism

-Food and housing should -Food and housing should be paid for by the be paid for by the government.government.

There should be no There should be no upper class or lower upper class or lower class- everyone should be class- everyone should be treated the same and treated the same and have the samehave the same

CommunisCommunismm

You will allow to keep all the You will allow to keep all the money you make.money you make.

If you are poor or sick, there If you are poor or sick, there is no “safety net”, meaning is no “safety net”, meaning you must rely on friends or you must rely on friends or your family to support you your family to support you

CapitalisCapitalismm

CapitalismCapitalism

Milad Milad JangalvaeeJangalvaee

BM-627 Entrepreneurial FinancePr. Pedro Pellet

Capitalism

How would you define “capitalism”?

What other words come to mind when you think of the word “capitalism”?

Are these associations positive or negative?

CapitalismCapitalism – an

economic system based on private ownership and on the investment of money in business ventures in order to make a profit.

Adam Smith A Scottish political economist and moral

philosopher (1723-1790).

His Inquiry into the Nature and Causes of the Wealth of Nations (1776) founded the modern discipline of economics and provided the rationale for free trade, capitalism and libertarianism.

Physiocracy Smith criticized physiocracy, which

taught that wealth originated in land.

Smith argued that labor was the major source of wealth and that the division of labor was the key to economic growth.

As productivity rises, wages will rise.

CapitalismIdeas:

Businesses compete with each other for the consumer’s money.

Each business tries to provide goods and services that are better and less expensive than their competition.

Capitalism Government should

not interfere in the economy.Laissez faire

The Invisible Hand The free market appears chaotic and

unrestrained.

Actually, it is guided by “an invisible hand” to produce the right amount and variety of goods.

If a product shortage occurs, the price rises, establishing a profit margin that provides an incentive for others to enter production.

Types of capitalism 2 Types of capitalism

2.1 Mercantilism

2.2 Free-market capitalism

2.3 Social market economy

2.4 State capitalism

2.5 Corporate capitalism

2.6 Mixed economy

2.7 Other

Understanding CAPITALISM

You are in charge of your life and the means to work to support yourself.You can choose to run your own business

Capitalism can lead to materialism- the belief that material goods and money are the most important things on the planet.

You get the highest quality of products for the cheapest prices.

Understanding CAPITALISM

If you are poor or sick, there is no “safety net”, meaning you must rely on friends or your family to support you (with money and otherwise). 

You can become extremely rich if you work hard, know the right people, and/or are born into the right family.

Understanding CAPITALISM

You vote with your dollars. If you don't like at Store A, you can always shop at Store B.  If no one shops at Store A it will shut down.

You have the right to own property, which comes with the right to do what you wish on it (build a house, a business, etc.).

There is no minimum wage in a true capitalism, which means business owners can pay you as little as they like.

COMMUNISMCOMMUNISM

Steps of Communism

PrimitiveCommunism

Feudalism

Capitalism

Socialism

CommunismCommunism•Marx and Engels studied the history of the world’s economies.•This means the way that power, industry and finance are controlled.•They saw the way countries developed in stages.

Communism How would you define “communism”?

What other words come to mind when you think of the word “communism”?

Are these associations positive or negative?

Communism An ideology that seeks to establish a future

classless, stateless social organization, based upon common ownership of the means of production and the absence of private property.

Who Made This Communist?

Those Blokes’ wrote the ‘Communist Manifesto’ in 1847. It’s a short book – but billions of people have read it…

This is Karl Marx, the ‘Father of Communism’. People who believe in his ideas are called ‘Marxists’

This is his good friend, Frederick Engels.

What Mean Symbol Of Communism

This is the symbol of Communism-The Hammer and the Sickle.

Atheism Marx was an atheist.

He believed that religion was “the opiate of the people.”

The owners of capital used religion to keep the peasants and workers subjugated by leading them to think, not of their present misery, of future happiness in heaven.

Understanding COMMUNISM

Everyone is treated equally by the government.

Personal rights and freedoms are reduced, as the government tells people what they can and cannot do.

Everyone has a job and is paid about the same amount of money.

Understanding COMMUNISM

Laws are oftentimes much more strict, as the government wants to make sure people act in a certain way.

There is healthcare for everyone, as the government provides it.

Everything belongs to the government- especially businesses.

COMMUNISM When you go to any store, there are fewer

choices and things are a bit more expensive than they could be.

There are many fewer choices when you buy things, as the government wants everyone to be equal and have the same/similar things.

Criticism of Communism

In the 20th century, it is estimated that 50 million people were killed in the name of communism.

Most of Marx’s predictions were wrong, such as that communist revolutions would occur only in industrial societies.

It is inconsistent with human nature.

It ignores the appeal of religion.

Capitalism

United States is Capitalist

Work for profit and wealth

Competition between people and businesses

Private ownership by people and businesses

“Free Market” trade, buy, sell without restrictions from government.

Capitalism helps society and people by making large profits and trickling down money

Communism seeks to establish a classless society (no

rich/poor)

Ideology created by German Karl Marx 1800s- Wants a Utopia (Perfect society)

common ownership of land, farms, factories (no private property)

Government regulates society to be “equal”

Sees profit as “theft” from working class

Stalin’s Communism was not for the people, but for power (Not Marx’s vision)

THANKS FOR YOUR ATTENTION

Refrences Communism Manifesto, Marks & Engels(1848)

See M. Beer, The General History of Socialism and Social Struggles (2 vol., tr. 1957);

Z. K. Brzezinski, Ideology and Power in Soviet Politics (rev. ed. 1967);

http://capitalismmagazine.com/2012/01/the-46-percent-who-pay-no-income-taxes/

R. Dunajevskaya, Marxism and Freedom (3d ed. 1971);

R. V. Daniels, ed., A Documentary History of Communism (2 vol., rev. ed. 1988);