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ISMS in Political EconomyINTRODUCTIONIn the last century, the world has been divided into great economic and political systems (The Three ISMS):CapitalismCommunismSocialismCAPITALISMAn economic system in which most resources are privately owned and people are free to choose their occupation.People are searching for profit and there is substantial amount of competitionCAPITALISMThree aspects of Capitalism:1. The institution of private ownership is generally accepted.

Shareholders and StockholdersCAPITALISMThree aspects of Capitalism:2. People are free to pursue their own economic self-interests, that is work for personal gain.

Free-enterprise SystemCAPITALISMThree aspects of Capitalism:3. Because people are motivated by self interest, they compete with each other to make a better product in order to maintain or obtain more profit

CAPITALISM Three aspects of Capitalism above = A Pure Capitalism = Capitalism without tax laws, licences to buy, government ownership of enterprises, and government regulations20th Century Capitalism- In some countries Mixed Capitalism = Mixture of free and privately owned enterprises with government intervention.

COMMUNISMThe people themselves, not the government, own the means of production.Everyone works at what he or she can do best. And no system of wages or profits needed to spur people to work.COMMUNISMEveryone takes from what is produced whatever he or she needs to live comfortably.No government supervises what the people do.Communism is considered Ideal.COMMUNISM

KARL MARXMAO TSE-TUNGLENINFamous CommunistsSOCIALISMThe government owns and operates/controls the major industries of the countryFrance and Italy = major industries are nationalizedSweden is another example = extensive welfare programsSOCIALISM Socialism = not dictatorship.

Socialism = exists in democratic and authoritarian countries

Socialisms Existence = To overcome Capitalisms two important problems: Unequal distribution of income and wealth and Uneven course of economic growth with periods of Boom and Bust