1. Economic Systems:
Capitalism vs Communism

2. Annual Income Average
Drop out = $24, 544
HS Diploma =$33,852
Associate’s = $40,404
Bachelor’s =$57,616
In 2016, 83% HS grad rate

3. Capitalism: What is it?
economic system
investing capital--anything of value--with the
specific purpose of making a profit
production is based on what people want

4. wrote The Wealth of Nations
fair competition leads to prosperity
laissez-faire
“invisible hand” = market forces
(supply & demand)
importance of consumerism and
expansion
Adam Smith

5. Role of the gov. in capitalism
• in theory, it is laissez-faire
• in practice....
• subsidies and tax breaks
• stimulus plan
• trade
• cash flow
• CPSC, OSHA
• Social Security
• depends!

6. • wrote The Origins of
Species by Means of
Natural Selection
• survival of the “fittest”
• connection to capitalism
Charles Darwin

7. Critique of Capitalism
The Wall Street Journal
Nov. 2015
Brookings Institute 2013

8. Critique of capitalism: socialism and communism
• capitalism leads to suffering
• everyone should be equal
• public should own the means of production
• cooperation over competition
• production is based on what people need

9. Communism
• “Workers of the world unite!”
• history is based on class struggle
• opposed surplus value
• opposed religion and exploitation
• supported free education for children

10. What’s the difference between
socialism & communism?
• private property
• social classes
• stage of development
• true communism has NEVER existed