The document provides an overview of the key differences between capitalism and communism. Under capitalism, individuals are allowed to own private property and keep the profits from their work. There is no safety net for those who are poor or sick. Communism aims to create a classless society where the means of production are publicly owned and operated. Housing, food and other necessities are provided by the government. Everyone is treated equally and shares the same economic status under communism.

1. Capitalism vs. Communism
Milad
Jangalvaee(MIKE)

2. -Food and housing should be
paid for by the government.
There should be no upper
class or lower class- everyone
should be treated the same and
have the same
Communism

3. You will allow to keep all the
money you make.
If you are poor or sick, there is no
“safety net”, meaning you must rely
on friends or your family to support
you
Capitalism

4. Capitalism
Milad Jangalvaee BM-627 Entrepreneurial Finance
Pr. Pedro Pellet

5. 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?

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

8. 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.

9. 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.

10. Capitalism
 Ideas:
 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.

11. Capitalism
 Government should not
interfere in the economy.
Laissez faire

12. 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.

13. 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

14. 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.

15. 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.

16. 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.

17. COMMUNISM

18. Steps of Communism
•Marx and Engels studied the history of Communism
the world’s economies.
•This means the way that power,
industry and finance are controlled.
•They saw the way countries developed Socialism
in stages.
Capitalism
Feudalism
Primitive
Communism

19. 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?

20. 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.

21. Who Made This

Communist? Manifesto’ in
Those Blokes’ wrote the ‘Communist
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.

22. What Mean Symbol Of
Communism
This is the symbol of
Communism-The
Hammer and the
Sickle.

23. 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.

24. 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.

25. 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.

26. 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.

27. 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.

29. 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

30. 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)

31. THANKS FOR YOUR
ATTENTION

32. 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);