capitalism
TRANSCRIPT
Capitalism
Samantha CohenHannah Sadosky
What is Capitalism?
What is Capitalism?
An economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled
Means of production are privately owned and production is guided
Income is distributed through the operation of markets
An economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state-owned and controlled
Means of production are privately owned and production is guided
Income is distributed through the operation of markets
Synonyms for Capitalism
Synonyms for Capitalism
Free market economyFree enterprise economy
Free market economyFree enterprise economy
History of CapitalismHistory of Capitalism
Has been dominant in the western world since the breakup of feudalism
Dates from the 16th century Pre capitalist nations existed in the ancient world
pockets of capitalism were present in later European middle ages
Has been dominant in the western world since the breakup of feudalism
Dates from the 16th century Pre capitalist nations existed in the ancient world
pockets of capitalism were present in later European middle ages
The Development of Capitalism
The Development of Capitalism
The growth of the English cloth industry during 16th, 17th, and 18th centuries
Capitalism was different from other previous systems: excess production over consumption enlargement of productive capacity rather than to invest in unproductive practices such as the pyramids or cathedrals
World war I turning point for capitalism
The great depression brought an end to laissez-faire in the 1930’s
The growth of the English cloth industry during 16th, 17th, and 18th centuries
Capitalism was different from other previous systems: excess production over consumption enlargement of productive capacity rather than to invest in unproductive practices such as the pyramids or cathedrals
World war I turning point for capitalism
The great depression brought an end to laissez-faire in the 1930’s
Capitalist Countries
Capitalist Countries
Over 80% of countries in the world today use capitalism such as:
United States BritainUnited Kingdom Cuba Japan China
Over 80% of countries in the world today use capitalism such as:
United States BritainUnited Kingdom Cuba Japan China
Government Planning
Government Planning
There is no government planning in a pure capitalist nation
There is no government planning in a pure capitalist nation
Government Interference
Government Interference
The only government interference is in protecting citizens
Constitution and Bill of Rights protects individuals rights
Laws: legal system, criminals punished
Police officers enforce the laws Court systems prosecute the laws
The only government interference is in protecting citizens
Constitution and Bill of Rights protects individuals rights
Laws: legal system, criminals punished
Police officers enforce the laws Court systems prosecute the laws
Advantages
Advantages
Can own property or businesses Can produce wealth No government interference Law and order Bankruptcy protection Patents and copyrights Banking regulation and insurance Consumer holds power in the economy
Can own property or businesses Can produce wealth No government interference Law and order Bankruptcy protection Patents and copyrights Banking regulation and insurance Consumer holds power in the economy
Disadvantages
Disadvantages
Rich get richer, the poor get poorer
It’s not accepted in most societies
People in power limit diversity and competition (weakens the system as a whole)
The consumer holds power in the economy
Rich get richer, the poor get poorer
It’s not accepted in most societies
People in power limit diversity and competition (weakens the system as a whole)
The consumer holds power in the economy
Government Structure
Government Structure
Operates in a democracy Free enterprise system State and federal regulations to keep the market safe for the customers and consumers
Laissez faire government (“leave to do”)
Operates in a democracy Free enterprise system State and federal regulations to keep the market safe for the customers and consumers
Laissez faire government (“leave to do”)
Land Ownership
Land Ownership
Anyone can own property They can use their land for almost anything they want such as open a business or have a farm
They can also rent their house on their property
Anyone can own property They can use their land for almost anything they want such as open a business or have a farm
They can also rent their house on their property
Business OwnershipBusiness Ownership
Everyone has the right to start a business
People have the right to produce whatever they want
People also have the right to distribute their products
Everyone has the right to start a business
People have the right to produce whatever they want
People also have the right to distribute their products
CompetitionCompetition
Sellers want a profit, customers want quality goods
Competition: the rivalry among sellers for consumers money
Competition benefits society: improves quality of products development of new products lower prices Allows individuals to start businesses and make more competition
Sellers want a profit, customers want quality goods
Competition: the rivalry among sellers for consumers money
Competition benefits society: improves quality of products development of new products lower prices Allows individuals to start businesses and make more competition
Profits
Profits
Definition: The incentive and reward for producing goods and services
subtract costs from revenue Profits are usually over estimated sometimes there is a loss not a profit
Must produce goods and services that there is a demand for to make a profit
Definition: The incentive and reward for producing goods and services
subtract costs from revenue Profits are usually over estimated sometimes there is a loss not a profit
Must produce goods and services that there is a demand for to make a profit
Consumer ChoiceConsumer Choice
The right of the customer to be able to choose what products or goods they want and where they want to get them
Consumer choice is always possible in a capitalist country You can choose whether you want a cheese burger from MacDonald's or Burger King
You can choose if you want Nike sneakers or Addidas
You can choose if you want a notebook from Staples or CVS
The right of the customer to be able to choose what products or goods they want and where they want to get them
Consumer choice is always possible in a capitalist country You can choose whether you want a cheese burger from MacDonald's or Burger King
You can choose if you want Nike sneakers or Addidas
You can choose if you want a notebook from Staples or CVS
Labor UnionsLabor
Unions Labor unions were formed because of bad working conditions such as:
low wages Long hours Unsafe working conditions
Labor unions are allowed in capitalist nations and some jobs even require you to join the unions
Labor unions were formed because of bad working conditions such as:
low wages Long hours Unsafe working conditions
Labor unions are allowed in capitalist nations and some jobs even require you to join the unions
Taxation
Taxation
Taxes provide revenue for the country’s government
The country then uses this money to serve its people
Taxation makes it hard for people to get rich
Taxes provide revenue for the country’s government
The country then uses this money to serve its people
Taxation makes it hard for people to get rich
Careers and EmploymentCareers and Employment
Many jobs are possible in a capitalist society
You could work in a factory or even own the factory
There are many jobs in politics too such as governor, senate, or even president
Many jobs are possible in a capitalist society
You could work in a factory or even own the factory
There are many jobs in politics too such as governor, senate, or even president
Works CitedWorks CitedLeone, Bruno. Capitalism. 2. St. Paul, Minnesota:
Greenhaven Press, 1986.
Ceanothus, Bayeu. “Capitalism.” Encyclopedia Britannica. 15.1998.
Amy, Douglas J.. "Capitalism Requires Government." Capitalism Requires Government. 2007. Politics at Mount Holyoke College. 16 Mar 2009 <http://www.governmentisgood.com/articles.php?aid=13&p=1>.
"What is Capitalism?." World Socialist Movement. 13-8-2006. World Socialist Movement. 16 Mar 2009 <http://www.worldsocialism.org/articles/what_is_capitalism.php>.
Everard, Kenneth E., and James L. Burrow. Business Principles and Management. 10th ed. cincinnati, Ohio: South Western Educational Publishing, 1996.
Leone, Bruno. Capitalism. 2. St. Paul, Minnesota: Greenhaven Press, 1986.
Ceanothus, Bayeu. “Capitalism.” Encyclopedia Britannica. 15.1998.
Amy, Douglas J.. "Capitalism Requires Government." Capitalism Requires Government. 2007. Politics at Mount Holyoke College. 16 Mar 2009 <http://www.governmentisgood.com/articles.php?aid=13&p=1>.
"What is Capitalism?." World Socialist Movement. 13-8-2006. World Socialist Movement. 16 Mar 2009 <http://www.worldsocialism.org/articles/what_is_capitalism.php>.
Everard, Kenneth E., and James L. Burrow. Business Principles and Management. 10th ed. cincinnati, Ohio: South Western Educational Publishing, 1996.