Communism vs. Capitalism

Types of Economies

• Command Economy: Economic system where production of goods and services is controlled by the government.

• Market Economy: Economic system where goods and services is determined by the demand from consumers.

• WARM-UP: Write down on your paper what you think these words mean:

–Communism

–Democracy

–Capitalism

Cold War Terms

• Communism:

• Democracy:

• Capitalism:

a political system which the government controls production of all food and goods. No privately owned property

government by the people

an economic and political system in which businesses belong mostly to private owners, not to the government

Capitalism v. Communism

• Which is an example of a COMMAND ECONOMY?

• Which is an example of a MARKET ECONOMY?Use your key terms to help you!

Capitalism v. Communism

• Which is an example of a COMMAND ECONOMY?

–Communism• Which is an example of a MARKET

ECONOMY?

–Capitalism and Democracy

Fall of Communism• Communism spread by USSR after WWII

• Created satellite nations in Eastern Europe

• Led to COLD WAR

• Shortages (not enough) of goods

• Lack of technology development

• Difficulty selling goods to most of the world

• These led to the fall of communism in the Soviet Union

• Examine the handout “The Two sides of the Cold War”

• Create a Double-Bubble Thinking Map