Objective:

Students will review the basic ideas of Communism, Socialism

and the Market Economy as these ideas are found in world economic

systems.

Socialism and Communism

When Government enters an economy it may be regulation or it may be something very different

Communism

• A system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.

Communist countries often lose consumer choice when the

government controls the economy?

• http://www.youtube.com/watch?v=5CaMUfxVJVQ• Wendy’s, an American “free market” business, finds

communism lacking choices:

Socialism brings less government control…

• “An ideology arguing that citizens are best served by policies focused on meeting the basic needs of the entire society rather than on serving the needs of individuals as individuals.”

These systems can be shown on a “Spectrum”- it’s a matter of degree

So, where did this all start?

• In 1917, the Russian Bolsheviks under Lenin led a revolution to take over Russia in the name of the Workers. They formed the Union of Soviet Socialist Republics- the U.S.S.R.

The U.S.S.R. had an economy controlled by the Communist Party

What to Produce- What the government ordered.

How to Produce- Using the methods approved by the government

For whom to Produce- Shared by all, but the party members got more.

Their inspiration was a political theorist named Karl Marx who predicted that the Capitalist free market

system could not survive because of inequities.

After the of the Soviet Union, other countries began to become communist

Watch a short piece of historyThis tape was made in 1988.

The announcer is an ABC News reporter named John Stossel.

He visits the U.S.S.R to see what, how and for whom it produces.

(Switch to Stossel Tape)

There are five remaining communist countries today

• Cuba: Cuba is one of the most Socialist nations, as it has a mostly state-run economy, universal healthcare, government-paid education at all levels, and a number of of social programs. It does not have a stock exchange.

• North Korea: The same is true of North Korea, which has an almost entirely state-run economy, as well as the same social programs mentioned for Cuba. Like Cuba, North Korea does not have a stock exchange.

• Venezuela: Economy has more private ownership, but the government social programs are quite extensive and the foreign policy is very left-wing. Cuban doctors and teachers have been brought to Venezuela to provide some medical and educational services. Not always deemed “Communist”.

• China: A substantial part of the economy is still state-run, although there are not as many social programs as there once were and universal healthcare has been eliminated. Still has a Socialist-type foreign policy, for the most part.

• Vietnam: A significant part of the economy is state-run. Close ties with Cuba, Venezuela, and Belarus.

Other countries may be called “Socialist” because of government in the economy

•Syria: Although not commonly referred to as Socialist in the West, Syria has a mostly state-run economy and universal healthcare, along with a left-wing foreign policy.

•Belarus: Much of the Belarussian economy is state-run and some govt. social programs are available. Belarus has close ties with Venezuela, China, and other Socialist countries.

•Sweden: Mostly private industry, but many well-funded govt. social programs are offered. Universal healthcare and government-provided education at all levels is made available.

•Laos: A large part of the economy is state-run, and the government has close ties with most other Socialist countries.

•Zambia: Some elements of the economy are state-run, including most of the media. Universal healthcare and primary education are available. Zambia has a left-wing foreign policy and is friendly with China and North Korea.

•Turkmenistan: Mostly state-run economy, various free and subsidized services are provided by the government. Housing and transportation are subsidized, natural gas and electricity are provided to citizens free of charge. •Other countries which might be considered Socialist, depending upon the interpretation of different factors, include Norway, Libya, Algeria, and Namibia.

The most Communist country remaining is North Korea

North Korea is run as a dictatorship under Kim Jung il

Kim Jung iI inherited power from his father Kim il Sung. Kim decided to produce a strong

military and not much else.

Venezuela is a country moving towards socialism or communism

Hugo Chavez

The Free Market is not run by the government

A “Utopian” free market has no government. It is Laissez Faire-

the government leaves the economy alone.

There are no utopian free markets in the world.

In theory, the Free Market runs itself

The late Dr.Milton Friedman was the leading free market economist

Watch his famous explanation of how it works—

http://www.youtube.com/watch?v=R5Gppi-O3a8

When government enters the market, it is usually to correct a “market failure”.

If government enters the market enough, the result can be

Socialism. There is no definite line to tell when a Mixed Market becomes Mixed Command

(Socialist)

The U.S. is currently in a debate over government health care.

Using your cell phone (strictly voluntary) send a text to that option in

the next slide that you agree with.

Let’s see what you think on an issue or two

The U.S. is a “Mixed Market”, but changes are being made in our

“system”…

Now-Using the research you did in the computer lab the last 2 days

As I call on you, share with us what countries you compared and what you learned about

the economies of the countries you researched.

…and just to repeatObjective:

Students will review the basic ideas of Communism, Socialism

and the Market Economy as these ideas are found in world economic

systems.

Let’s try a little quiz

Number 1-5 in your notebook.

Please do not answer aloud!

Often the Scandinavian countries are seen as a socialist model

• Some would like the U.S. to be more like Sweden.

• Here is a short video (note bias?)

• http://www.youtube.com/watch?v=HbTEzhaXZ3w&feature=related

1. What was the first country to put in a communist economy?

• A) China

• B) Russia

• C) Cuba

• D) North Korea

2. What is the most Communist country in the world today?

• A) China

• B) Russia

• C) Cuba

• D) North Korea

3. Which item would have been easily available in the U.S.S.R.?• A) Vodka

• B) Medical Care

• C) Chicken

• D) New Balance Shoes

4. Laissez Faire in the market economy refers to…

• A) pencils with erasers.

• B) the role of the consumer.

• C) the role of government.

• D) fair trades made in the market.

5. Who decides how pencils are to be made in the market system?

• A) the government

• B) a pencil czar.

• C) the pencil companies.

• D) no one person.