First Semester

First Semester - Business 8/28 8/29 Professor Bilawsky Economics Economic Systems Capitalism Free Enterprise Laissez Faire Government doesn't

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Business 8/28, 8/29 Professor Bilawsky Economics     Economic Systems: Capitalism:  Free Enterprise, Laissez Faire. Government doesn’t regulate or  restrict. No Taxes. -Adam Smith Established Capitalism. Wrote “The Wealth of Nations” Entrepreneurs-  Warren Buffett- Berkshire Hathaway, Genius Investor, Simple -Prices determined by supply and demand. Equilibrium is spot where supply and  demand meet= price - Competition Communism:  Karl Marx- Father of Communism, Wrote “The Communist  Manifest” along with Freiderich Engels. Marx Produced theories and engels wrote. Theoretical Commnism “Rule by the pro-literiat” (Working Class) - No Leader, or Central Government -“No one owns anything, but everyone owns everything” Everyone owns  property, not any single person -“From each according to his ability, to each according to his needs” -Your Job doesn’t matter, only what you need matters - You get what you need, and only when you need it, and only for the period of  time you need it. -EQUALITY. -Todays Dictators are not what Marx described in his communism theory. Ex:      
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-Cuba (Fidel Castro) -Soviet Unions set goals were never reached, economic failure destroyed the  S.U. -China; now an economic powerhouse, followed marx’s theory, until the Soviet  Union Collapsed when they realized they had to change from S.U’s economic ways and  is now much more of an open economy. -In real world communist state- all economy is controlled by communism: price,  tax, etc… Socialism:  Most popular economic form. More then any economic form, A Vast majority  are. EX. Israel, Britian - “Cradle to the Grave System”- Government assists citizens with almost everything  financially, Medically (National health care system), Schools, Colleges, Funeral  Services - Large businesses are either owned or controlled by the government. - Mid-size to small businesses owned privately - People do not have motivation- Government is a crutch - Taxes are phenomenally high - VAT value added tax (national sales tax) between 16-25% Fascism:  Everything owned privately. - right to inheritance - absolute control over business and the economy - Can tell you what to produce, how much, and the price Modified Capitalism-  system that we have in the united states - “Modified” by socialism ex: social security, Medicaid, medicare, unemployment
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Sherman Anti-trust act: Broke up “Standard Oil” headed by John  Rockefeller Made Monopolies illegal acts in restraint of trade  Monopoly- one producer and many purchasers
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This note was uploaded on 04/29/2008 for the course BUS ?? taught by Professor Bilawsky during the Fall '08 term at SUNY Suffolk.

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First Semester - Business 8/28 8/29 Professor Bilawsky Economics Economic Systems Capitalism Free Enterprise Laissez Faire Government doesn't

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