2.1 The Systems ● Conservative Right ○ Economic power in the hands of the people that have it ○ People work hard by themselves ○ People should be allowed to keep the money they make ○ People should rely on community/ family if they can’t work ○ Keep the government out of the economy and businesses ■ Wealth is concentrated in fewer and fewer hands ○ Economy is screwed when government is regulated ○ Wealth accumulation is not bad because it is deserved to the people that earn it ■ Government should not be involved in economic activity ■ Gov’t should minimize taxation and regulation ■ Gov’t should provide a minimum of social benefits ● Liberal Left ○ Economic power for everyone to share (equitable) ○ Redistributed via service/ welfare ○ People that can’t go out to work should be economically equal to everyone ○ People have to chip in ■ Every business success is due to the community in which it operates ○ Government should be involved in regulating/ controlling the way a business works to benefit the society ■ Government should be involved in economic activities ■ Gov’t should regulate the economy ■ Gov’t should distribute wealth via social benefits ● Communism ○ Everyone owns everything (services, business, land, resources) ○ State government provides what we need based on need ■ manages this economic activity (gov’t only function) ● Capitalism ○ Everything is in private hands ○ State government does nothing ○ Ownership by the few, over time wealth becomes concentrated into fewer hands ■ Walmart and Sam Walton takes over businesses so they are the only ones left ● Pure capitalism and communism exists nowhere ● What’s wrong with communism? ○ It’s too complicated ■ Government can’t decide where/what everything should do ○ Too easily corrupted ■ People are greedy ○ Becomes extremely stagnant ■ People don’t work hard ● What’s wrong with capitalism? ○ Too much consolidation of wealth in too few hands ○ Opportunities limited ■ People don’t have the means to do certain work ○ Easily corrupted ■ People will do whatever it takes for the extra $ ○ Society way too lopsided ■ Too much wealth disparity
● Socialism ○ Most economic systems are socialist ○ Accounts for some needs (military, education, education) ○ Government has laws to regulate some things ● Industrial Revolution caused economic systems to evolve ○ Inspired Marxism and communism 2.2 Nationalization vs. Privatization ● Governments raise money through: ○ Taxes ○ Control resources/businesses ● Nationalization ○
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- Fall '08
- Economics, economic growth rate, social benefits, Economic Sector