○ Extreme right - Capitalism
■ All resources are in private ownership by individuals ■ Everything is in private hands by a few ● There are many opportunities, but over time it will be very concentrated to very few hands like Walmart (Sam Walton, he did so well that he consolidated wealth and put other businesses out of the industry) ■ Government does nothing ■ Supply and demand will provide things to people as they need ■ Pure Capitalism does not exist ■ Problems: ● Too much consolidation of wealth in few hands ● Becomes stagnant ● Limit opportunities ● Easily corrupted ● Society Too lopsided ● Too much wealth disparity ● Unstable society→ how revolution occurs ○ Socialism ■ A system where government owns some production and resources and the rest is privately owned ■ Most states are socialist mixed systems ■ Government still regulate and control private sectors ■ If a state owns nothing and regulate very little and benefit very little → capitalist economy ■ Vice versa (socialist or communist) ● Communism and Socialism are in response to capitalism in industrial revolution in western europe (concentration of wealth in few hands) ● China has been blooming since going capitalism 2.2 Nationalization vs Privatization ● The state has to have money to run the government ● Taxes ● Control resources / businesses ■ When business makes money, government make money ■ Something they have to nationalize or privatize ● All government does something, otherwise, what is it for? ● Nationaliation ● When a state takes over resources or industry from private sector and make it state property ■ President of Venezuela Hugo Chavez ■ Private company makes profit on oil from the country ■ The state bought the oil company ■ If the oil company doesn’t comply, the state government just take control ● The US hates nationalization ■ Rich countries complain because Exxon is American company ● LEFT ■ Yess ■ It’s property of all the state
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- Fall '13