Ideology II: World Economies

1
Ideology II World Economies

• An economy is a system by which a nation produces
  and distributes goods and services.
• Must answer The Three Questions
• What shall we produce?
• How shall we produce it?
• Who will receive what we produce?

2
Capitalism

• The Three Questions are answered by consumers
  (a.k.a. the market)
• Heres the process
• A product or service is wanted (demand)
• An entrepreneur produces it for the market
• The entrepreneur hopes to make a profit
• Capitalist Person who invests in companies
  (stockholder) who also wants to make a profit.

3
Competition The Regulator of Capitalism

• Competition is supposed to regulate price and
  quality of goods and services
• If an entrepreneur is selling something that is
  shoddy or too expensive then someone else will
  produce a better product at a cheaper price.
• Market Share The percentage of the market that a
  producer serves.

4
Pure Capitalism

• Role of Government
• since The Three Questions are answered by the
  market the government is supposed to stay out of
  it
• Military?, Police?, Fire?, Schools?, Roads?
• Only private ownership of property
• No public (government-owned) property
• A.K.A.-Free Enterprise and Free Market

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Problems With Capitalism

• Little or no competition
• Monopolies One company controls an entire
  market (cornering the market)
• Consumers can accept their price and quality or
  go without
• No Entrepreneurs for a particular good or service
  if the market is very small
• Certain drugs
• Very expensive things
• Outdated goods or services (typewriters)

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Problems With Capitalism

• No government regulation (minimum wage, working
  conditions, etc)
• Environmental Issues (ex. pollution, logging,
  endangered species)
• No safety net for the poor
• A small, very wealthy upper class and a very
  large, very poor lower class

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Life in a Purely Capitalist Economy

• School?
• Stufflebeam Academy Very expensive but an
  outstanding education
• Who gets to go to school?
• Police?
• Military?
• Obviously, a purely capitalist economy is not
  possible

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Communism

• Government answers The Three Questions (planned
  economy)
• Everyone works for and is paid by the government
• Only Public Property
• Equal Distribution of Wealth
• No Social Classes or Poverty?
• No Crime?

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Life in a Communist Nation

• Your Jeans
• Your Housing
• Long lines due to scarcity of goods and services
• Little choice of goods and services
• Communist Countries Vietnam, North Korea,
  China, Cuba

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Problems With Communism

• Who gets what? Not everyone needs the same
  things.
• You cant get ahead. There is no incentive to
  work hard. Are you ready to do your best for the
  benefit of everyone else?
• Ex. Huge State Farms Alcoholism, Absenteeism,
  Suicide
• Tends to be dictatorial (youll learn why later)

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More on Communism

• Karl Marx
• Das Kapital
• The Communist Manifesto
• Miscellaneous Marx
• Proletariat-Working Class
• Communist Revolution
• Marx Organized religion is a lie meant to keep
  the proletariat obedient.

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Socialism/Mixed Economy

• The government answers some of The Three
  Questions and the market answers some
• Heavy Regulation of Business
• Income Redistribution
• Tax the Rich
• Welfare Programs
• High Minimum Wage

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Socialism/Mixed Economy

• U.S. Socialism
• Police, public ed., fire, etc
• Minimum wage, labor laws, social security,
  medicare/medicaid, regulations on business
• Post Office, Amtrak, Utilities, Taxes, Area 51
• Socialized Health Care?

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Fascism An Ideology but not an Economy

• Extremely Right-Wing Ideology
• Racism
• Militarism
• Extreme Nationalism

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Comparing Economic Ideology and Political
Ideology
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Are All People Equal?

• Capitalism No. Its a dog-eat-dog world
• Communism Yes. Everybody gets the same stuff
• Socialism Not quite equal but not too far away
  from each other in regard to material wealth
• Facism No. Kill the inferior races. (Genocide
  or ethnic cleansing)

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Should Government Be Big?

• Capitalism No. Government should only exist to
  protect the nation and its citizens
• Communism Yes. Government should own and
  control all property and equally distribute goods
  and services.
• Socialism Sort of. Heavy taxes, social
  programs, government regulation of the economy.

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Is Change Good?

• Capitalism No. The market will decide what
  change, if any, takes place. Government will not
  institute social change.
• Communism Yes. A revolution must overthrow the
  capitalists
• Socialism Slow but steady change

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The Two Cow Analogy

• If you have two cows in a capitalist country you
  sell the milk for a profit and buy more cows.
• If you have two cows in a communist country the
  government takes them and equally distributes the
  milk.
• If you have two cows in a socialist country the
  government takes one cow and gives it to someone
  who doesnt have any cows.
• If you have two cows in a fascist country the
  government doesnt care but will kill or imprison
  you if you are a racial minority.