Socialism Capitalism

Capitalism (IR)

Emerged from 19th century
Private individual invest money into companies → owners

Labour, raw materials + finished products = exchange on free market

Support the right of individual to create enterpise free from gov

Market = determined what produce + price → inequality.

Middle class

Economic growth → middle class
From the rapid expansion of market(literal increase of employment opp and variety)

Jobs = manager, secretaries and accountant
Higher wages → more money to spend on non-essential goods (recreational and educational. Improve STD of living

Socialism

Direct response from IR → social change, economic shifts

Industrialists = rich, worker = live in poverty → socialism as alt to capitalism. Hope to improve STD of living for working class

Socialism part 2

Living and factory conditions → demand for social improvements

Gov = determine what produced, by who + what price
Gov would provide all that person needs, therefore people = treated equally

Socialism = community not individual own property + resources
Unrestricted market economy + puplic ownership of production = better distribution wealth, equal society