capitalism socialism communism

the right to privately own, buy, sell, or produce goods and services; business is not under state/government control- Free Choice!

Capitalism or Free Enterprise

the American system of economy

mixed economy

what economic system has done the most to lift people out of poverty?

capitalism

fundamental factors of free enterprise

private ownership, individual initiative, profit, competition

private individuals and companies own most of the factors of production and decide how this productive property will be used

private ownership

all individuals are free to start and run their own businesses and to dissolve those businesses

individual initiative

individuals are entitled to benefit from whatever their investment or enterprise earns or gains in value

profit

a situation in which several companies offer the same product or service and must compete against one another for customers

competition

English document that served as a model for America's rights regarding property protections

Magna Carta

talks about natural rights of life, liberty, and property; government is to preserve the people's property

John Locke

says that a King cannot randomly seize a subject's property; the courts and law have power over the "lands or goods"

William Blackstone

refers to property as physical property

Samuel Adams

refers to property as physical property and anything people value

James Madison

in capitalism, what protects against corruption?

rule of law

defined as "following the rules and procedures in place to ensure justice"

due process of law

defined as "to receive with or without consent"

taken

defined as "in the action or service of everyone"

public use

defined as "a fair amount to be paid back"

just compensation

the power to take private property for public use by a state, municipality, private person, or corporation authorized to exercise functions of public character, following the payment or just compensation to the owner of the property

eminent domain

which amendment mentions "due process of law"?

fifth

used eminent domain for public benefit, not public use

Kelo vs New London

if supply increases and demand stays the same, prices will

fall

if demand decreases and supply stays the same, prices will

fall

if demand increases and supply stays the same, prices will

rise

a market structure with a single seller or producer that assumes a dominant position in an industry or a sector; discouraged in free-market economies because they stifle competition

monopoly

an individual who creates a new business, bearing most of the risk and enjoying most of the rewards

entrepreneur

father of capitalism; wrote Wealth of Nations

Adam Smith

Smith's theory that government should be limited and keep its "hands-off" the market (free market)

laissez-faire

believed an "invisible hand" guided economics (individuals acting in their own self-interests can also benefit the society as a whole)

Adam Smith

father of modern socialism and communism; author of the Communist Manifesto

Karl Marx

key idea of Communist Manifesto

redistribute wealth so there is economic equality

the working class (oppressed)

Proletariat

capitalists (oppressors)

bourgeoise

an economy that has private and government involvement

mixed economy

the value of a commodity (product or good) is determined by the amount of labor put into it

labor theory of value

capitalists maintained their power and privileges through the state and government, as well as through religion (opium of the people)

role of the institution

after revolution, there must temporarily be a dictator, but it will wither on the vine

dictatorship of the proletariat

merging small farms into government owned farms

collectivization

government takes control of industry and businesses

nationalization

public welfare: providing for the equal distribution of healthcare, housing, and education; high taxes; peacefully and democratically come to power

socialism

government bureaucrats determine production, prices, economic goals, etc

command economy or central planning

the party controls both the government and the economy; government ownership of means of production

communism

private ownership of the means of production

capitalism

decisions by consumers and businesses determine economic activity

capitalism

public and private ownership of means of production

socialism

decisions by consumers and businesses and by government determine economic activity

socialism

public (government) ownership of means of production

communism

decisions by government determine economic activity

communism

founded the Soviet Union (Russian Communist state)

Lenin

built a totalitarian dictatorship with centralized planning. twenty million or more died to fulfill his communist dream

Stalin

built a totalitarian dictatorship with centralized planning using the "Great Leap Forward". millions died. then he had a cultural revolution to root out all non-communists. greatest mass murderer in history

Mao Zedong

moved China towards capitalism (massive economic growth)

Deng Xiaoping

returns China to communism and the economy slows down

Xi Jinping