Political Systems and Ideologies: Democracy, Capitalism, Communism, and Fascism

Democracy

A political system characterized by a freely elected government that represents the majority of its citizens

Political orientation

The placement of specific ideas within a spectrum of political views ranging from extreme far-right thinking (fascism) to moderate views (capitalism and socialism) before extending to far-left thinking (communism)

Capitalism

An economy characterized by private ownership of business and industry, the profit motive, and free markets

Communism

A political system on the extreme left, founded on the theory of Karl Marx, that calls for government or community ownership of the means of production

Socialism

A political system of the moderate left that calls for public ownership of the principal means of production, to be achieved in a democratic and peaceful manner

Nationalization

Another term for state ownership of business enterprise.

Fascism

A political system on the extreme right, combining a free-market economy with a non-democratic form of government

Propaganda

Concerted messaging efforts used to influence thoughts and opinions by repeated emphasis, distortion, deception and misinformation

Public debt

The total debt held by federal and provincial governments accumulated from their past borrowings on which interests must be paid

Economic growth

An increase in an economy's total production of goods and services

Transfer payments

Direct payments from governments to other governments or to individuals, a mechanism for providing social security, income support and alleviation of regional disparities

Inflation

A general rise in the price levels of an economy

Deflation

A general fall in the price levels of an economy

Balance of payments accounts

National account of international payments and receipts divided into current account and capital and financial account

Consumer sovereignty

A principle of market economies that the production choices of the economy are ultimately made by the buying decisions of consumers

Dictatorship

A political system in which a single person exercises absolute authority over an entire country

Capitalism

When German philosopher Karl Marx called the free-enterprise system with democratic government capitalism, he meant to criticize its tendency to stress the accumulation of capital resources as a means to greater individual wealth and power.

Capitalism Features

freely elected government to maintain public order and to keep competition free and fair

The private ownership of industry and businesses

free-market conditions

Production drive by profit motives

profit and loss act as the main forces directing what gets produced and how resources are used

Adam Smith

1723-1790, called the father of capitalism

Described capitalism as a natural order based on natural laws of economics

Capitalism On the Political Spectrum

occupies the moderate right position

Democratically elected governments can range from

a moderate-right orientation (where free-enterprise is prioritized) to a moderate-left orientation (where social welfare is prioritized)

Capitalist systems today

Hong Kong, Singapore, the United States, and New Zealand

Mixed Capitalist systems today

Canada, Germany, France, Great Britain, and Italy have primarily capitalist systems blended with welfare programs and government owned enterprises

"welfare capitalism."

History of communism

Based on the theory of Karl Marx, Grew out of the need for exploited working classes to rise up against their capitalist owners

Communism Features

Government or community ownership of all means of production and wealth, private property and free enterprise are abolished

Core Principle of Communism

Individuals produce according to their ability and consume according to their need

Communism Political Structure

Requires an uncontested government with complete authority to plan for maximum economic growth, Opposition is often illegal in order to safeguard the common good

Economic System for Communism

Government creates detailed economic plans, produced equally for all

Focus on producing capital goods over consumer goods

maximum future economic growth, even if citizens must make personal sacrifices.

Communist systems today

China, Cuba, North Korea, and Vietnam.

FASCISM Features: 

occupies the extreme-right position on the political spectrum, combines a free-market economy with a non-democratic form of government, Force used for political and social control

do not usually tolerate political opposition, Citizens are free to own property and businesses as long as they comply with all government dictates, Clear restrictions on individual freedom.

Capitalists support fascism because:

If very careful to fulfill the wishes and production demands of the government, they protect their privileged role in society

Fascist leaders rely on business leaders to:

promote economic growth and productivity, Increase industrial production, Strengthen the military, Promote economic growth that supports national power

To maintain control fascist states use:

Propaganda to promote the greatness of the uncontested ruler and the fascist state , Suppression of opposition, such as limiting free speech, censoring media, or unfair elections

Capitalist systems to fascist states by:

rigged elections where the ruling class always wins, suppressing the voices and rights of the opposition

Basic Idea of socialism

based on public ownership or control of the main means of production

The goal is a fair and equal distribution of goods

democratic decision-making process

occupy the moderate-left position on the political spectrum.

Difference from Communism

Socialists do not use force or revolution to achieve their goals, Favour democratic and peaceful methods, Do not ban opposition parties

Socialist Critique of Capitalism

argue that free enterprise is inefficient and wasteful. causes conflict between workers and owners and leads to worker exploitation. Socialists emphasize co-operation and worker solidarity instead of the capitalist focus on self-interest and competition allowing resources and benefits to be shared more equally