ECONOMIC SYSTEMCapitalism Socialism

PresentingPresenting

∗ Definiti0n 0f CapitalismDefiniti0n 0f Capitalism∗ Definiti0n 0f S0cialismDefiniti0n 0f S0cialism∗ Features 0f CapitalismFeatures 0f Capitalism∗ Features 0f S0cialismFeatures 0f S0cialism∗ Merits and Demerits 0f CapitalismMerits and Demerits 0f Capitalism∗ Merits and Demerits 0f S0cialismMerits and Demerits 0f S0cialism

IndexIndex

Economic system under which all firms, factories and other Economic system under which all firms, factories and other means of production are the property of Private individual and means of production are the property of Private individual and firmsfirms

Beginning of capitalism was 16Beginning of capitalism was 16 thth century during commerce century during commerce revolution but it was fully introduced in 18revolution but it was fully introduced in 18 thth century during the century during the industrial revolutionindustrial revolution

WHAT IS CAPITALISM

Adam Smith is generally credited to be the founder of modern Adam Smith is generally credited to be the founder of modern economics and one of the first philosophers to advocate free economics and one of the first philosophers to advocate free market capitalism (but it should be noted that Adam Smith did market capitalism (but it should be noted that Adam Smith did not use the term "capitalism")not use the term "capitalism")

THIS IS THE OLDETHIS IS THE OLDEST ECONOMIC SYSTEM IN THE WORLD.ST ECONOMIC SYSTEM IN THE WORLD.

COUNTIRES LIKE COUNTIRES LIKE BRITAIN, FRANCE, AMERICA AND GERMANYBRITAIN, FRANCE, AMERICA AND GERMANY ETC. have such system.ETC. have such system.

Capitalism was the predominant economic system till 1917Capitalism was the predominant economic system till 1917

WHAT IS CAPITALISM

Socialism

An economic system in which the production and An economic system in which the production and distribution of goods controlled by the government.distribution of goods controlled by the government.

Government decides what to produce, when to Government decides what to produce, when to produce, how to produce and for whom to produce.produce, how to produce and for whom to produce. The philosophy of socialism for the first time was The philosophy of socialism for the first time was introduced by Plato in his book(Republic)introduced by Plato in his book(Republic)

WHAT IS SOCIALISM

∗In 1915 Thomas worked for socialismIn 1915 Thomas worked for socialism∗In late 17 simom and Robert owon worked in In late 17 simom and Robert owon worked in this field, Simon wrote a book in 1892 named this field, Simon wrote a book in 1892 named of memories of memories ∗In 1917 USSR and in 1949 China socialist In 1917 USSR and in 1949 China socialist economic system formed like a bloody economic system formed like a bloody revelation Hungry, Cuba, North Korea, revelation Hungry, Cuba, North Korea, RomaniaRomania

WHAT IS SOCIALISM

∗ Private Property:Private Property:∗ Price Mechanism:Price Mechanism:∗ Role of the State:Role of the State:∗ Freedom of Enterprise:Freedom of Enterprise:

∗ Competition:Competition:

∗ Consumers’ Sovereignty:Consumers’ Sovereignty:

FEATURES OF CAPITALISMFEATURES OF CAPITALISM

∗ INCREASE IN PRODUCTIONINCREASE IN PRODUCTION

∗ HIGH STANDARD OF LIVINGHIGH STANDARD OF LIVING

∗ TECHNOLOGICAL PROGRESSTECHNOLOGICAL PROGRESS

∗ FLEXIBILITYFLEXIBILITY

∗ LIBERTYLIBERTY

ADVANTAGEs OF CAPITALISMADVANTAGEs OF CAPITALISM

∗ REGIONAL INEQUALITIESREGIONAL INEQUALITIES

∗ NO WELFARE OF THE SOCIETYNO WELFARE OF THE SOCIETY

∗ UNEMPLOYMENTUNEMPLOYMENT

∗ MONOPLIESMONOPLIES

DISADVANTAGEs OF CAPITALISMDISADVANTAGEs OF CAPITALISM

GOVT. OWNERSHIPGOVT. OWNERSHIP CENTRAL PLANNINGCENTRAL PLANNING SOCIAL WELFARESOCIAL WELFARE LACK OF COMPETITIONLACK OF COMPETITION EQUALITY OF OPPORTUNITY EQUALITY OF OPPORTUNITY REDUCTION IN CLASS DISTINCTIONREDUCTION IN CLASS DISTINCTION

FEATURES OF SOCIALISMFEATURES OF SOCIALISM

GREATER ECONOMIC EFFICIENCYGREATER ECONOMIC EFFICIENCY A PLANNED ECONOMYA PLANNED ECONOMY RAPID ECONOMIC GROWTHRAPID ECONOMIC GROWTH GREATER FREEDOMGREATER FREEDOM RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT

MERITs OF SOCIALISMMERITs OF SOCIALISM

UNREAL WORKUNREAL WORK LOSS OF EFFICIENCYLOSS OF EFFICIENCY LOSES OF FREEDOMLOSES OF FREEDOM MISALLOCATION OF RESOURCESMISALLOCATION OF RESOURCES

DEMERITs OF SOCIALISMDEMERITs OF SOCIALISM

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