Capitalism vs. Command Economy

A) Capitalism

1) capitalism- economic system in which production and the means to produce are owned and controlled by private owners and groups.

A) Capitalism

1) capitalism- economic system in which production and the means to produce are owned and controlled by private owners and groups. a. government plays a limited role

A) Capitalism

1) capitalism- economic system in which production and the means to produce are owned and controlled by private owners and groups. a. government plays a limited role b. market determines how resources are

distributed

B) Command Economy

1) command economy- an economic system in which decisions on the basic economic questions are made by the gov’t

II) Reasons for a Command Economy (Chinese Gov’t)

II) Reasons for a Command Economy (Chinese Gov’t) A) In a capitalistic economy, people will

make things that make them the richest and not be able to meet all of the needs of the people

II) Reasons for a Command Economy (Chinese Gov’t) A) In a capitalistic economy, people will

make things that make them the richest and not be able to meet all of the needs of the people 1. Make goods for the rich, and not for the poor

II) Reasons for a Command Economy (Chinese Gov’t) B) Government should control production

and allocation of resources

II) Reasons for a Command Economy (Chinese Gov’t) B) Government should control production

and allocation of resources 1. This would be more efficient, lead to less

waste and little or no unemployment

II) Reasons for a Command Economy (Chinese Gov’t) C) In capitalism, you generally have very

wealthy and very poor

II) Reasons for a Command Economy (Chinese Gov’t) C) In capitalism, you generally have very

wealthy and very poor 1. Because command is not concerned with

profit, resources are distributed equally and there is a more level economic standing