Captitalism vs Communism What is Communism Communism a

Captitalism vs. Communism

What is Communism? Communism - a government where people shared work fairly and were paid equally. n The word “Communism” comes from the Latin word “Communis” which means common or belonging to all. n

The Beliefs of Communism The rich get richer. n The poor get poorer. n People wanted to make everything equal. n

The Goal of Communism n Goal: to get rid of social classes and make everything fair for everyone.

Do you agree? Or disagree? n Based off of what n If yes: explain you know, do you why think Communism n If no: what are is a good idea? potential dangers of Communism?

Capitalism n An economic and political system in which a country's trade and industry are controlled by private owners for profit.

Basics of Capitalism: Capitalism is said to promote economic growth and the overall standard of living. n In other words, capitalism creates CAPITAL (money) …and lots of it. n

Basics of Capitalism: Buyers (people) influence the market through their demand ability to purchase goods and services. There is very little government intervention. n Producers (businesses) are motivated by profit (money) and therefore create whatever goods people will buy. n In other words, the businesses run the economy, the government stays out of it! n

Do you agree? Or disagree? n Based off of what n If yes: explain you know, do you why think Capitalism is n If no: what are a good idea? potential dangers of Capitalism?

Problems with Communism: n Lack of individuality n Lack of choice n Equal treatment for all, even if you work harder than all the rest

Problems with Capitalism: n There is a growing gap between the rich and the poor. The rich get richer and the people who work for them remain poor.

So what is the best solution? n Do you believe that Communism or Capitalism is a better economic system? n Be sure to you specific reasons to support your answer.

Cold War Terms and Definitions United States n Capitalism: – Private ownership of industry – Freedom of competition – Survival of the fittest – Laissez-faire: government keeps “hands off” – Creates different economic classes Soviet Union n Socialism: – Government ownership of industry – Created as reaction to capitalism – Goal is to bring economic equality to people – Classless society

United States n Democracy: – Government by the people – Two forms: • Representative • direct Soviet Union n Communism: – Government by one or a few – Total control over many aspects of people’s lives – No freedom of press or speech

United States n Freedom – The condition of being free – Highly valued: • Freedom of press • Freedom of speech • Freedom to do business Soviet Union n Equality: – Condition of being equal – Highly valued: • Basic needs: food, housing, education, and jobs (supplied for all people)

United States n Individualism: – Stresses the need for people to do things on their own – Competition; the best individuals reach higher levels of power, status, or money Soviet Union n Collectivism – Stresses the need for people to work together to benefit the whole – “all for one, and one for all”