Capitalism • People have their own businesses and lands and own them and the production methods. • Progress occurs when individuals follow their own interest. • Companies follow their own interest by competing for consumers' money. Every business tries to produce better and less expensive goods or services than those of the competition. • Consumers compete to buy the best products at the lowest prices. This competition shapes the market by affecting what businesses can sell. • The government must not interfere in the economy because competition creates efficiency in business.
Socialism The community or the state must own the property and the means of production. Progress occurs when a community cooperates for the good of all. Socialists believe that capitalists They take advantage of the workers. The community or state must act to protect workers. • Capitalism creates an unequal distribution of wealth and material goods. • The unequal distribution of wealth and material goods is unfair. A better system is to distribute the goods according to the needs of each person.
Consider the following people who lived in England in the 19th century: Laborer, shop owner, factory owner, unemployed craftsman. Which of them would prefer capitalism and socialism? Why?
Capitalism • People have their own businesses and lands and own them and the production methods. • Progress occurs when individuals follow their own interest. • Companies follow their own interest by competing for consumers' money. Every business tries to produce better and less expensive goods or services than those of the competition. • Consumers compete to buy the best products at the lowest prices. This competition shapes the market by affecting what businesses can sell. • The government must not interfere in the economy because competition creates efficiency in business.
Socialism The community or the state must own the property and the means of production. Progress occurs when a community cooperates for the good of all. Socialists believe that capitalists They take advantage of the workers. The community or state must act to protect workers. • Capitalism creates an unequal distribution of wealth and material goods. • The unequal distribution of wealth and material goods is unfair. A better system is to distribute the goods according to the needs of each person.
Consider the following people who lived in England in the 19th century: Laborer, shop owner, factory owner, unemployed craftsman. Which of them would prefer capitalism and socialism? Why?
