Economic System-"how society chooses to employ resources to produce goods and services and distri...

1. Capitalism- "all or most of the factors of production and distribution-such as land, factories, railroads, and stores-are owned by individuals"

1.1. led to wealth creation in most of the world

1.2. operated for profit

1.3. business people decide products, prices, & wages...NOT GOVERNMENT OFFICIALS

1.4. CONS: income inequality, less opportunity for elderly & disabled, breeds greed & deception

1.5. market dictates whats produced & how much

1.6. PROS: allows open competition, gives the poor a chance to work there way up, encourages business efficiency,

1.7. foundation of U.S., England, Austrailia, & Canada

1.7.1. U.S. has a mixed economy. Government determines minimum wage, sets farm prices, & lends money to failing businesses

2. Socialism- "some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people"

2.1. high taxes to pay for social programs

2.2. PRO: social equality, free college, free health care, free child care, longer vacations, shorter hours, better benefits

2.3. Con: fewer incentives for business owners, high earners pay extremely high taxes leading to brain drain (intelligent people moving to other countries)

2.4. fewer inventions/less innovation

3. Communism-"government makes almost all economic decisions and owns almost all the major factors of production."

3.1. very intrusive into lives (i.e. religion)

3.2. lack of supply & demand leads to shortages of food, clothes, etc

3.3. no incentives cause lack of hard work

3.4. system is slowly dying

3.5. North Korea, Cuba & part of Soviet Union Russia