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Economics: Capitalism, Socialism & Communism Explained


Okay today I am going to be talking about the economic ideas that is grew up that sparked in the 19century. That controls our economies in the world today. Let’s get started:

Capitalism it was theorized by Adam Smith, Scottish economists who wrote the book the called The Wealth of Nations.

What’s The Idea Of Capitalism?

  • Economy works when supply and demand operates without government interference.
  • Laissez-fair (“to let alone”): or hands off with government have no control over businesses and the theory is.
  • Buyers and sellers actor acts in their own self-interest.
  • Businesses compete with others to produce goods as inexpensively as possible.
  • Efficient producers make more profit, hire more workers and expand.
  • This is the theory of capitalism consumers by the best goods at the lowest prices. Because as a result of capitalism.
  • More people started their own businesses, and capitalist societies.
  • Standard of living increased for many, but not for all.
  • Dissatisfaction with poor working conditions and unequal distribution of wealth.
  • Now here is a fun fact, did you know that the man created monopoly? Created it to try to prove to everyone that in the capitalist society only one person wins, as you can see nowadays in the Occupy Wall Street Movement, The one percent have or the money that the 90 percent do not have. This is on equal distribution in a capitalist society.

    What Is Socialism?

  • Is the means of production is controlled by society.
  • In practice it is controlled by the government.
  • And this means that the wealth is distributed equally among all citizens.
  • Depending on how hard they work in a socialist society. For example Sweden people pay very high taxes so they get free health care, few welfare and all these stuff, and a capitalist society that doesn’t happen, where at least not yet.

    The Socialist Leader

  • Socialism was theorized by Robert Owen.
  • He sought to replace competition between businesses with cooperation.
  • He attempted this in Scotland with great success, but failure in the United States.
  • And this is the evident if you go to the United States nowadays. You will find republican and democratic leaders saying say no to socialism in America fighting’s and they fight socialism. What they do not realize, is that the Social Security Act, Social Security in essence and Obama care is a form of socialism. We can see nowadays that the Kappa society that countries are moving slowly towards socialism, while still calling it capitalism but in essence it is really not capitalism.

    What is communism? The third type of the economic system:

  • Karl Marx who was the leader of communism, He was German and His associate was Frederick and Angels.
  • Marx wrote The Communist Manifesto (with Engels) and he also wrote Das Capital.
  • It was the response in the injustices of capitalism.
  • Communism is a form of socialism, let us not make the mistake of calling it socialism but it is a form of socialism.
  • What is Communist Theory? The theory behind is that:

  • History advances through conflict. Conflict must happened so history advances.
  • And society is divided into classes.
  • You have the Bourgeoisie: which are the middle class and the Proletariat: which is the working class.
  • Now in the communist society they do not like ruling class controlling production.
  • So they build a society in which the people own everything.
  • And this is because class conflict is inevitable. You will always have conflict between the upper-class and the lower class and that is why the Communist Society Theory is brought up.
  • Revolution is needed to make the ruling class give up control.
  • In the communists theory there is no private property.
  • Wealth is shared by all.
  • The social classes would thus vanish, and when social classes vanish everyone is leaving same level. Knowing that their neighbor does not have more than them and they do not have more than their neighbor.
  • There would be no need for government. Because why would you kill, why would you steal and why would you commit crime.

    This is communism today, this is just a funny you know in reality you have the communist leaders their abusing. Because in a capital communist society people can never have everyone rich, no one is ever completely rich even though we try. But everything has to be called gradual communism today you have the government controlling everything. Very rich people in government and very poor people are in everyone else were the working class is poor. China now is moving slowly towards there capitalism and that if you live in China and you work hard enough you can get make more money.

    This was a presentation on economic theories and ideas of the 19th century that are still enacted today ends and countries all around the world. Sweden, Norway, Vinland are all socialist countries you have capitalist countries that the United States and the United Kingdom and we also have the communist countries like China, Vietnam, North Korea in Cuba.

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