Chap. 23

With the help of your textbook and Ch 23, please explain the differences among capitalism, socialism and communism.   Then explain the pros and cons that each hold. 

Capitalism:   It is a free enterprise system that is characterized by private or corporate ownership of capitol goods and investments that is determined by private decision than by state conrol.  There are private ownership, individual initiative, profit and competition.  The pro and cons determines on the profit or investments on the buiseness.

Socialism:  It is an economic and political philosophy based on the idea that the benifits of economicactivity, wealth should be distributed throughout the society.  Has public ownership by which goods and servies are produced and distributed. They want political equality nationalization, welfare, taxation and planned economy. The cons are that the countries have a tendency to develop too many layers of bureaucracy and to complex. The pros say that is more better than capitalism because it evens their inequalites.

Communism:  It is the collective or state ownership of land and other productive property. They have central planning that sets prices and decides how goods and services will be distributed. It has the role of the communist party, central planning, collectivization and state ownership. The cons are that the fall of the soviet union fell and countries are not having enough growth in agriculture. The pros are that farms were brought together in a commune but then fell.