Comparing Economic Systems [ushistory.org]
American Government 1. The Nature of Government a. The Purposes of Government b. Types of Government c. What Is a Democracy? d. Democratic Values Liberty, Equality, Justice 2. Foundations of American Government a. The Colonial Experience b. Independence and the Articles of Confederation c. Creating the Constitution d. The Bill of Rights 3. Federalism a. The Founders and Federalism b. Tipping the Scales Toward National Power c. Federal-State Relations Today: Back to States' Rights? 4. American Political Attitudes and Participation a. American Political Culture b. What Factors Shape Political Attitudes? c. Measuring Public Opinion d. Participating in Government e. Voting: A Forgotten Privilege? 5. How Do Citizens Connect With Their Government? a. Political Parties b. Campaigns and Elections c. Interest Groups d. The Media e. The Internet in Politics 6. Congress: The People's Branch? a. The Powers of Congress b. Leadership in Congress: It's a Party Matter c. The Importance of Committees d. Who Is in Congress? e. How a Bill Becomes a Law 7. The Presidency: The Leadership Branch? a. The Evolution of the Presidency b. All the President's Men and Women c. Selection and Succession of the President d. The President's Job e. Presidential Character 8. The Bureaucracy: The Real Government a. The Development of the Bureaucracy b. The Organization of the Bureaucracy c. Who Are the Bureaucrats? d. Reforming the Bureaucracy 9. The Judicial Branch a. The Creation of the Federal Courts b. The Structure of the Federal Courts c. The Supreme Court: What Does It Do? d. How Judges and Justices Are Chosen e. The Power of the Federal Courts 10. Civil Liberties and Civil Rights a. Rights and Responsibilities of Citizens b. First Amendment Rights c. Crime and Due Process d. Citizenship Rights 11. Policy Making: Political Interactions a. Foreign Policy: What Now? b. Defense Policy c. Economic Policy d. Social and Regulatory Policy 12. State and Local Governments a. State and Local Governments: Democracy at Work? b. Financing State and Local Government c. Who Pays for Education? 13. Comparative Political and Economic Systems a. Comparing Governments b. Comparing Economic Systems c. A Small, Small, World?
Karl Marx and Friedrich Engels turned the world upside down.
Until the publication of their 1848 Communist Manifesto, much of the western world followed a course where individuals owned private property, business enterprises, and the profits that resulted from wise investments. Marx and Engels pointed out the uneven distribution of wealth in the capitalist world and predicted a worldwide popular uprising to distribute wealth evenly. Ever since, nations have wrestled with which direction to turn their economies.
Image from Capitalism Magazine (http://www.CapitalismMagazine.com). Used with permission.
Karl Marx, the 19th century father of communism, was outraged by the growing gap between rich and poor. He saw capitalism as an outmoded economic system that exploited workers, which would eventually rise against the rich because the poor were so unfairly treated. Marx thought that the economic system of communism would replace capitalism. Communism is based on principles meant to correct the problems caused by capitalism.
The most important principle of communism is that no private ownership of property should be allowed. Marx believed that private ownership encouraged greed and motivated people to knock out the competition, no matter what the consequences. Property should be shared, and the people should ultimately control the economy. The government should exercise the control in the name of the people, at least in the transition between capitalism and communism. The goals are to eliminate the gap between the rich and poor and bring about economic equality.
Socialism, like communism, calls for putting the major means of production in the hands of the people, either directly or through the government. Socialism also believes that wealth and income should be shared more equally among people. Socialists differ from communists in that they do not believe that the workers will overthrow capitalists suddenly and violently. Nor do they believe that all private property should be eliminated. Their main goal is to narrow, not totally eliminate, the gap between the rich and the poor. The government, they say, has a responsibility to redistribute wealth to make society more fair and just.
There is no purely capitalist or communist economy in the world today. The capitalist United States has a Social Security system and a government-owned postal service. Communist China now allows its citizens to keep some of the profits they earn. These categories are models designed to shed greater light on differing economic systems.
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Continued here:
Comparing Economic Systems [ushistory.org]
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