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Capitalism, Socialism, Communism ChartComponentCapitalismSocialismCommunismEconomic Decisions-Economic decisions are determined by interactions within a market by the producer and consumer. Competition is also promoted to regulate quality, quantity, and price.-Economic decisions on the supply side are determined by the government, while consumers retain decision making concerning demand.-All economic decision making is determined by the governing institution (community or government) and the individual makes no decisions.Private Property and Class-Property is owned by private individuals or institutions and social classes are apparent. Typically those who control the means of production are located in the highest social classes. - The Factors of Production are owned by the government (aka public property), while private property is retained by consumer in terms of goods and products consumed. Disparity in social class is diminished- All property is public property, meaning it is owned by the people collectively (possibly government). There are no social class as everyone is equal. Role of Government-Ideally, government’s purpose is to ensure equal economic opportunity and protection of private property. Laissez Faire does not mean there is no government regulation, some regulation is needed to protect these two principles. -Government is the main economic planner concerning production as they are the only true “entrepreneurs”. Rationale behind this is that they will not be driven by mass profit to exploit the working class as private individuals may. This concept is used to justify and facilitate a greater distribution of wealth. - Government/Community purpose is to act as producer and distributor to each individual based on their needs, ensuring that each person’s needs are taken care of equally. Role of the Individual-Individual achievement and success is highly rewarded usually in the form of an increase in private property and further economic independence. Individual failure, however, is consequential and can be damaging as there are NO protections against failure.-The role and status of the individual of a socialist nation is a cross between capitalism and communism, depending on the style. Typically individuals in a socialist nation are rewarded for the level of their contribution, however, those rewards are distributed by the government and generally are not as rewarding as those in capitalism. Keep in mind purpose is to diminish wealth disparity between classes. -The role of the individual is almost non existent due to the primary purpose being to meet the needs of the state and its people collectively. Therefore, individual success or failure has no bearing on one’s economic standing. ................
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