EIB 3 Ch. 4

6 flashcards · Other · by Daniel F.

  1. Capitalism vs Socialism

    Capitalism: economic system in which the major portion of production and distribution is in private hands Socialism: economic system characterized by public ownership of property and a plannend economy

  2. Historical background of Capitalism

    Mercantile Capitalism (15th-18th Centuries): State-supported, focused on exports, bullion accumulation, and colonial expansion. Industrial Capitalism (18th-19th Centuries): Driven by industrial revolution, emphasized competition, open markets, and large-scale production. Financial Capitalism (Late 19th-Early 20th Centuries): Rise of corporations, stock markets, and concentration of capital in financial institutions. State Welfare Capitalism (20th Century): Government intervention in the economy…

  3. Features of Capitalism

    Key Features: Companies: Separate legal entities with rights and obligations, distinct from individuals involved. Profit Motive: Driving force of capitalism, assumes economic self-interest as primary motivator. Competition: Regulates economic activity, keeps prices down, and (theoretically) benefits society. Private Property: Central to capitalism, includes ownership of the means of production and distribution.

  4. Critiques of capitalism

    Theoretical: Inequality: Capitalism inherently generates and perpetuates economic disparities, failing to address poverty and unequal opportunities. Human Nature: Reduces humans to economic maximizers, neglecting other aspects of human motivation and well-being. Materialism: Promotes excessive consumption as the path to happiness, ignoring alternative values and lifestyles. Operational: Oligopolies: Concentration of economic power in a few large corporations undermines competition. Corporate We…

  5. Is capitalism morally justified

    Arguments for Capitalism: Natural Right to Property: Lockean argument that individuals have a right to the fruits of their labor, justifying private ownership. Adam Smith's Invisible Hand: Utilitarian argument that pursuing self-interest in a free market unintentionally benefits society through increased productivity and wealth.

  6. Contemporary Challenges for U.S. Capitalism

    Decline of Manufacturing: Outsourcing and a focus on services raise concerns about long-term economic health and technological leadership. Outsourcing and Trade Deficit: Job losses, wage pressure, and growing foreign debt pose potential risks. Short-Term Focus: Obsession with quarterly profits and share value hinders long-term planning and encourages unethical behavior. Changing Attitudes toward Work: Declining work ethic, increased desire for meaningful work, and emphasis on work-life balance…