Skylark College Kathmandu, Nepal

University of Madras Chennai, Tamilnadu, India

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 In years 10001820 world economy grew six-fold, in years 18201998 world economy grew 50-fold Provides Choice to customers Provides valuable goods and services Capitalism actively rewards positive traits like hard work Similarly, it punishes negative traits such as laziness and theft Narrows the gap between common person and wealthy Provides opportunity to realize dreams and desires Capitalist societies usually do not have large black markets Build on democracy Social Good

Downfall of work ethics Free Market + Self Interest Accumulation of wealth Encourages inequality in a society Business lobbying with government Monopolistic tendency Human resource exploitation Results in great disparities between income of people owning the capital resources and others

BASIS OF DIFFERENCE Resources Ownership Foundation belief Earning of wealth

CAPITALIST ECONOMY Privately owned competition brings out the best in people everyone works for his own wealth

SOCIALIST ECONOMY State owned cooperation is the best way for people to coexist everyone works for wealth which is distributed equally to everyone Protection to PSUs, Private enterprises are permitted in few businesses only Fully involved Rarely motivated as performance is not rewarded Equal distribution of income results in welfare of all Hard work is not rewarded, lazy employees also enjoy equal level of benefits

Market Scenario

Level playing field

Govt. interference Employees motivation Merit Demerit

Only in situations where laws have been broken Highly motivated on account of proportional benefits Perception of better economic growth because of competition Few individuals/groups attain powers, rest are exploited

 MIXED ECONOMY is an economy that includes a variety of private and public control, reflecting characteristics of both capitalism and socialism. All so called capitalist countries are in fact mixed economies. The USA is a good example of this since it has always been considered capitalist but in fact has been a mixed economy since at least Frederick Roosevelts time. Why?... Well it has had big govt. public ownership of education, security, public funding of the private sector, etc. China is another good example of mixed economy as it is often considered either communist or capitalist. But like USA, China is also a mixed economy.

It is also necessary to know that capitalism and socialism have collapsed and failed in the first and second worlds and only exist in third world countries.