Economic system  Is the structure of production, allocation of economic inputs, distribution of economic outputs, and consumption of goods and

services in an economy. It is a set of institutions and their social relations. Alternatively, it is the set of principles by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources.  An economic system is composed of people and institutions, including their relationships to productive resources, such as through the convention of property. Examples of contemporary economic systems include capitalist systems, socialist systems, and mixed economies. "Economic systems" is the economics category that includes the study of respective systems. Capitalism  Is an economic system in which the means of production are privately owned and operated for profit. Income in a Capitalist system takes at least two forms, profit on the one hand and wages on the other. There is also a tradition that treats rent, income from the control of natural resources, as a third phenomenon distinct from either of those. In any case, profit is what is received; by virtue of control of the tools of production, by the capitalists those who provide the capital. Wages are received by those who sell their labor with those tools, i.e., the workers.  There is no consensus on the precise definition of capitalism, nor on how the term should be used as an historical category. There is, however, little controversy that private ownership of the means of production, creation of goods or services for profit in a market, and prices and wages are elements of capitalism. The designation is applied to a variety of historical cases, varying in time, geography, politics and culture. Some define capitalism as a system in which all the means of production are privately owned, and some define it more loosely as one in which merely "most" are in private hands while others refer to the latter as a mixed economy biased toward capitalism. More fundamentally, others define capitalism as a system in which production is carried out to generate profit and is governed subject to the laws of capital accumulation, regardless of legal ownership titles. Private ownership in capitalism implies the right to control property, including the determination of how it is used, who uses it, whether to sell or rent it, and the right to the revenue generated by the property. Communism  Is a socio political movement that aims for a classless and stateless society structured upon common ownership of the means of production, free access to articles of consumption, and the end of wage labour and private property in the means of production and real estate  In Marxist theory, communism is a specific stage of historical development that inevitably emerges from the development of the productive forces that leads to a superabundance of material wealth, allowing for distribution based on need and social relations based on freely-associated individuals. The exact definition of

communism varies, and it is often mistakenly, in general political discourse, used interchangeably with socialism; however, Marxist theory contends that socialism is just a transitional stage on the road to communism. Leninists revised this theory by introducing the notion of a vanguard party to lead the proletarian revolution and to hold all political power after the revolution, 'in the name of the workers' and supposedly with worker participation, in a transitional stage between capitalism and socialism. Socialism  Is an economic system in which the means of production are publicly or commonly owned and controlled co-operatively, or a political philosophy advocating such a system. As a form of social organization, socialism is based on co-operative social relations and self-management; relatively equal power-relations and the reduction or elimination of hierarchy in the management of economic and political affairs.  Socialist economies are based upon production for use and the direct allocation of economic inputs to satisfy economic demands and human needs (use value); accounting is based on physical quantities of resources, some physical magnitude, or a direct measure of labor-time. Goods and services for consumption are distributed through markets, and distribution of income is based on the principle of individual merit/individual contribution.  As a political movement, socialism includes a diverse array of political philosophies, ranging from reformism to revolutionary socialism. State socialist currents of socialism advocate for the nationalization of the means of production, distribution and exchange as a strategy for implementing socialism; while social democrats advocate public control of capital within the framework of a market economy. Libertarian socialists and anarchists reject using the state to build socialism, arguing that socialism will, and must, either arise spontaneously or be built from the bottom up utilizing the strategy of dual power. They promote direct worker-ownership of the means of production alternatively through independent syndicates, workplace democracies, or worker cooperatives. Fascism  Is a radical, authoritarian nationalist political ideology. Fascists advocate the creation of a totalitarian single-party state that seeks the mass mobilization of a nation through indoctrination, physical education, and family policy including eugenics. Fascists seek to purge forces, ideas, and systems deemed to be the cause of decadence and degeneration and produce their nation's rebirth based on commitment to the national community based on organic unity where individuals are bound together by supra personal connections of ancestry, culture, and blood. Fascists believe that a nation requires strong leadership, singular collective identity, and the will and ability to commit violence and wage war in order to keep the nation strong. Fascist governments forbid and suppress opposition to the state.

 Fascists promote violence and war as actions that create national regeneration, spirit and vitality. Fascists exalt militarism as providing positive transformation in society, in providing spiritual renovation, education, instilling of a will to dominate in people's character, and creating national comradeship through military service.  Fascism is anti-anarchist, anti-communist, anti-conservative, anti-democratic, antiindividualist, anti-liberal, anti-parliamentary, anti-bourgeois, and anti-proletarian. It entails a distinctive type of anti-capitalism and is typically, with a few exceptions, anti-clerical. Fascism rejects the concepts of egalitarianism, materialism, and rationalism in favor of action, discipline, hierarchy, spirit, and will. In economics, fascists oppose liberalism (as a bourgeois movement) and Marxism (as a proletarian movement) for being exclusive economic class-based movements Fascists present their ideology as that of an economically trans-class movement that promotes resolving economic class conflict to secure national solidarity. They support a regulated, multi-class, integrated national economic system. Fascism was founded by Italian national syndicalists during World War I who combined left-wing and right-wing political views, but it gravitated to the right in the early 1920s.[16][17] The majority of scholars generally consider fascism to be on the far right,[18][19][20][21] while others claim it is the extreme form of a centrist ideology.[22] Laissez-faire  Describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies.  The phrase laissez-faire is French and literally means "let do", but it broadly implies "let it be", or "leave it alone." Free enterprise  It is the freedom of individuals and businesses to operate and compete with a minimum of government interference or regulation. It enables individuals and businesses to create, produce, transform, develop, innovate and compete in the marketplace. As they are able and willing, enterprising people produce goods and services for profit, offer their labor for wages and own the resources needed to produce and sell goods and services. In this system, no one forces people to be creative, productive or enterprising. Instead, they pursue what they believe to be best for them. By producing the goods and services that society values most highly, a free enterprise system results in the greatest efficiency, or lowest costs, of any economic system. It is the system most compatible with individual freedom and political democracy.

System Technology Institute (STI) Sta. Cruz, Laguna S.Y. 2011- 2012

Submitted by: Maerilyn C. Andallo BSBM 101

Submitted to: Mr. Paul Castaneda Teacher