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ECONOMIC SYSTEMS – DEFINITIONS AND CHARACTERISTICS - CAPITAL ECONOMY – SOCIALIST ECONOMY – MIXED ECONOMY C. ECONOMIC SYSTEMS i) Circular Flow of Goods and Money in an Economic System Every economy is a system in which the production of many goods is organized to satisfy many wants of human beings. 1 0 0 1 -303.71 -99.27 cm )]TJ endobj )]TJ 9.96 -12.5 Td[(179:9{180:4)-413(What)-412(did)-411(Marx)-411(and)-412(Engels)-410(mean)-411(b)28(y)]TJ -9.96 -11.95 Td[(dictatorship)-243(of)-245(the)-245(proletariat? )]TJ 9.96 -12.59 Td[(153:1:)-817(Another)-519(legitimate)-517(reason)-519(for)-519(citizens)-517(to)]TJ -9.96 -11.96 Td[(hold)-435(foreign)-434(currencies)-432(is)-435(tra)28(v)28(el)-435(abroaad. 41 0 obj >> /Resources 305 0 R )]TJ/F45 9.96 Tf 248.94 630.83 Td[(So)50(cialist:)]TJ/F8 9.96 Tf 44.72 0 Td[(Then)-371(let)-371(us)-370(lo)-28(ok)-372(at)-371(a)-372(con)29(temp)-27(orary)-371(ex-)]TJ -54.68 -11.95 Td[(ample. BT ET 1 1 1 1 k 1 1 1 1 K >> endobj )-427(Strange)-286(tab)-27(o)-28(o)-287(that)-286(they)-285(don't)-286(recognize)]TJ 0 -11.96 Td[(that)-333(the)-331(w)27(ar)-333(w)28(as)-333(planned,)-331(and)-332(visiblyt)-331(so,)-333(for)-332(a)-333(long)]TJ 0 -11.95 Td[(time! >> endobj stream 1 0 0 1 72 738 cm 429 0 obj 12133 1 1 1 1 k 1 1 1 1 K )-414(source)-241(of)-243(ra)28(w)-244(ma-)]TJ 0 -11.96 Td[(terials)-409(and)-410(primary)-408(pro)-28(ducts. 1 0 0 1 -69.71 -282.71 cm /Length 441 0 R ET The essay is a synthesis of Lenin’s modifications and developments of economic theories that Karl Marx formulated in ‘Das Kapital’. This remarkable Marxist text explains fully the inescapable flaws and destructive power of Capitalism. )]TJ/F46 11.96 Tf 0 -30.24 Td[(4.1.5)-1126(Pro\014t)-376(as)-374(Rew)31(ard)-374(for)-375(Risk)]TJ/F8 9.96 Tf 0 -19.21 Td[(36:2{3)]TJ/F45 9.96 Tf 31.12 0 Td[(Capitalist:)]TJ/F8 9.96 Tf 50.07 0 Td[(Pro\014t)-346(is)-346(justi\014ed)-343(b)-28(ecause)-344(it)-346(is)-346(the)]TJ -81.19 -11.96 Td[(rew)28(ard)-333(for)-333(risk. /Font << /F8 14 0 R /F40 19 0 R /F46 12 0 R /F33 13 0 R >> /F8 9.96 Tf 0 0 Td[(54)]TJ/F40 9.96 Tf 187.45 0 Td[(CHAPTER)-335(4. /F8 9.96 Tf 0 0 Td[(if)-307(it)-307(w)28(as)-307(self-eviden)31(t)-308(that)-306(this)-307(w)28(as)-307(false. 4 endobj 1 1 1 1 k 1 1 1 1 K 1 0 0 1 4.98 0 cm )-865(Mo)-27(di\014cations)-473(are)-474(made)-474(from)]TJ 0 -11.96 Td[(up)-27(dates)-349(in)-350(industry)-349(prop)-27(osals,)-353(\050lik)28(ely)-350(\014nal\051,)-354(and)-350(the)]TJ 0 -11.95 Td[(collectiv)29(e)-332(ideas. 0.94 0.54 0 0 k 0.94 0.54 0 0 K /Type /Page ET 1 0 0 1 -9.96 -656.03 cm ET 62.56 -3.59 0.4 11.96 re f BT 1 1 1 1 k 1 1 1 1 K 8874 1 0 0 1 4.98 0 cm )]TJ >> endobj /F8 9.96 Tf 0 0 Td[(82)]TJ )-440(But)-323(so)-27(cialist)-323(com-)]TJ 0 -11.95 Td[(mon)28(w)28(ealth)-455(do)-28(es)-454(not)-456(ha)28(v)28(e)-455(to)-455(b)-28(e)-455(in)28(v)28(olv)28(ed)-455(in)-455(setting)]TJ 0 -11.96 Td[(exc)29(hange)-333(rates;)-332(that)-333(will)-334(b)-27(e)-333(set)-333(b)28(y)-333(the)-333(mark)29(et. /F46 11.96 Tf 0 0 Td[(2.10.1)-1126(T)93(ec)32(honoligal)-529(Dev)32(elopmen)31(t)-527(the)]TJ 47.82 -13.94 Td[(Primary)-367(Determinan)31(t)-367(of)-366(T)93(rade)]TJ 0 -13.95 Td[(P)31(atterns)]TJ/F8 9.96 Tf -47.82 -19.2 Td[(141:3)-492(Situation)-492(in)-491(whic)28(h)-492(comparativ)29(e)-491(adv)56(an)28(tage)-492(is)]TJ 0 -11.95 Td[(appropriate)-319(theoretical)-319(framew)29(ork:)-438(Saudi)-320(Arabia)-321(ex-)]TJ 0 -11.96 Td[(p)-27(orting)-333(oil)-334(and)-333(Greece)-331(exp)-27(orting)-333(oliv)28(e)-333(oil. 1 1 1 1 k 1 1 1 1 K /Length 49 0 R 1 1 1 1 k 1 1 1 1 K )]TJ 248.94 630.83 Td[(58:2)-429(P)28(areto)-429(Optimalit)29(y)-428(means:)-634(there)-427(is)-429(no)-428(dead-)]TJ -9.96 -11.95 Td[(w)27(eigh)29(t)-334(ineciency)87(. /Parent 37 0 R 7767 )-897(He)-484(also)-484(b)-28(eliev)30(ed)-484(that)-484(the)]TJ 0 -11.95 Td[(media)-339(serv)29(ed)-340(the)-340(rev)29(olution,)-342(and)-340(the)-340(construction)-338(of)]TJ 0 -11.96 Td[(so)-27(cialism. endobj /F8 9.96 Tf 0 0 Td[(41)]TJ 1 0 0 1 -4.98 -253.75 cm )-921(My)-492(answ)28(er)-491(is:)-762(w)28(e)-492(ha)28(v)28(e)-492(to)-492(b)-28(etter)]TJ 0 -11.96 Td[(understand)-331(exploitation)-332(and)-333(state)-333(p)-27(o)27(w)28(er. )]TJ BT /F33 9.96 Tf 0 0 Td[(Question)-384(158)]TJ )-407(This)-222(w)27(aiting)]TJ 0 -11.95 Td[(and)-270(sa)28(ving)-269(for)-270(inno)29(v)55(ations)-269(will)-270(b)-28(e)-269(rew)28(arded)-269(b)28(y)-270(higher)]TJ 0 -11.96 Td[(pro)-27(ductivit)29(y)83(. 1 0 0 1 9.96 0 cm 1 1 1 1 k 1 1 1 1 K /F45 9.96 Tf 0 0 Td[(Why)-540(do)-541(p)51(e)51(ople)-541(save)-541(in)-540(c)51(apitalism? 1 0 0 1 -453.06 -12.85 cm /Parent 87 0 R 1 0 0 1 4.98 0 cm )]TJ 9.96 -12.17 Td[(25:1{3)]TJ/F45 9.96 Tf 31.21 0 Td[(Capitalist:)]TJ/F8 9.96 Tf 50.24 0 Td[(W)84(ell,)-359(this)-354(is)-354(an)-354(example)-353(from)-354(a)]TJ -91.41 -11.95 Td[(pre-capitalist)-331(era,)-333(I)-334(am)-333(not)-333(surprised)-331(that)-333(it)-333(fails. 1 0 0 1 28.52 0 cm 1 0 0 1 0 -47.19 cm )]TJ ET endobj )-897(Cuba)-485(has)-484(w)28(ork)27(ed)]TJ 0 -11.95 Td[(v)28(ery)-391(hard)-391(on)-391(its)-391(relations)-391(with)-391(the)-391(Catholic)-391(c)28(h)28(urc)29(h,)]TJ 0 -11.96 Td[(whic)28(h)-304(is)-303(v)27(ery)-303(dieren)29(t)-304(from)-304(t)28(ypical)-303(comm)29(unist)-303(ideals)]TJ 0 -11.95 Td[(of)-449(excluding)-447(religion. )-578(W)84(e)-378(will)]TJ 0 -11.95 Td[(examine)-265(sp)-27(eci\014cally)-264(the)-266(P)28(opular)-266(P)28(o)28(w)27(er)-266(system)-264(estab-)]TJ 0 -11.96 Td[(lished)-332(in)-333(1976. )-522(Is)-360(it)-360(p)-27(ossi-)]TJ -9.96 -11.96 Td[(ble)-402(under)-402(so)-27(cialism)-401(to)-404(in)29(ternalize)-401(externalities,)-418(that)]TJ 0 -11.95 Td[(is,)-314(to)-310(decide)-308(b)28(y)-310(reference)-307(to)-310(the)-309(general)-309(in)28(terest? ET 1 0 0 1 9.96 0 cm /FontType 1 def ET )-710(\050But)-421(Marx)-422(also)-422(distinguishes)]TJ 0 -11.95 Td[(b)-27(et)28(w)27(een)-243(v)56(alue)-244(and)-243(use)-243(v)55(alue,)-261(something)-242(whic)28(h)-244(Sc)29(h)28(w)27(e-)]TJ 0 -11.96 Td[(ic)28(k)56(art)-333(m)28(uddles)-332(in)-332(these)-332(\014rst)-333(pages.\051)]TJ 9.96 -12.36 Td[(6:1{7:1)-302(Neo)-28(cloassical)-300(solution:)-428(\134b)-27(egins)-301(with)-302(a)-302(con-)]TJ -9.96 -11.96 Td[(cept,)-314(adds)-310(a)-310(couple)-310(of)-310(de\014nitions,)-313(and)-310(then)-310(in)29(v)27(ok)28(es)-310(a)]TJ 0 -11.95 Td[(mathematical)-331(theorem". ET 1 0 0 1 -69.71 -52.75 cm ET /F8 9.96 Tf 0 0 Td[(and)-323(sp)-27(endthrift)-321(as)-323(c)28(haracter)-322(masks)-322(executing)-321(the)-323(in-)]TJ 0 -11.95 Td[(ner)-345(tendencies)-343(inheren)30(t)-346(in)-346(the)-345(so)-28(cial)-345(forms)-345(of)-346(w)28(ealth)]TJ 0 -11.96 Td[(in)-390(our)-390(so)-28(ciet)29(y)84(. )]TJ 9.96 -12.24 Td[(30:1)]TJ/F45 9.96 Tf 20.7 0 Td[(Capitalist:)]TJ/F8 9.96 Tf 49.65 0 Td[(lab)-27(or)-300(prices)-298(w)27(ould)-299(fail)-299(to)-300(\015uctuate)]TJ -80.31 -11.95 Td[(adequately)85(,)-399(therefore)-383(supply)-384(w)27(ould)-385(b)-27(e)-386(insensitiv)31(e)-386(to)]TJ 0 -11.96 Td[(demand.)-443(This)-333(criticism)-331(will)-333(b)-28(e)-333(addressed)-330(in)-333(c)28(h.)-333(8. )-658(Supply)-403(is)-405(balanced)-403(b)28(y)]TJ 0 -11.96 Td[(Demand. )]TJ )-836(In)-464(order)-464(to)]TJ 0 -11.96 Td[(understand)-389(the)-392(h)28(uman)-391(righ)29(ts)-392(situation)-391(in)-391(Cuba)-392(one)]TJ 0 -11.95 Td[(m)28(ust)-341(strip)-341(a)27(w)28(a)27(y)-342(this)-341(misinformation)-340(and)-342(lo)-28(ok)-342(at)-342(the)]TJ 0 -11.96 Td[(real)-333(Cuba. endstream /F50 8.97 Tf 0 0 Td[(Agnes)-309(Heller. )-712(Nev)28(ertheless,)-442(it)]TJ 0 -11.95 Td[(demonstrated)-463(its)-465(feasibilit)30(y)-465(o)27(v)28(er)-465(a)-465(long)-465(p)-28(erio)-27(d,)-498(see)]TJ 0 -11.96 Td[([Sz)29()472(e88]. )]TJ endstream 1 1 1 1 k 1 1 1 1 K 1 1 1 1 k 1 1 1 1 K BT stream >> /Length 325 0 R endstream It is important to keep in mind that this definition was composed by Marxists, who dominated English departments for most of the Twentieth 1 1 1 1 k 1 1 1 1 K /Font << /F40 19 0 R /F8 14 0 R /F46 12 0 R /F45 28 0 R /F44 12 0 R >> ET )-495(The)-351(life)-349(time)-350(of)-351(the)-350(inno)29(v)55(ator)-350(comes)]TJ 0 -11.96 Td[(to)-308(mind,)-312(but)-308(this)-308(has)-307(nothing)-308(to)-308(do)-309(with)-308(pro)-27(duction. dup 55 /seven put 1 0 0 1 4.98 0 cm ET 1 0 0 1 4.98 0 cm )-1137(Jok)28(e)]TJ 0 -11.95 Td[(ab)-28(out)-333(\134the)-333(rest)-332(of)-333(the)-333(money)85(. ")-430(\050B\051)-288(When)-287(so)-28(ci-)]TJ 0 -11.95 Td[(et)28(y)-274(pa)28(ys)-274(lo)27(w)-275(w)28(ages)-274(for)-274(rote)-274(w)27(ork,)-286(some)-274(m)29(ust)-274(w)27(ork)-274(for)]TJ 0 -11.96 Td[(basic)-305(surviv)57(al.)-435(\134W)83(ork)-305(hard)-305(or)-306(suer! BT 232 0 obj << BT ET /Resources 338 0 R /F45 9.96 Tf 0 0 Td[(Show)-615(how,)-679(in)-615(tr)51(ansp)50(ortation,)-680(a)-615(se-)]TJ -64.73 -11.95 Td[(quenc)51(e)-295(of)-294(r)52(ational)-295(individual)-294(de)51(cisions)-294(yields)-294(an)-295(over-)]TJ 0 -11.96 Td[(al)-51(l)-357(irr)51(ational)-358(outc)50(ome. 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BT ET ET 1 0 0 1 4.98 0 cm 11110 412 0 obj )-442(If)-325(a)-326(leftist)-323(w)27(ould)-325(sa)28(y)-325(something)-323(lik)28(e)-325(that)]TJ 0 -11.96 Td[(it)-469(w)28(ould)-469(b)-27(e)-469(called)-468(the)-468(crudest)-467(tec)29(hnological)-468(reduc-)]TJ 0 -11.95 Td[(tionism. ET BT /Type /Page )]TJ/F8 9.96 Tf 9.96 -19.46 Td[(74:2{3)-361(Can)-360(externalities)-357(b)-27(e)-360(o)28(v)28(ercome? BT 1 0 0 1 4.98 0 cm /MediaBox [0 0 612 792] )]TJ 9.96 -12.47 Td[(88:3/o)-327(So-called)-324(mass)-325(subscription)-323(b)-27(onds)-325(w)27(ere)-324(an-)]TJ -9.96 -11.95 Td[(other)-333(hidden)-331(income)-332(tax. 1 0 0 1 468 0 cm 1 0 0 1 9.96 0 cm )]TJ 9.96 -12.76 Td[(42-43:1)-338(The)-336(currency)-334(w)28(as)-336(used)-335(to)-337(mak)28(e)-336(exc)29(hanges)]TJ -9.96 -11.96 Td[(b)-27(et)28(w)27(een)-224(v)56(arious)-224(sections)-223(of)-224(the)-225(econom)30(y)-225(lik)28(e)-225(the)-224(farm,)]TJ 0 -11.96 Td[(urban,)-332(and)-333(go)27(v)28(ernmen)30(t)-333(sectors. 313 0 obj << /F33 9.96 Tf 0 0 Td[(Question)-384(129)]TJ ET favor of a capitalist or socialist economic system and justify why • Assignment: You will write a speech from the perspective of either Marx or Smith arguing why your economic system is better than the other. 1 0 0 1 -19.93 -31.66 cm /F33 9.96 Tf 0 0 Td[(Question)-384(184)]TJ )-627(In)-394(this)-393(w)27(a)28(y)-395(the)-393(econom)29(y)-395(do)-27(es)-394(not)-394(do)-394(an)28(ything)]TJ 0 -11.95 Td[(unless)-312(it)-315(is)-314(pro)-27(dded)-313(along)-315(with)-314(either)-313(moral)-314(exhorta-)]TJ 0 -11.96 Td[(tions)-333(or)-333(material)-332(incen)29(tiv)28(es. )]TJ/F8 9.96 Tf 9.96 -21.8 Td[(11:1)-572(Although)-572(Marx)-571(rejected)-570(utopianism,)-629(Marx)]TJ -9.96 -11.96 Td[(himself)-442(also)-444(has)-444(utopian)-444(elemen)30(ts. 1 0 0 1 4.98 0 cm /Resources 372 0 R 1 0 0 1 59.75 0 cm )]TJ 9.96 -12.87 Td[(68:1)-247(No)28(w)-247(again)-246(the)-245(t)28(w)27(o-fold)-246(thinking)-245(of)-246(the)-245(Bolshe-)]TJ -9.96 -11.96 Td[(viks)-369(ab)-27(out)-369(this:)-516(on)-369(the)-369(one)-368(hand,)-378(this)-368(w)27(as)-369(a)-370(regret-)]TJ 0 -11.95 Td[(table)-277(setbac)29(k,)-288(on)-278(the)-277(other)-277(hand,)-288(they)-277(sa)29(w)-279(it)-277(as)-278(pro)-27(of)]TJ 0 -11.96 Td[(that)-376(the)-375(historical)-374(la)28(w)-377(w)28(as)-376(v)56(alid)-376(b)28(y)-375(whic)28(h)-376(they)-375(\014rst)]TJ 0 -11.96 Td[(had)-302(to)-302(get)-302(the)-302(coun)29(try)-302(going)-303(with)-302(capitalistic)-300(means. )-933(In)-497(1975)-497(the)-496(ro)27(y)28(al)-497(commission)-494(on)]TJ 0 -11.96 Td[(Distribution)-294(of)-296(Income)-295(and)-295(W)83(ealth)-295(rep)-27(orted)-295(that)-296(the)]TJ 0 -11.95 Td[(b)-28(ottom)-302(80)-302(p)-28(ercen)30(t)-302(of)-303(the)-301(p)-28(opulation)-301(o)27(wned)-301(less)-301(than)]TJ 0 -11.96 Td[(4%)-380(of)-380(sto)-27(c)28(k)-380(shares;)-401(and)-380(w)27(ork)28(ers)-379(who)-380(do)-380(o)28(wn)-381(shares)]TJ 0 -11.95 Td[(amoun)29(t)-303(to)-302(little)-301(w)27(orth,)-308(when)-302(compared)-300(to)-303(their)-301(total)]TJ 0 -11.96 Td[(w)27(ages)-332(and)-333(debts. 44 0 obj << endstream ET )]TJ 9.96 -12.05 Td[([This)-338(con)28(tradiction)-337(b)-28(et)28(w)28(een)-338(so)-27(cial)-338(pro)-28(duction)-337(and)]TJ -9.96 -11.96 Td[(individual)-466(consumption)-465(is)-466(also)-468(around)-466(in)-467(a)-468(mark)29(et)]TJ 0 -11.95 Td[(econom)29(y;)-333(Marx's)-333(third)-332(con)28(undrum)-331(in)-333(Chapter)-333(2. 1 0 0 1 4.98 0 cm )-560(It)]TJ 0 -11.96 Td[(w)27(ould)-360(consist)-360(of)-360(a)-362(job)-360(complex)-360(of)-360(div)28(erse)-360(tasks. /MediaBox [0 0 612 792] BT 1 1 1 1 k 1 1 1 1 K )]TJ 9.96 -12.79 Td[(42:2/o{43:1)-283(This)-281(gro)28(wth)-282(feat)-281(w)27(as)-281(then)-280(rep)-27(eated)-281(b)28(y)]TJ -9.96 -11.96 Td[(the)-333(East)-332(Europ)-27(ean)-333(coun)29(tries)-333(after)-332(the)-333(w)28(ar.
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