Socialism,Capitalism

Socialism
Capitalism
&
Mixed Economy
Dr. Kavita Srivastava
Dr
Department of Management
ITS Ghaziabad
ITS,
Gh b d

Philosophy of socialism
y Means of production are owned or controlled by the state
y Resource allocation , investment pattern, consumption and

income distribution are directed and regulated by the

government

Importance in present business

y Social justice
y Economic Stability
y Rational
R ti l Allocation
All ti off resources
y Higher economic Growth
y Absence of class struggle

Capitalism
y Private ownership of means of production
y Individual decision making
y Use
U off market
k t mechanism
h i

Features
y Free Enterprise
y Private ownership of property
y Limited
Li it d role
l off governmentt
y Absence of central plan
y Consumers sovereignity
y Competition
y Freedom to save and invest
y Freedom of choice of operation
p

Mixed Economy
y Coexistence of public and private sector

Features
y Public sector
y Private ownership of means of production and profit induced
y
y
y
y

commodity production
Decisive role of market mechanism
S i l security
Social
i andd other
h welfare
lf measures
Abolition of free trade
State intervention in management of joint sector companies