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Market vs. Planned

Market vs. Planned. Market Based Economy. Private Property - Individuals, rather than government, are the owners of resources, goods, etc. Individual freedom - Those who have private property, goods, resources, etc. have the freedom to use property as the see fit.

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Market vs. Planned

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  1. Market vs. Planned

  2. Market Based Economy • Private Property - Individuals, rather than government, are the owners of resources, goods, etc. • Individual freedom - Those who have private property, goods, resources, etc. have the freedom to use property as the see fit. • Competitive markets - Market are used to exchange privately owned commodities and to answer the three questions of allocation.

  3. Planned Economy • Government control • Market failure inefficiencies, especially market control. • Business cycle instability that creates unemployment problems. • Concentration of wealth and income and resulting inequality problems.

  4. U.S. • Mostly free: • Business • Labor • Not so free: • Government spending • Corruption

  5. Ford Motors • Dec. 31, 1988: Ford's worldwide earnings were $5.3 billion, the highest of any auto company to date. • 2005: Ford loses market share for the 10th year in a row, and also loses its place as America's best-selling brand to GM's Chevrolet. Ford sold around 2.9 million vehicles in 2005 for a 17.4 percent market share — down from a market share of 18.3 percent in 2004 and of 24 percent in 1990.

  6. Effects… • Income/salary • Wealthy • There are people that are financially stable • Better benefit the country

  7. Continued… • Income/salary • Poverty • Free market, more space for bad decisions • Not every one has guaranteed success • If economy goes down, the people go with it, but the government still offer Medicare, social security and other type of help.

  8. China • Planned till 1980’s • “Although the reforms were encouraging, the Chinese government experienced various difficulties. It struggled to collect revenues due from provinces, businesses, and individuals; to reduce corruption and other economic crimes coinciding with the reforms; and to maintain daily operations of the large state-owned enterprises. Many of the state-owned enterprises had not participated in the vigorous expansion of the economy, and some of them had lost the ability to pay full wages and pensions.” • Read more: http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/China-OVERVIEW-OF-ECONOMY.html#ixzz2DkHaiSt5

  9. Effects • China's Going Global Policy, where Chinese companies are looking to increase their international presence by investing abroad • The Chinese government's desire to increase its overall FDI • The need to develop new markets for Chinese goods • Inequality • Urban vs. Rural • The owners always make the money, it it just so happens that the Urban Chinese people get that side of things • Works aren’t paid very much do to the fact that they just work in farms, factories etc. The Rural Chinese people tend to get this side of things. • Read more: http://seekingalpha.com/article/182514-global-effects-of-china-s-economic-growth

  10. … United States • United States is fairly free but I feel as if the government is trying to handle everything more and more each year. This is going down and yes I believe China is going to be the new power soon

  11. … China • The country of China was communist but now that it made the change, it looks like nothing is stopping it from becoming the power of the world. The economy is strong and only growing. China is cute!

  12. Work cited • http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=market-oriented+economy • http://www.uncg.edu/bae/bbt/capitalism/mixed_economy.html • http://usinfo.org/enus/economy/overview/mktec8.html • http://www.heritage.org/index/visualize • http://www.npr.org/templates/story/story.php?storyId=5168769 • http://www.gallup.com/poll/154619/americans-having-rich-class-years-ago.aspx • http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/China-OVERVIEW-OF-ECONOMY.html

  13. Presentation Rubric

  14. This was a good first draft of the presentation. Be sure to rehearse before presenting again. Be able to elaborate on your slides and know the material in more detail. If you need help or do not understand a concept please ask me and I will help explain. As you finish your presentation take a strong stand for either for a Market based or a Planned economy, much like a conclusion to an essay refer back to the body and to the evidence you just presented to tie everything together.

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