Chapter 3: Economic Security

1. Chapter 3:Economic Security An Overview of Chapter Three

2. Needs and Wants: Needs: Things that you are required to have in order to survive. Such as: • Food • Shelter • Clothing • Warmth • Water Wants: Things that are desired not essential for survival. • Phone • Internet • Video Games

3. Workers and Employers • Most individuals who run private companies need to make a profit. • Most people get what they need through buying what they need. • Most people need to work or own a business to earn money for what they need.

4. Capitalism: • Individual Freedom is Highly Valued • Production of Goods and Services is in the hands of the Individuals • Whether or not people can meet their basic needs depends on how wealthy they are • Competition is important to help create wealth and improve society The top five capitalist countries in the world are: • Germany • United States • China • India • Japan

5. Socialism: • What’s best for the group is more important than individual freedom • Production of Goods and services is in the hands of the government • Every person should receive enough to meet his or her needs • Co-operation is important to help create wealth and improve society Most socialistic nations in the world today: • Cuba: Cuba is one of the most Socialist nations, as it has a mostly state-run economy, universal healthcare, government-paid education at all levels, and a number of of social programs. It does not have a stock exchange. • North Korea: The same is true of North Korea, which has an almost entirely state-run economy, as well as the same social programs mentioned for Cuba. Like Cuba, North Korea does not have a stock exchange. • Venezuela: Economy has more private ownership, but the government social programs are quite extensive and the foreign policy is very left-wing. Cuban doctors and teachers have been brought to Venezuela to provide some medical and educational services. • China: A substantial part of the economy is still state-run, although there are not as many social programs as there once were and universal healthcare has been eliminated. Still has a Socialist-type foreign policy, for the most part. Vietnam: A significant part of the economy is state-run. Close ties with Cuba, Venezuela, and Belarus.

6. Socialism:

7. Countries have declared themselves “Socialist” : The colors depend on when they declared themselves “socialist” Red is More than 70 years Light Purple is less than 20 years

8. “Capital” defined: • Money that has to be “invested” or put into business venture (to start it up or keep it operating) • Profit means the money the owner makes after investment and paying other expenses