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CAPITALISM AND SOCIALISM

hegemonic systems in the contemporary world
1) Make a planisferiopolĂ­tico. With the information you find at: www.wikipedia.org (socialist state), guide the world, or History IV, you will build a map:
a) The capitalist countries today b) The socialist countries today c) Mark with a circle, countries were
socialist and changed its system between 1989 and 1992.No forget to references and clear title.
2) When you find the following words in the text, Define it using your own vocabulary with the help of the dictionary
* Production facilities ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
* Profitability ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...

CAPITALIST SYSTEM

Capitalism is an economic system based on private ownership, where individuals and business firms carry out production and exchange of goods and services based on free competition in the market. So they are also called market economy countries
sometimes used the term to describe the mixed economy capitalism with public sector involvement that prevails in almost all industrialized countries' economies. ORIGIN AND EVOLUTION


The development of capitalism is a phenomenon europeo.Fue a slow process that begins in the late Middle Ages, accelerating from the eighteenth century with the Industrial Revolution and the rise of the bourgeoisie in Western Europe. From Europe, the capitalist system was extended to the whole world through imperialism, being the unique socio-economic system at the global level through the end of World War I, after which the Soviet Union established a new socio-economic system, communism, which became the opposite of capitalism. FEATURES


a) Economy, property and businesses
means of production-land, buildings, machinery and tools used to produce goods and services for consumption - and which are the capital, are privately owned.
The aim of the capitalist mode of production is to maximize the benefit, ie to sell their products to the difference between sales value and costs (raw materials, energy, wages) is as large as possible. The benefits accrue to the capitalist, which decides how and where to invest it.
The capitalist firm has no profit, does not withstand competition from other companies and is eliminated from the competition mercado.Para, the company devotes part of its profits to improve the production, purchase new equipment or expand the business, so they can meet consumer demand
The economy is regulated by the market, ie the interaction between buyers (demand) and sellers or producers (supply) that occurs in markets. Thus, competition determines the prices of products. (You know, like fixing the price of strawberries for example?) ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..
b) Role of the State
private sector control by the state, should be minimal, the only government activity is required to manage the national defense, to respect private property and enforce contracts. This vision of the role of government in the capitalist system has changed greatly during the twentieth century. Thus, by country and era, the government sometimes intervenes in the economy through stimulus certain activities or sectors, and / or reserving a monopoly activities such as energy, communications and so on.

c) Income, social class
The personal income from personal wealth (eg, the one transmitted by inheritance) of business activities undertaken by those with capital, and they have no means of production themselves, working for capitalists or the state in exchange for a salary (fixed income)
The priority is profitability and not social need. Consumers can spend their earnings as they wish, but only able to meet the needs they can afford.
The state provides part of the social insurance, financed in part by the contributions of workers and enterprises. There
social classes largely determined by their access to wealth. GOVERNANCE


democratic regimes predominate, characterized by the existence of political parties, suffrage unrestricted respect for the will of the people, separation of powers and respect for fundamental human freedoms thought, expression, equality before the law
But also in the capitalist countries are authoritarian regimes, military dictatorships such contradictions in the system


The concentration of wealth in few hands and the impoverishment of other sectors of society. This sometimes leads that unhappy people, to rebel against the system. Do you know any revolution that has led to the passage of the socialist system to capitalism? Where? When? ... ... ... ... ... ... ... ... ...
appeared capitalism with economic cycles: periods of expansion and prosperity followed by economic recessions and depressions are characterized by the decline in productive activity and rising unemployment. Do you remember any crisis of this kind? ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Although in theory argues that capitalism provides equal opportunities in practice, is easier to win if you belong to a wealthy family from a poor family that


ideological framework
In the eighteenth and nineteenth century liberalism doctrine arises that is considered the coverage of capitalism, whose basic principle is economic freedom that is that the state does not intervene in the economy.
However, in the twentieth century capitalism apply interventionist, in which the state sets standards regulating the economic and social life. One example is, after the 1929 crisis, economic policy inspired by John Maynard Keynes and carried out by Franklin D. U.S. Roosevelt of America, which was known as New Deal. (Remember that it was?) Deep into this issue by studying the countries of the "welfare state in Europe.
From the 70, with the oil crisis, Keynesian theory began to be revised. Surge Neoliberalism.
Neoliberals proposed to reduce the role of the state, giving greater freedom argument, believing that the engine of the economy was the rise in corporate profits. The objective of the neoliberal economy is lifting the barriers that rise to competition, or opening the economy to international competition, eliminating protections, incentives or producer support.
following these neoliberal policies, Latin American countries have made in the last decade, reforms including trade liberalization, privatization of public enterprises and reform of pension systems (for example, you know what are the AFAP? Ask your heart family) ... ... ... ... ... ... ... ...



SOCIALIST SYSTEM
1) Look at the socialist countries on the map you made. What draws your attention?
2) As you read the text, and helping with the dictionary, your words define the following terms:
-Grant ....................... .................................................. ............................................
-Priority ............................................... .................................................. .................... -Expropriation
............................................... .................................................. ....................
-Abolition ............................................... .................................................. .................... ORIGINS

While the desire for social justice is very remote, the term that arose in Europe in the nineteenth century as a critique of capitalism doctrine developed by Karl Marx and Frederick Engels. We then see that socialism (as opposed to capitalism) emerges as a theory and try to implement for the first time Russia after the Bolshevik Revolution of 1917 inspired by Marxism and led by Lenin. FEATURES



a) Economy
* property is not supported private ownership of the means of production and trade so that the land, waters, forests, factories, mines, transport, banks etc. , there Estado.Solamente owned private ownership of the commodities and comfort. Theoretically, the properties belong to society as a whole and are administered on behalf of society by the state.
This criteria vary by country, in some, all economic activity was socialized, other properties were allowed free farm cooperatives or small plots of land, shops or workshops.

b) Role of the state
* Economy planned and directed by the State, since this is the only operator. A. to decide that he will make, where and how much, and as distributed. The socialist countries tend to Five Year Plans (5 years) in fixing the level of production, the means to achieve that level of investment, the amount of labor, consumption, prices and wages. For ej.los Stalin's Five Year Plans, have led to major projects envergedura (seeking information about them)

c) Income, classes Social
revenues depend on the wages paid for their work in the state. The State as employer, tends to reduce disparities in access to wealth.
* The government says the basic needs as housing, food, health, education and culture of free or heavily subsidized by the state. For the USSR ej.en rents did not increase from 1928.
WHAT ARE THE SYSTEM OF GOVERNMENT?
* There is no freedom of parties. There is only the communist party
* The policy lost in this regime the importance accorded to it in the capitalist countries and instead develop large projects and security plans. The government can keep in power for many years without any major crisis occurs.
* There are barriers and limitations to freedom of thought, expression, assembly, demonstration etc. MAIN CONTRADICTIONS


* Theoretically there are no social differences, and that wealth is distributed equitably. In practice there are differences of social classes, according to political or social position the person has with respect to power.
* Building a centralized, planned economy of the State requires the creation of a large network of state officials (bureaucracy) may be corruption, abuse of power and incompetence. So sometimes the processes slow and painful. The rigidity of the plans created problems because expectations are not always corresponded to the actual needs, leading to imbalance between supply and demand
* The system is based on encouraging workers to improve production because the benefits are invested in the development of country and benefit the entire community. At first it was assumed that the worker would be delivered with zeal to their work, ideological conviction, but not so in all cases, many workers were poorly motivated and productivity was low. So the socialist states sought incentives:
a) Morales: prizes and awards to workers or production centers, by miner Stakhanov ej.el in 1935 set a record in coal production.
b) Economic, eg factory that is able to produce at lower prices than foreseen, shared some of their profits among the workers. Ideological framework

When we speak of these countries call them Communists, Marxists and socialists. Clarify the use of many terms:
* Marxist, because they are based on the ideas of Karl Marx and Engels developed in the nineteenth century
* Communists because, according to the ideas of Marx, the people once down capitalism reach the stage of communism, in which private property would disappear, social class and inequality.
* Socialists because, according to Marxism, can not pass directly from capitalism to communism, but countries must go through an intermediate stage called dictatorship of the proletariat or socialist, which is taken as an expropriation of land, abolition of the right inheritance, free education for all.

we talk on the socialist ideology of two major trends:
a) revolutionary socialism based on Marxism-Leninism (also called Communists) are inspired by the Russian revolution and seek the total elimination of capitalism and the construction of a socialist regime by a popular revolution, ej.China l949, Cuba 1959.En these cases the economic and social changes will be accompanied by the introduction of a system autoritario.Actualmente some of these countries have abandoned the building of socialism (Ej.URSS) and others are introducing reforms to create a market economy combined with the state system: ej.China.
b) the reformist socialism, inspired by the ideas of the Social-Democrats (Bernstein's revisionism.) Seek to reach socialism through revolution but through gradual reform while respecting the current legislation through peaceful political struggle. Socialist parties came to power, have made social reforms (labor and social laws) but staying within capitalism.

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