[Music] good day ladies and gentlemen [Music] this is dr fred your professor in your course comparative economic planning first is we'll try to define what an economic planning is in life we do have plans there are instances where things go beyond our plan central with countries particularly they have to make plans not only on how they govern their specific country but they have to plan as far as the economy is concerned so what is economic planning according to deakin sun and economic planning as the making of major economic decisions major economic decisions in the sense that it has to be a conscious decision by those who are in power and in doing so they have to have bases and one of this is basis comprehensive survey of their existing or potential resources [Music] and of course they have to make a powerful study of the needs of the people when we do plan we do not only consider our capability to realize a certain plan but you have to consider also the internal and the external factors that will affect the realization of a certain plan so in planning for how an economy is to be run there are three essentials to be considered by the planners first the economic plan should based upon the initial resources of the country in doing so they have to make a careful inventory of the present and future availability of their manpower and domestic resources they have to see to it if they're present and future resources as well as their manpower is enough to realize their economic plan second is essential the country to set up feasible targets or goals for the terminal date they have to have a target or a goal to be realized in a specific number of years for its termination and this word is they have to set out policies in order to achieve those goals considering their initial resources as well as their capability to produce within the country or what they call it domestic investment countries cannot rely from foreign dependents especially in its economic goals now our next question is what is an economic system books have defined it as the organization and methods used by a country to determine what goods and services are produced how they are produced and for whom they are produced these are actually the three basic questions in economics [Music] and added to that can this be sustained in considering the question what goods and services are produced planners have to think of will this meet the needs of the people how they are produced because the country has the capability to produce this needed goods and services and for whom they are produced are we catering only the domestic market or is the country catering for the international market so in explaining economic system we also need to define political system political system is a set of processes of interaction or as a subsystem of the social system interacts with other non-political subsystems including the economic system so from time to time political system and economic system are viewed similarly and one of this system that involves both political and economic as communism so what is communism [Music] we have heard the word from day to day to news we read it to newspapers social media and other sources now what is communism [Music] authors have defined the term as a government where people shared work fairly and were paid equally the word communism comes from the latin word communis which means common or belonging to all of course there are those who believes on the principles of communism it might be you it might be someone out there that might be a friend a teacher or anybody who wish to believe in these principles of communism and there are three major beliefs of communism the first is as the rich get richer and as the poor get poorer people wanted to make everything equal maybe we experienced similar things we observe similar things as if the reeds keep on getting richer and the poor keep on getting poorer [Music] that's why there were times that we wish to make everything equal among people so that is actually the shared belief of communism and out of that they come up with this goal to get rid of social classes and make everything fair for everyone and this is a social struggle that believers have to face believers have to do things in the power in order to realize such a code now i have a question because of what you know do you think communism is a good idea if your answer is yes of course you have to explain why if no then what are the potential dangers of communism you may post your answers in the google classroom compared to communism we have another economic system which is called capitalism from the word itself capital i think you have a very nice idea for that term authors have defined capitalism as an economic and political system as well in which the country's trading industry are controlled by private owners with intention of acquiring profit those who propose capitalism have this belief that capitalism as a system will promote economic growth for the country and an increased overall standard of living to the people in other words capitalism creates capital or money and lots of money another thing is buyers or suspects of the people we influence the market through their demand and their ability to purchase goods and services so there is an interplay of the demand and supply and of course there is very little government intervention on their hand producers or businesses are actually motivated by profit and therefore they create whatever goods that i think people will buy in other words in a capitalist society businesses run the economy and the government stays out of it when i say the government has very little intervention the purpose of the role played by the government in a capitalistic society is to regulate the operations of business through its laws its regulations and other promotions to regulate business now based on what you know do you think capitalism is a good idea if yes explain why if your answer is no then what are the potential dangers of [Music] of course despite the advantages the good side of those two economic systems there are actually some downsides of this there are also problems that these systems have to face with so we'll start with the problems with communism one is lack of individuality since people have to work as one this what we call individuality to explore their potential to the optimum limit that they can have second is lack of choice they do not enjoy this freedom of choice and third problem is equal treatment for all such that one who work harder compared to the rest will be treated equally for those who do not work hard enough in like manner problems with capitalism includes this there is a growing gap between the rich and the poor the reeds get richer and the people who work for them remain poor i think you are a witness to this situation since the country is actually influenced by this economic system do you believe that communism or capitalism is a better economic system if you say yes for capitalism or you say no for communism be sure to give your reasons to support your answer which shall be posted in the google classroom as an example it will give you a short description of the chinese economy from the second world war until the present after the second world war communist party gained a lot of support in china with marsdon as the leader marshadong used propaganda to spread the ideas of communism and published the little read book to teach people about the communist philosophies as a result in 1958 most don't become a radical program called the great leap forward with the intention of increasing production in farms in factories so the communists grasped to increase production and made people with little noise or little to no experience try to farm to produce steel in their backyards but since they do not have or they have little experience to that their products were of poor quality making it useless and as a result there was a widespread famine in the area and an estimated 30 million people died of starvation while in 1981 when then shopping became the new leader of china he introduced the four modernizations program that is to make some changes in the chinese economy allowing some free enterprises meaning the government does control all aspects of the economy so this four modernizations includes farming industry science and defense this modernizations burst [Music] how china is today today china is a major economic power though it has one political party called the china's communist party meaning there is still no political freedom that's why in 1989 there are people who gathered in chairman square in china's capital to protest for their democracy however the government sent troops and punks and many were killed or wounded so there is still a need for human rights reforms in modern china china today is one of the world's greatest manufacturing countries even in our country we can find chinese products anywhere we can even find it in our own homes in our kitchen in our living rooms in our bedrooms even in our bags so while the economy is slowly changing there is not much room for political chains since there is only one political party allowed in the country