Philippine Politics MODULE 3
Philippine Politics MODULE 3
Philippine Politics MODULE 3
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For you to have a better understanding of the lesson presented
in this module, you should be familiar with the following terms:
1.
2.
3.
What is Socialism
Left-wing political system where the principle means of production, distri-
bution and exchange are in common ownership. In its early forms, socialism
was a reaction against the stark inequality and misery produced by the Indus-
trial Revolution and emerging capitalist economies, where those with property
had political voice but those without were open to exploitation and oppression.
Socialism is concerned with welfare of the people, and as such is concerned
with providing health care and education and the provision of other necessities
of a healthy life in order to create a more ‘level’ society.
Socialist ideals include production for use, rather than for profit; an equi-
table distribution of wealth and material resources among all people; no more
competitive buying and selling in the market; and free access to goods and ser-
vices. Or, as an old socialist slogan describes it, “from each according to ability,
to each according to need.” In a socialist economy, public officials control produc-
ers, consumers, savers, borrowers, and investors by taking over and regulating
trade, the flow of capital and other resources. In a free-market economy, trade is
conducted on a voluntary, or non-regulated, basis. Unlike communism, one of
the corner stones of socialism is to have the state own all capital and natural
resources within its sovereign territory. This means that the people being repre-
sented by the government will control everything and thus social classes would
be greatly undermined or eliminated together.
What is Socialism?
Left-wing political system where the principle means of production, distri-
bution and exchange are in common ownership. In its early forms, socialism
was a reaction against the stark inequality and misery produced by the Indus-
trial Revolution and emerging capitalist economies, where those with property
had political voice but those without were open to exploitation and oppression.
Socialism is concerned with welfare of the people, and as such is concerned
with providing health care and education and the provision of other necessities
of a healthy life in order to create a more ‘level’ society.
Socialist ideals include production for use, rather than for profit; an equi-
table distribution of wealth and material resources among all people; no more
competitive buying and selling in the market; and free access to goods and ser-
vices. Or, as an old socialist slogan describes it, “from each according to ability,
to each according to need.” In a socialist economy, public officials control produc-
ers, consumers, savers, borrowers, and investors by taking over and regulating
trade, the flow of capital and other resources. In a free-market economy, trade is
conducted on a voluntary, or non-regulated, basis. Unlike communism, one of
the corner stones of socialism is to have the state own all capital and natural
resources within its sovereign territory. This means that the people being repre-
sented by the government will control everything and thus social classes would
be greatly undermined or eliminated together.
What is Communism?
It is an economic, social and political doctrine that aims to replace private prop-
erty and a profit-based economy with public ownership and communal control
of at least the major means of production (e.g., mines, mills, and factories) and
the natural resources of a society. Communism is thus a form of socialism—a
higher and more advanced form, according to its advocates. As an extreme left-
wing ideology, based on the revolutionary socialist teachings of Karl Marx, it is
characterized by collective ownership and planned economy. Thus, each should
work to their capability and receive according to their needs. Communism is the
result of the process by which workers, the proletariat, overthrow the capitalist
and bourgeois masters and take control of the means of production. The pro-
ducers become the owner of the production.
What is Capitalism?
Capitalism is an economic system where private entities own the factors
of production. The four factors are entrepreneurship, capital goods, natural re-
sources, and labor. The owners of capital goods, natural resources, and entre-
preneurship exercise control through companies. Individuals own their labor.
Capitalistic ownership means owners control the factors of production and de-
rive their income from their ownership. That gives them the ability to operate
their companies efficiently. It also provides them with the incen-
tive to maximize profit.
Capitalism requires a free market economy to succeed. It distributes
goods and services according to the laws of supply and demand. The law
of demand says that when demand increases for a particular product, its
price rises. When competitors realize they can make a higher profit, they in-
crease production. The greater supply reduces prices to a level where only the
best competitors remain. The owners of supply compete against each other for
the highest profit. They sell their goods at the highest possible price while
keeping their costs as low as possible. Competition keeps prices moderate and
production efficient. Another component of capitalism is the free operation of
the capital markets. The laws of supply and demand set fair prices for stocks,
bonds, derivatives, currency, and commodities. Capital markets allow compa-
nies to raise funds to expand.
Capitalism results in the best products for the best prices because con-
sumers will pay more for what they want the most. Businesses provide what
customers want at the highest prices they’ll pay, and prices are kept low by
competition among businesses. They make their products as efficiently as pos-
sible to maximize profit. Capitalism ignores external costs, such as pollution
and climate change. This makes goods cheaper and more accessible in the
short
What is Liberalism?
A political doctrine that takes protecting and enhancing the freedom of the
individual to be the central problem of politics. Liberals typically believe that gov-
ernment is necessary to protect individuals from being harmed by others, but they
also recognize that government itself can pose a threat to liberty. As the rev-
olutionary American pamphleteer Thomas Paine expressed it in Common Sense
(1776), government is at best “a necessary evil.” Laws, judges, and police are
needed to secure the individual’s life and liberty, but their coercive power may
also be turned against him. The problem, then, is to devise a system that gives
government the power necessary to protect individual liberty but also prevents
those who govern from abusing that power. Underlying the liberal belief in
adversarial is the conviction that human beings are essentially rational crea-
tures capable of settling their political disputes through dialogue and compro-
mise.
It suggests that states are constantly interacting with each other and that
they value cooperation as part of their own interest. It further refers to the revival
of economic liberalism. It is connected with a belief in market fundamentalism-
the absolute faith in the market, reflecting the belief that the market mechanism
offers solutions to all economic and social problems.
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Prepared by:
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ROSITA B. ARSENUE
Master Teacher II