How is economics related to the Industrial Revolution?

Slides:



Advertisements
Similar presentations
ROCK PAPER SCISSORS.
Advertisements

TWO MAIN SYSTEMS OF GOVERNMENT.  Adam Smith Adam Smith  Wrote the Wealth of Nations  “Liberty guarantees economic progress, therefore government shouldn’t.
Economic Systems. How Does An Economy Work? Nations must answer 3 basic Economic question: What goods and services should be produced? How should the.
Capitalism, Socialism, and Communism
Capitalism, Socialism, and Communism. Capitalism “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but.
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” 1.Do.
Socialism and Communism. Differences between Capitalism and Socialism In capitalism goods and services are distributed by private businesses People are.
Economic Systems Capitalism, Socialism & Communism
Capitalism, Communism, and Socialism Mark Manbeck
Capitalism, Socialism & Communism Comparison Activity
Chapter 2 Economic Systems.
New ideas in society. Rock, paper, scissors activity.
The Political and Economic Theories of Capitalism and Socialism With emphasis on Adam Smith and Karl Marx.
Economics of the Industrial Revolution. The Industrial Revolution opened a wide gap between the rich and the poor. While business leaders believed the.
Reforming the Industrial World. Agenda 1. DNA- Vocabulary Match-up 2. Notes: Economic Systems 3. Drawing Economic Systems.
Traditional, Command, Market, and Mixed economies
The Rise of the Industrial “Class” and a New Way of Thinking.
UNIT 5 THE AGE OF REVOLUTIONS Lesson 5 Capitalism vs. Socialism.
Aim: In what ways do Communism and Capitalism Differ?
Economics  What?  How?  Who?. Economic System:  A particular set of social institutions which deals with the production, distribution and consumption.
Reaction and Reform: New Economic Theories
What is economics? The study of how goods and services are produced, distributed, and consumed. The people who make goods or services are called “producers.”
Introduction to Business, Economic Resources and SystemsSlide 1 of 60 Making Decisions About Production No society has enough productive resources available.
Modern World History November 29,  Economic system based on private ownership and on investment of money in order to make a profit  Each business.
Economics of the Industrial Revolution. Problems of Industrial Revolution  Time to look for solutions! Some believed the market would fix the problems.
Reaction and Reform: New Economic Theories World History - Libertyville HS.
Industrial Revolution Philosophers New economic ideas.
Economic Theories Economics: A study of human efforts to satisfy seemingly unlimited wants through the use of limited resources. Resources include both.
Types of Economies. Traditional Economy ► It is based on agriculture, fishing, hunting, gathering or some combination of the above. ► It is guided by.
Capitalism, Socialism, and Communism. Capitalism “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but.
Economic Systems Capitalism, Socialism & Communism Liberty or Equality?
Political Systems and Economic Systems. Political Systems Countries can have a variety of political systems. They include:  Direct Democracy  Representative.
ECONOMIC SYSTEMS OF GOVERNMENT CAPITALISM, SOCIALISM, AND COMMUNISM (OBJ.7)
ECONOMICS. WHAT IS ECONOMICS?  THE STUDY OF HOW INDIVIDUALS AND NATIONS MAKE CHOICES ABOUT HOW TO USE RESOURCES TO FULFILL THEIR WANTS AND NEEDS.
Economic Systems “The ISMS”
GOVERNMENT ECONOMIC SYSTEMS. WHAT IS ECONOMICS? The study of how goods and services are produced, distributed, and consumed. The people who make goods.
Industrial Revolution Economic and Social Changes.
Mr. Bestor US Government. Political Systems Countries can have a variety of political systems. They include: Direct Democracy Representative Government.
Capitalism, Socialism, and Communism
The problems caused by the Industrial Revolution caused many to look for solutions. While some believed the market would eventually fix the problems, others.
19th Century Economics edit from same title by WBPhillips.
Competing Philosophies of the Industrial Revolution.
Capitalism and Socialism Or Free Market System and Command Economies.
Which is better? Capitalism or Communism? Sarah Wittrock.
Economic Systems Market, Command and Traditional.
Reforming the Industrial World. Capitalism An economic system in which businesses and industry are privately owned and money is invested in business to.
ESSENTIAL QUESTION EQ: How are Free Market Capitalist economies and Command, Communist economies alike, and how are they different? E. Napp.
Differences between Capitalism and Socialism In capitalism goods and services are distributed by private businesses People are allowed to strive and obtain.
Economic Systems Economic Systems Compare different types of economic systems: traditional, free enterprise, command and mixed. Compare different types.
Essential Question: How did the political theories of socialism and communism reflect the changes brought about by the period of industrialization?
Economic Systems U.S. GOVERNMENT CLASS – UNIT 1. The Role of Economic Systems  Governments around the world must make economic decisions that include:
Economic system. Economic systems The method a government uses to ensure the people are able to obtain the things they need and want. Deals with the production.
Communism, Socialism and Capitalism What’s the difference?
Economics of Industrial Rev. Capitalism vs. Socialism [Marxism]
Capitalism, Socialism, and Communism
Charlie Chaplin Modern Times
Economic Systems Capitalism, Socialism & Communism
Economic systems.
Writing Assignment minimum 1 page
Capitalism, Socialism, and Communism
“ism’s” in the hiz-isms-ouse!
Three Economic Systems
Economic Systems.
Free Enterprise System, Socialism, & Communism
Economic Systems Capitalism, Socialism & Communism
Capitalism & Socialism
Capitalism & Socialism
New ideas in society.
Economic Systems Capitalism, Socialism & Communism
Presentation transcript:

How is economics related to the Industrial Revolution?

What is economics? The study of how goods and services are produced, distributed, and consumed. The people who make goods or services are called “producers.” The people who buy goods or services are called “consumers.”

There are 3 types of economic systems: Capitalism Communism Socialism

Capitalism Sometimes called a “market economy.” Ex. U.S.A. People own companies and decide what to produce to make consumers happy. Business owners can earn big profits or can lose their money if a business fails. Some businesses sell stock to get more capital to invest. Pure capitalism’s original ideas included laissez faire (“hands-off” government) economics Adam Smith’s ideas in the Wealth of Nations are usually taken as the beginning of capitalist ideas. New York Stock Exchange

Communism and Socialism The government makes economic decisions about what should be produced, how much it should cost. Two types of command economies are socialism and communism. The original purpose of both socialism and communism was to create a more equal distribution of wealth by eliminating private property and private ownership of business and industry. These systems were developed in response to the observed injustices of factory owners during the Industrial Revolution. Karl Marx and Friedrich Engels are considered to be the fathers of Communism. They wrote in the Communist Manifesto about how the working class (proletariat) would eventually overthrow the bourgeoisie (wealthy factory owners) Workers arrive at a factory in the old Soviet Union in 1929.

In socialism, the government runs some industries, such as oil, and uses profits to pay for health care, education. Ex. Venezuela In communism, the government runs all industries, owns all property, sets wages, and prices, and people must do as they are told. Ex. North Korea Venezuela’s former President Hugo Chavez

Communism vs. Capitalism Capitalists say that people have no reason to do a good job in communism because everyone gets the same pay. Products are boring and poorly made. Communists say that capitalism is unfair to the poor because people at the top of the company get rich while workers get low wages. They also say capitalists wipe out little companies and destroy the environment to get money.

Continuum of Economic Systems Command Economy Communism On the far left Market Economy Capitalism On the far right Socialism Left of center but right of communism

Which economic system would be described as the following: "You have two cows. The government takes one of your cows and gives it to your neighbor"

Socialism. While there are many definitions and varieties of socialism, one of the key concepts seems always to be the premise that government should regulate the distribution of goods produced by the people. Some socialists would even argue that government should regulate the very means of production as well. The goal is usually a society in which all its members have a balanced and equal opportunity to survive.

Which economic system could be explained by the following: "You own two cows. The government takes both of your cows, gives you some of the milk, and shares the remainder with the rest of your neighbors.”

Communism. Communism in its purist form is the existence of a moneyless and classless society in which all of society's members share everything in common, including all means of production. Obviously, such a system would rely on an innate goodness of mankind. The analogy in the question jokingly explains why such a system most likely will fail. Most people would be too selfish to comply so that the government would have to interfere to force compliance.

How would you explain capitalism using the cow analogy? Remember: Capitalism as an economic system not only adheres to the concept of private ownership of the means of production (owning the cows) but also to the concept of private profit, meaning that the individual who owns the means of production has the freedom to use that means to increase his or her accumulation of wealth Finish this sentence to describe capitalism: "You own 2 cows…

"You have two cows. You sell one of them and buy a bull“ (selling of one cow to buy a bull to produce more cows to produce more milk)