Widened gap between rich and poor- leads to economic changes! Mr. Connors Economic Reform Widened gap between rich and poor- leads to economic changes!

Economic Reform Capitalism: The “pro-business” economic system Based on “laissez-faire” economics- let the people do as they please. Owners set working conditions, and wages- free market system with… NO GOVERNMENT INTERFERENCE!!!!

Adam Smith- Capitalism Defends free market (Capitalism): The Wealth of Nations Three Natural Laws of Economics: Self-interest Competition Supply and demand: produce goods at low price to meet demand! Birth of capitalism: F.O.P. are privately owned- money is invested in business ventures for a profit! (Basis for I.R.)

Capitalism Oppose government interference No minimum wage No improvement in working conditions Change these things- NO WEALTH!

Capitalist society during the I.R. Wealthy Elite- 5% of population; 30-40% of wealth I. M. C.- factory owners; will become part of wealthy elite  money!! I.W.C.-factory workers, farmers; 80% of population

Response to Capitalism Theorists believe that the wealthy or the government SHOULD intervene!!

Utilitarianism UTILITARIANSIM- base importance of things on usefulness, government- promote greatest good for greatest number of people! Call for government to do away with differences in wealth! TRY TO MAKE SOCIETY MORE EQUAL!!!

Socialism F.O.P. are “publicly” owned (government)- operate for the welfare of all. Government planned economy- control of key industries helps end poverty, create equality Relieve workers of harsh employers Promote right to vote! Use Labor Unions to achieve the goal! Can have private property

Karl Marx Radical Socialism

Marxism The Communist Manifesto- outlines Marxist ideas (written by Marx, and Friedrich Engels )- 1848 Society built on warring classes: “ haves”- bourgeoisie “have-nots”- the working class (proletariat) Wealthy control F.O.P./ Poor are slave-laborers for them

From Radical Socialism Communism Karl Marx – Idea for the Future

Marxism  Communism Revolution occurs: workers will overthrow rich- DICTATORSHIP OF PROLETARIAT Believed capitalism would destroy itself- bring equality-CREATE A CLASSLESS SOCIETY! All would be shared equally! No job too small! Government no longer needed Hopes to achieve PURE COMMUNISM…

Pure Communism Complete socialism ALL means of production would be owned and controlled by the people. Private property would NOT exist. All goods and services would be shared equally. Marxist ideas influence Lenin (Russia), Mao Zedong (China), Fidel Castro (Cuba)

Pure Communism Doesn’t work- economic forces are not the only thing that dominates society. Gap between rich and poor does not happen the way Engles and Marx thought. Society is not effected by economics alone!