Lesson 6 – Capitalism, Socialism and Communism Agenda Learning Outcomes Short Lecture: Supply and Demand Introduce Project B: I can understand the differences between the three main economic systems that evolved during the Industrial Revolution. C: I can synthesize the various events and people of the IR into a short skit that showcases my understanding.

Supply and Demand (Capitalism) The backbone of Capitalism The idea started (more or less) with Adam Smith Where demand meets supply tells us how much of a product to produce and at what price. If the price is too high people will demand less of it. However if the price of a good is too low producers can’t afford to supply it. The markets balance This, in essence, is capitalism. Who does this system benefit most? Why? Examples: Fidget Spinners, Hover boards and Insulin

Socialism Socialism is, for the most part capitalism For Example: The market for bread is left up to supply and demand However, in a socialism system, the government steps in and regulates certain key markets: HEALTHCARE, HOUSING ETC What do you notice about the supply and demand graph to the right? How do you think consumers pay for healthcare in this system? Market for Healthcare

Communism All decisions, in all markets, are made by the government. What does a job in a communist country look like? Do you get a pay check? Everyone receives their “allocation” of goods. A committee gets together to decide just how much, OF EVERY CONSUMER AND PRODUCING ITEM, needs to be produced. Ball Bearing Example In your opinion, can communism work?

Project!  Actions Purpose Read the instructions silently Find your group based on your number Begin part 1. See learning outcome C