Economic Systems of Industrialization

ROUND 1

Capitalism GOAL: FREEDOM Economic system run by a free market All production (businesses) is privately owned Government does not regulate businesses People compete to get money, property People get freedom, but less equality

Capitalism Major principle of Capitalism: “Laissez faire” (leave alone) Economic policy of letting private businesses set working conditions and policies Government does not interfere

Capitalism Adam Smith - called “the father of Capitalism” Wrote “The Wealth of Nations” Law of self-interest – people work for their own good Law of competition – competition forces people to make a better product Law of supply and demand – in a free market, enough goods would be created to meet demand

How does this fit our game? Private ownership (students owned their candy) Freedom of competition (all played rock, paper, scissors) Results in unequal economic classes (some students won, most lost)

ROUND 2

Socialism GOAL: FAIRNESS Economic system in which goods are regulated by the government Higher taxes than Capitalism More public services for the people Concerned with fairness, ending poverty

How does this fit our game? Government ownership of industry (I collected candy) Goal is for economic equality (I redistributed evenly) Aims for a classless society (everyone has the same amount of candy)

ROUND 3

Communism GOAL: EQUALITY Economic system run by the people, where everything is shared equally Property shared by the community Businesses owned by the community People all get equal pay

Communism Karl Marx Industrial Revolution made rich richer, poor poorer Classes would eventually go to war People would rise up and create a system in which people shared all goods and services

How does this fit our game? Goal of classless society achieved (students refuse to play the game and opt to share candy) No government needed (I don’t need to supervise)

Differences between the economic systems Capitalism? Socialism? Communism?

Hold up a C for Capitalism, an S for Socialism and a COM for Communism….

Choose the economic system that fits Franz works all day in a factory making car tires. He would like to do something else, but this is the job he was assigned by the government. He doesn’t get paid much, but the government promises that he will always have a job and will provide the things he needs.

Choose the economic system that fits Erika was born in a poor family, raised by a single mother without a steady job. Through hard work in school, she was able to attend college and become a lawyer. She is now one of the most successful lawyers in New York, where she owns a fancy apartment and makes over $1 million a year.

Choose the economic system that fits Susan and John run a very successful store in their town but most of the money they make goes to the government in taxes. John was in a car accident, and he was badly hurt. He was able to get good medical care at a hospital without paying, and a nurse comes to check on him once a week, free of charge.

Capitalism vs. Socialism Continue to explore the differences Predict what types of people would have supported each

Utilitarianism Greatest good for the greatest number of people People should be free to pursue their own advantage without interference Pushed for progressive reforms

Labor Unions Working conditions changed during the I.R. People began to organize. They wanted: Better working conditions Higher wages Advocated for changes by threatening to strike

Reform Movements Workplace reforms Anti-slavery campaigns Child labor Better wages Safety Anti-slavery campaigns Women’s Movement Education and prison reforms