Capitalism Vs. Communism Macdonald World History

Rock, Paper, Scissors Rules: Winner gets one paper clip from partner Need at minimum ONE paper clip to stay alive More = better

ROUND 1

How did you feel at the start of the game? Do you think this game is fair? Why or why not? State your reasons. Now that the game is over, what action could the teacher take, if any, to make the game fair? Should the teacher take such an action? Why or Why not?

ROUND 2

How did you feel at the start of the game? Do you think this game is fair? Why or why not? State your reasons. Now that the game is over, what action could the teacher take, if any, to make the game fair? Should the teacher take such an action? Why or Why not?

Economic Systems Capitalism Communism

Capitalism Economic system based on ppl investing money in business w/ goal of making profit Adam Smith wrote Wealth of Nations to support capitalism Depends on laissez faire (without gov’t interference) policies

Capitalistic Beliefs Opposed gov’t efforts to help poor Believed these would lower profits & upset market No minimum wage No unemployment No laws about working conditions, working ages

Communism Many ppl believed capitalism & industrialization caused many problems in society & would cause revolutions of workers Karl Marx & Freidrich Engels wrote Communist Manifesto that outline beliefs and became basis of Communism

Communist Manifesto Societies always divided into two warring classes – workers (proletariat) & owners (bourgeoisie / capitalists) Industrial Revolution made rich richer & poor worse off More proletariat than bourgeoisie, so eventually proletariat would join together and overthrow the bourgeoisie

Communism Result would be a “dictatorship of the proletariat” where the working class takes control They would share all property, including factories, housing, profits, etc. equally This final phase of community property & sharing of profits would be called communism

Communist Beliefs In practice, usually communist gov’ts have state controlled businesses Gov’t makes all economic decisions, not individual ppl

Reality Today there are NO true capitalistic societies as well as NO true communist societies. Most capitalistic societies have programs to aid people in need Most communist societies are in reality dictatorships that restrict the rights of people

DCT Write a paragraph explaining positives and negatives of both capitalism and communism.

Laws of Economics Based on Smith’s laws of economics: Self-interest (ppl work for own good) Competition (forces ppl to make better product) Supply & demand (ensure correct amount of goods)