Get out reading-T Chart from yesterday February 25, 2016 Get out reading-T Chart from yesterday

Industrial Revolutions sparks new ways of thinking Business leaders wanted less government intervention Workers wanted more rights Reformers wanted more government regulation

Capitalism Capitalism: factors of production are privately owned Goal is to make a profit Don’t believe in helping poor workers because it would hurt the free market

Capitalism Based on laissez-faire economics Adam Smith “let people do as they please” Natural laws would promote economic growth Adam Smith Believed in free markets and free economy Wrote “The Wealth of Nations” Based beliefs on three natural laws

Three Natural Laws Law of self-interest Law of competition People work for their own good Law of competition Competition forces people to make a better product Law of the “invisible hand” Everyone working in own self interest will promote efficiency Enough goods will be produced at the lowest price possible to meet demand in a market economy

Socialism Socialism: Born out of resentment of workers of growing class and wealth divide Workers revolt and take over factors of production Creates government whose goal is to benefit all Govt. intervention in economy Opposed to laissez-faire

Marxism Radical form of socialism Coined by Karl Marx and Friedrich Engels in 1848 Argued the Industrial Revolution had enriched the wealthy and impoverished the poor Society was divided into “warring classes” of “haves” and “have nots”

Communist Manifesto Pamphlet written by Marx and Engels Wealthy controlled the means of production while workers performed the labor They argued the workers(proletariat) will unite and overthrow the wealth factory owners (bourgeoisie)

Communist Manifesto Prediction: Large corporations would buy up small factories and control all the wealth Workers would revolt, seize factories, and produce necessary goods Workers would spread wealth equally (beginnings of socialism) Workers would control the government Government would slowly diminish The country would be ruled by a classless society Finally, communism

Misunderstand human motives and unrealistic Revolution never happens Problems? Misunderstand human motives and unrealistic Revolution never happens 2) Totalitarian one party rule emerge instead 3) Command Economies fail lacks incentive and competition