Capitalism vs. socialism Friday, January 18, 2019

‘Laissez-faire’ capitalism All factors of production were privately owned No government control Adam Smith : Wrote about Capitalism in his book “The Wealth of Nations” = Supply & Demand

‘Laissez-faire’ capitalism They believed if government stayed out of the economy and let businesses compete, it would lead to more prosperity and a better society WHO believed this? Middle-class businesspeople

Socialism Believed that factories, capital, land, and raw materials should be owned and controlled by society, through the government They wanted the government to plan the economy to promote equality

Socialism Karl Marx and Friedrich Engels Wrote “The Communist Manifesto” The proletariats (workers) were oppressed an should overthrow the bourgeoisie ‘Working men of all countries, unite!’ Was There communist SLOGAN-

Rise of labor unions and reform laws Workers began to form trade unions An association of workers with the same skill They used strikes, refusal to work, to demand better wages, benefits and working conditions

Rise of labor unions and reform laws 1830’s – British Parliament began regulating mine and factory conditions for women and children Children under 9 could not work Children could not work at night Children could only work 12 hours a day Eventually children & women could not work in mines