Economic Theories Chapter 1 - Section 4

Define: Three terms from Chapter 1 - Section 4 that you do not know the meaning of

Warm-Up Brainstorm: List 2 to 3 things that you know about each of the following - Capitalism, Socialism, and Communism

Why do we have economic systems? Governments need them for three key reasons What and how much to produce How goods and services should be produced Who gets the goods and services All economic systems answer these questions

Capitalism Pure Capitalism Based on the free market Private ownership and control of property and resources Free enterprise Competition among businesses Freedom of choice Possibility of profits Based on the free market Buyers and sellers can make unlimited economic choices Adam Smith writes The Wealth of Nations in 1776 Goverment should have no role in economics (laissez- faire)

America is NOT a purely capitalist country

Stop and Talk: What are ways that the American government tries to control the economy?

United States “Mixed Market” Government has increased involvement since the early 1900s Food and Drug Act Increased heavily during Great Depression Mixed Market Economy Combines free enterprise and government regulation

This is just one idea about how an economy should be run

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Throw Your Questions at Me We’ve talked about styles of government, the Constitution, why economic systems exist, capitalism, and begun to talk about Communism. Now - Write a question that you have about the content on a piece of index card. Ball it up when you finish and throw it at Ms. Roth!

Communism Karl Marx Look at the image on page 29 In Practice Wrote The Communist Manifesto in 1848 Believed that the capitalists (bourgeoisie) used force and the control of the means of production to control the workers (proletariat) Proletariat would revolt violently against the bourgeoisie Property would be held in common and government would fade away Look at the image on page 29 What does this tell us about the role of the worker in Communist countries? In Practice Government controls everything Land, resources, banks, transportation, communication systems Command economy because decisions are made at high levels and passed down

Think: Why would communism appear to be a better option than capitalism?

John Oliver Explains the Wage Gap https://www.youtube.com/watch?v=LfgSEwjAeno

Stop and Talk: Is there a middle ground between these two ideas?

Socialism Seen in most of Europe Government Role Two forms Owns means of production and plans the use of them Provides social services Medical care, retirement, education, etc… Two forms Some believed a revolution was necessary (USSR) Democratic Socialism People retain rights and freedoms Economic change is peaceful

The Point of Contention (Debate Topic) Capitalism is an overall better economic system than socialism

The Founder What aspects of capitalism are represented in this clip? Does this clip paint capitalism in a positive or a negative light? How?

Sicko “Life in France” What aspects of socialism are represented in this clip? Does this clip paint socialism in a positive or a negative light? How?

Boiler Room What aspects of capitalism are represented in this clip? Does this clip paint capitalism in a positive or a negative light? How?

How’s Socialism Doing in Venezuela What aspects of socialism are represented in this clip? Does this clip paint socialism in a positive or a negative light? How?