An Age of Reforms-New Economic Systems Get out your pink, yellow, and green highlighters As we go through the notes, add any important info I tell you in the lines to the right. Highlight according to the following key: People = pink Economic theories = green Social changes = yellow

1. Capitalism “free market economy” Money invested in businesses with the goal of making profit Adam Smith “Father of Capitalism” Wrote “The Wealth of Nations”

Laissez Faire “the Foundation of Capitalism” French for “let do” or “leave alone" Little government involvement

2. Socialism “command economy” Economic system where the factors of production… Are owned by the PUBLIC Operate for the welfare of ALL The government actively plans the economy.

3. Communism “command economy” A complete form of socialism in which the means of production would be owned by the PEOPLE. Karl Marx Father of Communism Wrote “The Communist Manifesto”.

Communism vs Capitalism Karl Marx Economy should be owned by the government Government controls all business and closely regulates economy (sets low prices, etc.) Eliminate competition between people Government determines job Everyone should have an equal share of the available wealth and property COMMAND ECONOMY Adam Smith Government should NOT interfere with economy (laissez-faire) Competition between businesses is good for the economy Everyone has the opportunity to succeed People are free to choose their own careers Money invested in business with the goal of making profit FREE MARKET ECONOMY

Reform Movement—Unions Unions- Workers joined together for reform Collective Bargaining- negotiations between workers and their employers Strike- refusal to work

Results Better Working Conditions like... Shortened work times for children Limited work day to 10 hours Better pay

Other Reform Movements William Wilberforce- fought for abolition of slavery, Britain abolished slavery in 1833