Quick Review!!! QUIZ FRIDAY!!! List inventions during the Industrial Revolution. Where did the IR begin? Who helped to unify Prussia and eventually Germany? What were some effects of the Agricultural Revolution?

Many will enter…only 1 will be crowned CHAMPION of the WORLD!!!!!! Rock. Paper. Scissors. Many will enter…only 1 will be crowned CHAMPION of the WORLD!!!!!!

Communism Vs Capitalism Opposing economic theories Differences magnified during the Industrial Revolution Inspired governmental and political rivalries throughout the world

WRITE DOWN EVERYTHING THAT IS UNDERLINED

Communism “An economic system in which all parts of production – land, factories, railroads, and businesses – are owned by the people: private property does not exist, and all goods and services are shared equally”

Karl Marx Wrote “The Communist Manifesto”1848 Radical Socialism Predicted that the workers would someday REVOLT against the wealthy Capitalism would destroy itself

AKA—Marxism POSITIVE— NEGATIVE— Eventually a complete form of Socialism would arise Total public ownership of means of production What makes it work?? No private Property A classless society POSITIVE— NEGATIVE—

Countries claiming to be communist between 1979-1983

Communist countries 2012 China, Cuba, Cambodia, Laos, Vietnam, and North Korea

Communism today Before, Communism meant public ownership of all or most means of production by the Communist party-run state, is necessary for the possibility to further the interest of the working class; today, a communist state, as in China and Vietnam for instance, can exist alongside a mixed economy.

Capitalism “One million dollars!” “An economic system in which money is invested (capital)with the goal of making more money (profit).” “One million dollars!”

Adam Smith The Wealth of Nations - 1776 Free-market Capitalism An “invisible hand” would guide the economy Laissez-faire – gov’t should be hands-off

POSITIVE— NEGATIVE— What makes it work? Opportunity for profit Private property POSITIVE— NEGATIVE—

Do you think the cartoonist supports communism OR free market capitalism? The bourgeoisie, business owners, look bad in this cartoon, but what might you say to defend them?

Example Test Question:   Laissez- faire economics stemmed from French economic philosophers of the Enlightenment. The term laissez faire refers to the economic policy of a. Demanding all industry and business be government-owned and operated b. Allowing for strong government involvement in the setting of working conditions for industry and business. C. Letting owners of industry and business set working conditions without government interference d. Requiring that owners of industry and business not set any working conditions

The Industrial Revolution IR is driven by Capitalism Inequities created by IR create an ideological GAP btwn CAP & COMM