Essential Question: How did the political theories of socialism and communism reflect the changes brought about by the period of industrialization?

Capitalism Definition: A system in which a country's trade and industry are controlled by private owners for profit, rather than by the government (also known as “the state”). What is the idea? Survival of the fittest; if everyone is looking out for themselves, then everyone’s individual needs are met A small percent of the population controls almost all of the wealth, while the majority are middle or low class. Competition between sellers keeps prices fair.

What are the concerns with capitalism?

Concerns with Capitalism Large income gap: Very few extremely wealthy people and a large working class. Inequalities in earnings: Owner making millions while they pay their employees minimum wage. Society based off greed: Success and worth become defined by wealth. Assumes that being poor is always a result of being lazy Wealthy people become increasingly powerful - allowing them to make the rules. This can lead to no concern with issues such as the environment, human rights or social justice.

Socialism Definition – Members of society choose to live in a society in which everyone helps each other, making it equal. What is the idea? Government controls almost all businesses Replace competition with cooperation. Wealth goes to the person producing, instead of the owner of the business. Everyone agrees to work, which allows everyone in society to have what they need to live a good life. All jobs have equal opportunity for wealth, whether it be a doctor or a fast food employee People pay taxes to provide the government with the necessary resources to create this opportunity of equality. Those who make more money, pay a lot more in taxes to help those who make less. ( BY CHOICE) Socialism

Concerns with Socialism Too much government control in businesses and other parts of life. Promotes laziness in people: “Free-Loader Effect.” Decrease in productivity; less risk taking and innovation if there is little reward for taking chances. TAXES! People have to give a part (sometimes a large part) of their income to the government. People come to expect government help.

Communism Definition: A system in which ALL property is government owned, and the government provides everything for its people. What is the idea? Government has total control over almost all aspects of life: production, education, communication, money, food and property. People work and produce something that society needs without getting paid; money is not a significant part of a communist society. Government distributes everything so everyone can get a equal amounts in an efficient way. Everyone in society is exactly equal: same amount of wealth, quality of life, transportation, education, etc.

Concerns with Communism No monetary reward for working except for personal growth and the desire to help your country. Total reliance on the government to provide everything for all members of society. Complete loss of individuality in society.

A Tale of Two Cows Guess which system is described for each of the following Scenario: You have two cows… You keep one and sell the other to buy a bull. Your herd multiplies and the economy grows. The government takes both of the cows and provides you with milk. You give one cow to your neighbor who does not have a cow.