Bell Activity October 16, 2017 What brothers built the first airplane? You know the routine What brothers built the first airplane? Who invented the first usable lightbulb? In one sentence describe what you did on fall break.

Today’s Agenda October 16, 2017 Continue Industrial Revolution unit Standards and Objectives Vocabulary Review Economic systems Economic Thinkers Rise of the middle class

Standards and Objectives October 16, 2017 Standards and Objectives Unit: Industrial Revolution, 1750-1914 Standard W.11 – Analyze the emergence of capitalism as a dominant economic pattern and the responses to it, including Utopianism, Social Democracy, Socialism and Communism, Adam Smith, Robert Owen, and Karl Marx. Objectives: I can analyze the emergence of capitalism. I can discuss the responses to capitalism including Socialism and Communism. I can discuss Adam Smith, Robert, Owen, and Karl Marx.

Vocabulary October 16, 2017 For the vocabulary tab in your binder Capitalism – economic system where trade and industry are privately controlled for profit. Socialism - political theory that all aspects of business should be owned by the community. Communism – theory advocated by Karl Marx in which all property is publicly owned and there is class war.

Recap (Do Not Write) October 16, 2017 Reforms lead to better conditions in factories. Assembly line allows for faster production of goods. Reforms give more people the right to vote. William Wilberforce advocates for ending the slave trade in England.

Adam Smith and Capitalism October 16, 2017 Adam Smith and Capitalism Writes, The Wealth of Nations, in 1776. Argues that business should take place in a free market. Believed in laissez-faire economics. System that worked without government regulation. Believed supply and demand working freely would make stronger economy. Smith was going against old model of no competition. Smith advocated a market economy. Businesses can compete against each other. Competition spurs innovation.

Capitalism at Work October 16, 2017 Rise of the entrepreneur. They started businesses and some became extremely wealthy. With advances in technology there was a demand for oil, steel, railroads, and financing. Andrew Carnegie – Carnegie Steel John D. Rockefeller – Standard Oil Cornelius Vanderbilt – Railroads JP Morgan – Financing Accumulated large amounts of wealth. Used the free market to wipe out their competitors and create monopolies. Methods were not always popular.

Different Economic Views October 16, 2017 Different Economic Views Some blamed capitalism for: Gap between rich and poor. Poor factory conditions. Two writers looked at different economic systems. Robert Owens Government should own the property and control industry. Theory called socialism Created utopias based on his theory. Set up communities that provided ideal conditions. Good working conditions Decent housing Free education for kids.

Karl Marx October 16, 2017 Marx was a German writer. More radical version of socialism. Wanted workers to seize means of production. Capitalism would collapse. Workers would establish a society based on cooperation and equal distribution of wealth. He wrote Das Kapital in 1867. Made arguments against capitalism. Connection between work and pay. Workers would have to control government. Command economy would result. This system of government controlling the economy would become communism.

Capitalism and Socialism Differences October 16, 2017 Capitalism and Socialism Differences Capitalism Individuals or corporations control the means of production. Allows for innovation and competition. You do not change you will be out of business. (Watch video on Blockbuster Video) Extreme wealth can be achieved. Market dictates what will be produced. Socialism/Communism Government controls the means of production. Little innovation or change Government is not going to compete against itself. Wealth is distributed fairly. Government dictates what is produced.

Rise of the Middle Class October 16, 2017 Rise of the Middle Class Industrial Revolution brought a new economic class. Middle Class were workers in middle income range. Increased profits from manufacturing led to an increased middle class. Were between factory owners and poor factory workers. Middle managers, accountants, engineers, mechanics, etc…were occupations of the middle class. Standard of living for people improved. Material comforts were now attainable to people in the middle class. Able to enjoy leisure time.