Economic Systems Students analyze the emergence of capitalism as a dominant economic pattern and the responses to it, including Utopianism, Social Democracy, Socialism, and Communism.

Warm Up: Name and explain all the different types of government we have learned this semester. Standard  Students analyze the emergence of capitalism as a dominant economic pattern and the responses to it, including Utopianism, Social Democracy, Socialism, and Communism. Objective  I will be able to compare the different types of economic systems from one another through a simulation and construct a new country’s government and economic system in the form of a poster.

Simulation Rules!  DO NOT eat the M&M’s until told to do so. Failure to follow this direction will result in the 0 for the activity and immediate banishment from the activity. NO EXCEPTIONS.  Follow the rules as best as possible and be sure to write down what is happening.  You will need colors to draw which colors you have as accurately as possible.  Count the number of total M&M’s you have an put them at the top of your paper.  After each round, put them back in the middle.

Simulation 1  Students will divide the M&M’s as evenly as possible. Your goal is to try to make the maximum happiness among your table with the minimum amount of complaining. Color does not matter.  In your situation chart, explain what happened if there was an uneven amount. How did you decide who got it?  Record the number of M&M’s you have.

Simulation 2  Students are to get 3 of each color. Once you have finished dividing 3 of each color, divide up the remaining M&M’s among the group. If everyone does not get three of each color, raise your hand and it will be provided for you. If you cannot find a way to divide it, you may give it back to the teacher.  Explain how you decided to break up the remaining M&M’s up after you each received 3 of each color.  Once you have finished, record the number of M&M’s you have.

Simulation 3  Students are to get the same number of each color. All remainder shall be set aside. If you do not have enough to get the same of each color, raise your hand and they will be provided or remove them to the middle pile (depending on number).  In your situation box discuss is it fair to have some of your M&M’s taken away to give to others if they did not have enough?  Record the number of M&M’s you have.

Copy This!  In the box for simulation 4, write the following colors and what they represent:  Red – Housing and Apartments  Orange – Health Insurance  Blue – Public Safety (Police and Firemen)  Brown - Employment  Yellow - Food and Water  Green - Education

Simulation 4  Students are to choose one color and receive all of that color. Every student should have a different color.  Record the number of M&M’s you have.

Simulation 5  Students are given a choice to divide the M&M’s up in any way they see fit. There are no rules, it is up to the table to come to an agreement on how they want to divide up the M&M’s. If no agreement can be made, the teacher will take all M&M’s. You have 2 minutes  Write how you as a table decided to split up the M&M’s in the end  Record the number of M&M’s you have.

Simulation End!  As a table, find a way to distribute the M&M’s using one of the economic systems we discussed.  Once you have come to an agreement, raise your hand.  Before you can eat the M&M’s, you must get approval from Mr. Luyau.  Star the simulation which you chose to model your final M&M’s division after  If you are approved, you may eat your M&M’s.

Notes!  Be sure to pay attention, the explanation of what each system does will be explained and not written on the PowerPoint!

Utopia!  Robert Owen  Wanted to improved the working conditions of his workers  Shocked by the misery and the poverty of the working class  Created New Harmony in 1825  Created a Utopia (a perfect place)  Believed that everyone had 1 job and that they were responsible to do it.  Failed after 3 years

Utilitarianism!  Created by Jeremy Bentham in the late 1700’s  Believed people should judge ideas, institutions, and actions on their usefulness (Utility).  “Greatest good for the greatest amount of people”  Individual should be free to pursue his or her own advantage without interference from government  Improved upon by John Stuart Mill in the 1800’s  Wanted more equal division of profits  Wanted a more cooperative system  Called for government to do away with difference sin wealth

Laissez-Faire Economics (Capitalism)  Created by Adam Smith in his 1776 book titled Wealth of Nations.  Believed that government should not interfere (laissez-faire in French means “hands off”)  Believed in 3 laws of economics  Law of self interest  Law of competition  Law of supply and demand  This is the foundation for capitalism

Socialism!  Created by Charles Fourier and Saint-Simon  Wanted to change the ill effects of industrialization (poor working conditions)  Believed in the production is owned by the public and welfare for all people  Government needs to plan the economy rather than to leave its hands off (Lassiez-faire economics)  Believed that this would end poverty and help workers who were at the mercy of their employers

Communism!  Founded by Karl Marx and Friedrich Engels who wrote The Communist Manifesto (written in 1848)  Believed that there have always been two classes who are in constant war  The wealth – controlled all producing goods  The poor – performed backbreaking labor under terrible conditions  Believed that the capitalist system would destroy itself by driving small artisans out of business  Wanted the economy to be controlled purely by the people (all public property, none to the private)  Believed that all goods and services should be shared equally