Regents Review Economies

Traditional People produce what they need to survive. Economy based on “past practice” Mostly agrarian (farmers) Also hunting, gathering and herding cattle.

Example For thousands of years most cultures had a traditional economy. Make their own clothing and tools. Hunt for food they eat.

Manorialism Manors are self-sufficient- produce food, clothing and shelter. Serfs give up part of harvest to the lord in exchange for land. In exchange the lord protects the serfs.

Example Europe during the Middle Ages. Lord had complete control over serfs who lived on the manor.

Capitalism (Market) Laissez faire (hands off) Entrepreneur- owner of business (free enterprise). Workers work for wages (profit motive) Competition Supply and demand

Example Adam Smith- Wealth of Nations Britain during the Industrial Revolution developed a capitalist system.

Imperialism/ mercantilism Colony provides raw materials to the mother country. Mother country makes a finished product and sells it back to the colony. Exploits the colony.

Example Spain did this in Latin America Gained tremendous wealth in gold and taxes from Latin America.

Communism Karl Marx- Communist Manifesto & Das Kapital Class struggle between the haves (bourgeoisie) and the have nots (proletariat) Classless society Equal pay Government ownership of everything.

Example USSR Communist Revolution. Lenin- although Lenin introduces elements of capitalism –NEP China under Mao