Capitalism vs. Communism Unit 7 – Ms. Doyle

Page 3: Capitalism vs. Communism WARM UP Make a t-chart in your notes of the pros and cons of industrialization. Be prepared to share! Agenda: Warm Up – T-Chart Notes Practice Problems Organize binders Homework: Document test next class & Binders due!

Democracy & Capitalism Natural Rights: life, liberty, pursuit of happiness (human rights) Bill of Rights maintains natural rights Economic Freedom Elected Officials Informed Society Citizen Participation VOTE! Limited government All citizens are valued equally Sovereignty Majority rules Many viewpoints Direct republic Vote for officials Goods People buy things and sell for a profit Free market = competition Supply and demand Supply: the quantity of the available product Demand: quantity of the product that people need at a specific price Class division Working class paid with wages and salaries Capitalist class makes profit from what working class produces

Communism Communism believes in “equality” everyone is on the same level Money is taken from the rich and given to the poor so everyone is equal Government controls all aspects of production. Government tells what to produce, how much, by when, and who will produce it. Under Communism, no one owns their own business. Father of Communism is Karl Marx

Communism Karl Marx wrote the Communist Manifesto Communism is also known as “Marxism” Karl Marx believed in a classless society (no rich, no poor) He wanted the government to control all means of production. He believed this would lead to utopia.

I grew 3 apples, the government took those apples, gave one to me and one to each of my two neighbors. _________________ Your small business hit a rough patch and you lost all of your money. You have to close the business and find a job elsewhere. _________________ I make $20,000 a year, so does the heart surgeon who lives down the street from me. _________________ I go to Zehrs Foods and buy whatever groceries I want to buy. _______________ I only make $20,000 a year, but the teacher who lives down the street from me won the lottery and made 30 million in one day. __________________

6. Your small business hit a rough patch and lost all of its money, you are still given your salary and may have a chance to get the business back on its feet. ___________________ 7.I go to the grocery store and buy the same goods as everyone else in the store. _________________ 8.I have a great idea to improve computers, I will call it “Microsoft” and will sell it to millions of people and become one of the richest people in the world. _________________ 9.I have a great idea to improve computers, I will call it “Microsoft.” The government will take my idea and make sure that I receive the same amount of money for my work as every other person. __________________ 10. I am a talented basketball player (seriously, NBA quality), I am going to go professional and make millions of dollars a year. __________________