Comparison of the Economic Systems that Developed During the Industrial Revolution The New “Ism’s”

Pair-Share “Capitalism and communism stand at opposite poles. Their essential difference is this: The communist, seeing the rich man and his fine home, says: 'No man should have so much.' The capitalist, seeing the same thing, says: 'All men should have so much.'”Capitalism and communism stand at opposite poles. Their essential difference is this: The communist, seeing the rich man and his fine home, says: 'No man should have so much.' The capitalist, seeing the same thing, says: 'All men should have so much.' By reading the quote above, what do you think is the major difference between Communism and Capitalism?

Standard CA Analyze the emergence of capitalism as a dominant economic pattern and the responses to it, including Utopianism, Social Democracy, Socialism, and Communism.

Objective Students will be able compare and contrast the different economic systems that developed in response to the Industrial Revolution.

Apples What would you do with the wealth of the world? Opening Activity

Rules Apples represent the wealth of the world You and your group are in charge of the wealth of the world. You must decide how to distribute the apples.

Options Divide them equally Give them to the most needy Sell them to make more money Give them to the people who will use it for the best

Each Bag Represented A Type of Government Divide them equally Give them to the most needy Sell them to make more money Give them to the people who will use it for the best communism socialism capitalism utilitarianism

Economic System System of production (to make) and distribution (to pass out) and consumption (to receive)

Activity Instructions 1. Get with a partner. Sit side-by- side. 2. Read aloud, The Four Economic Systems that Stemmed from Industrialization & your textbook. 3. Complete the worksheet: The Four “Ism’s”

Economic Systems Review

Capitalism: An economic system in which entrepreneurs take a risk in business to make a profit. Competition must exist. Author: Adam Smith Governments Role: –Should not interfere with the economy or Wealth of Nations –businesses Basic Ideas –Make money based upon businesses –Businesses should be owned by individuals –Laissez faire - economic policy of letting owners of industry and business set working conditions without interference Examples –Ben & Jerry’s ice cream shop –Apple –Disneyland

Utilitarianism Author: Jeremy Bentham & John Stuart Mill Governments Role: –Government should promote the greatest good for the greatest # of people Basic Ideas –Everything should be judged upon the usefulness –Good = happiness –Bad = pain Example –Dropping a nuclear bomb to end a war –Killing for self-defense

Socialism: An economic system in which the factors of production are owned by the public and operate for the welfare of all. Author: Charles Fourier & Saint-Simon Governments Role: –Control SOME industry (factories), which would ensure equality and get rid of poverty Basic Ideas –Factories are owned by the people and run for the good of all –Protect the poor from greedy factory owners Examples –Public school –Soup kitchen –Welfare –Yosemite national park

Communism : An economic system in which the means of production is owned by the government. Private property does not exist. The goal is a classless society. Author: Karl Marx –Communist Manifesto Governments Role: –At first “dictatorship of the people” –Fade away, people would share everything Basic Ideas –Believed workers would take over & share work & profits –Create a classless society –Everyone would be equal –All would be owned by the people & there would be no need for government Examples –Siblings in a family

Wrap-Up Discussion What do you think the author meant when he wrote the following quotes about communism? “Communism is in conflict with human nature.” Ernest RenanCommunism is in conflict with human nature. Ernest Renan “Communism possesses a language which every people can understand - its elements are hunger, envy, and death” Heinrich HeineCommunism possesses a language which every people can understand - its elements are hunger, envy, and death Heinrich Heine “Communism is like Prohibition, it's a good idea but it won't work” Will RogersCommunism is like Prohibition, it's a good idea but it won't work Will Rogers

Wrap-Up Discussion What do you think the author meant when he wrote the following quotes about communism? “Capitalism is Man Exploiting Man; Communism is just the opposite” Eastern ProverbCapitalism is Man Exploiting Man; Communism is just the opposite “What kind of society isn't structured on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm; capitalism is that kind of a system ” Milton FriedmanWhat kind of society isn't structured on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm; capitalism is that kind of a systemMilton Friedman “Capitalism is what people do if you leave them alone” Kenneth MinogueCapitalism is what people do if you leave them alone Kenneth Minogue