1. Socialism V. Industrialization Also….a few terms I’D Know!

2. Laissez Faire The economic policy of allowing owners of industry and business set working conditions WITHOUT any government interference. The economic policy of allowing owners of industry and business set working conditions WITHOUT any government interference. “Let the People Do As They Please” “Let the People Do As They Please”

3. Capitalism An economic theory where the factors of production are PRIVATELY owned and money is invested in business ventures to make a profit An economic theory where the factors of production are PRIVATELY owned and money is invested in business ventures to make a profit

4. Socialism Economic system where the factors of production are owned PUBLICLY Economic system where the factors of production are owned PUBLICLY It grew out of a concern for progress and SOCIAL justice It grew out of a concern for progress and SOCIAL justice They argued that if the government controlled the economy they could end poverty and unemployment They argued that if the government controlled the economy they could end poverty and unemployment

5. Karl Marx

6. Marx Developed a RADICAL form of socialism which would be referred to as “Marxism” Developed a RADICAL form of socialism which would be referred to as “Marxism” They argued that human societies have always been divided into warring classes. They argued that human societies have always been divided into warring classes. Middle class or employers-Bourgeosie Middle class or employers-Bourgeosie “Have Nots” or working class- Proletariat “Have Nots” or working class- Proletariat

7. Theories of Marxism According to Marx industrialization had enriched the wealthy and impoverished the poor. According to Marx industrialization had enriched the wealthy and impoverished the poor. Marx and his followers predicted that sooner or later the workers would unite to overthrow the bourgeosie. Marx and his followers predicted that sooner or later the workers would unite to overthrow the bourgeosie. “The proletariat have nothing to lose but their chains.” “The proletariat have nothing to lose but their chains.” Marx predicted that capitalism would collapse and destroy itself. Marx predicted that capitalism would collapse and destroy itself. Big factories would drive out smaller businesses Big factories would drive out smaller businesses The theory has it that workers would take control and share the profits equitably amongst one another The theory has it that workers would take control and share the profits equitably amongst one another Eventually….the idea of “Communism” would develop Eventually….the idea of “Communism” would develop

8. The Argument(s) for Capitalism Promotes individual initiative Promotes individual initiative You work hard, some luck, with a great idea-the rewards are yours! You work hard, some luck, with a great idea-the rewards are yours! YOU win or YOU lose YOU win or YOU lose Free Enterprise System-Private decision V. State control Free Enterprise System-Private decision V. State control Labor (workers) sell their abilities. They are paid based on the demand for their skill set. Labor (workers) sell their abilities. They are paid based on the demand for their skill set. The Father of modern capitalism is Adams Smith-wrote The Wealth of Nations The Father of modern capitalism is Adams Smith-wrote The Wealth of Nations

13. What is Communism A form of complete socialism where the government owned ALL land, mines, factories, railroads, and business A form of complete socialism where the government owned ALL land, mines, factories, railroads, and business NO MORE PRIVATE OWNERSHIP NO MORE PRIVATE OWNERSHIP Marx’s book, The Communist Manifesto would receive little attention during his life but would become an inspiration to hundreds of millions in the 20 th century. Marx’s book, The Communist Manifesto would receive little attention during his life but would become an inspiration to hundreds of millions in the 20 th century.