1. Differences between Capitalism and Socialism In capitalism goods and services are distributed by private businesses People are allowed to strive and obtain a higher standard of wealth than others in capitalism In Socialism goods and services are distributed by the government Everyone is economically equal. (everyone gets the same resources)

2. Under Capitalism people pay for the services they need and not what they don’t. Under Socialism everyone gets the same standard of care.

3. Differences between Communism and Socialism Under Communism every industry is controlled by the government In socialism there can be some private industry.

4. Karl Marx Born in Trier, Germany 1818 Depended upon his friend Fredrick Engels for his income The Father of Modern day Socialism and Communism Died in exile in London in 1883

5. History of Socialism Marx wrote during the industrial revolution, a time when conditions for workers were bleak Marx believed that all of history was a struggle between the classes or between the rich (Bourgeoisie) and the poor. Marx predicted that the workers (Proletariat) would eventually rise up and establish a classless society where everyone is equal economically

6. Marx believed that religion was just there to control people. He called it “the opiate of the masses” or (Drug of the people) In Marx’s classless society there was to be no unemployment and goods would be available to all according to need

7. The Welfare State In Socialism the government provides most services for the people These may include- healthcare, housing, education through college, daycare, unemployment, and pensions for the retired The drawback is that this is all paid for by taxes. In some countries this can be as high as 50-60% of a person’s income This expense usually falls on the rich and middle class

8. Criticisms of Socialism “If the government is going to take care of us, why should we work hard?” Too much government, too little choice.

9. Criticisms of Capitalism Not everyone starts off under capitalism with the same chance. Some are born into wealth and others must achieve it. It can be argued that the poor have a chance, they can go to school in the United States and study hard, get into a good college succeed. For many people this is not the reality.

10. For many people school is not a concern, daily survival in a rough environment is a more pressing concern. Studies show that the better the education you get the higher the income you are more likely to earn Studies also show the less you eat and the more you are concerned with safety the more poorly you will perform on a test.

11. theories of Capitalism Laissez faire- the “hands off approach” No government involvement in the market or free enterprise system is best says this theory. Adam Smith wrote about this in his book the wealth of nations in 1776

12. Major criticisms of this theory are that without government intervention employers could abuse the worker. It is because of government intervention that you have breaks at work, a safe work environment, fire exits, child labor laws, the 8 hour work day and overtime pay.

13. “Trickle down economics”- The idea that if we cut taxes to the rich they will have more money to invest in industry thus giving people jobs. People will then benefit from these jobs and become prosperous themselves

14. Criticism- The money doesn’t always trickle down. Companies that do well sometimes will still layoff employees they don’t need just to make extra profits. CEO’s take home huge bonuses while the person on the bottom of company may not even be getting health benefits. Rebuttal- CEO’s need these bonuses to encourage them to work harder and not leave to other companies

15. Assignment Answer the following questions on a separate sheet of paper IN YOUR OWN WORDS! You should explain the information as if you are writing to someone who does not know anything about the topic. WRITE OUT QUESTIONS 1-15 ANSWER QUESTIONS THOROUGHLY

16. 1.Who is Karl Marx. 2.Who is Fredrick Engels? 3.What did Marx believe about the struggle b/t classes? 4.4. What was happening at the time Marx was writing? 5.Who are the Bourgeoisie? 6.Who are the Proletariat? 7.What type of society would the Proletariat create? 8.What does Marx say about religion?

17. 9. Explain the welfare state. (explain who expense falls on) 10. What are the criticisms of Socialism? 11.What are the criticisms of Capitalism? 12. What is Adam Smith’s theory of capitalism? 13. Explain “trickle down economics.” 14. What are the criticisms of “trickle down economics?” 15. What is the rebuttal of economics?

18. Writing Assignment In one paragraph (5- 7 sentences) explain (IN YOUR OWN WORDS) the difference between Capitalism and Socialism; and Communism and Socialism.