1. Economic Systems “ISMs…..all over the place”, focus on keeping them straight!

2. Communism: the government owns the things that are used to make and transport products (such as land, oil, factories, ships, etc.) and there is no privately owned property; they control and direct. People: Karl Marx Government – controls business and directs economy; lots of control Wrote the Communist Manifesto with Engels Believes that the basis of all wealth is labor, the workers, not owners Abolish private property Believes capitalism exploits workers Political change brought about due to the Ind. Rev. caused revolutions and several European gov’t to become communist. (Inspired by Marx and Engels)

3. Communism cont. Ex as of 2010: People's Republic of China Republic of Cuba Democratic People's Republic of Korea (North Korea) Lao People's Democratic Republic (Laos) Socialist Republic of Vietnam

4. Socialism: “An ideology arguing that citizens are best served by policies focused on meeting the basic needs of the entire society rather than on serving the needs of individuals as individuals.” People: Robert Owen, Charles Fourier, Saint- Simon Government: some control, not as much as communism. Guarantees certain wages Public ownership of major means of production. Mixed system of individual choice and gov’t control Ex: Canada, Sweden

5. Free-Enterprise (Capitalism): the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market. People: Adam Smith Government: very little to no control Supply and demand Law of competition Laissez-fiare Wealth of Nations: ▫Productive, guided, efficient Affected the Ind Rev: increased demand for manufactured good so the factory system was created to produce goods quickly

6. Famous Entrepreneurs/Capitalists DONALD TRUMP OPRAH WINFREY RAY CROC ANDREW CARNEGIE BILL GATES SAM WALTON

7. Which system believes that government should control businesses and direct the economy? Which system says the government should have some control, but the public owns the means of production? Which system believes that the government has very little to no control?