1. October 16, 2007 1.What is a natural resource? 2.What is capital? 3.What do YOU think capitalism might be? 4.What country did the industrial revolution start? 5.Define “Industrial Revolution”.

2. I do have a test today. It’s on European socialism. I mean, really, what’s the point? I’m not European. I don’t plan being European. So who cares if they’re socialist or not? They could be fascist anarchists. It still doesn’t change the fact that I don’t own a car. Not that I condone fascism, or any –ism for that matter. _ism’s in my opinion are not good. A person should not believe in an –ism, he could believe in himself. I quote John Lennon. “I don’t believe in the Beatles, I just believe in me.” Good point there. After all, he was the walrus. I could be the walrus. I’d still have to bum rides off people. Name that movie...

3. Capitalism 10.3.6 Part 1 Ch. 9.4 Pg. 300-306

4. The Isms! Businessmen thought govt should stay out of business affairs Reformers wanted govt to help improve life of the poor Started new ideas on life and how government should be run.

5. Economic Philosophies Laissez-Faire Economics: –“let people do as they please” –Want free market, no govt. interference Owners set working conditions –No minimum wage –No minimum workday Competition regulates product pricing –Ill’s of society will be wiped away by “an invisible hand” –What are some problems with this theory? Who do the people represent?

6. Adam Smith – (1776) The Wealth of Nations Professor in Scotland 3 laws of Econ. 1.Self-interest: –People work for their own good 2.Competition: –Competition forces better product 3.Supply and Demand: –Enough stuff produced at the lowest price to meet demand (1723-1790) Adam Smith

7. Capitalism Factors of production: 1.Raw materials 2.Factories 3.Products 4.Income 5.Demand ** 1-3, ALL PRIVATELY OWNED** –$$$ invested in businesses to make profit #3 #4#5

8. Rise of Corporations Large companies require a great deal of money –Entrepreneur: Organizer, operator of companies Sells stock to raise money for business venture –Stock: Individual shares of company –In essence become part owner of company, shareholder –Corporation: Owned by shareholders: –Share in profits, not personally responsible for company debts –Corporations able to raise money necessary to purchase industrial equipment

9. Sir Richard Branson Sells Stock, who become share holders Form corporations “Virgin Atlantic”

10. Big Business Large corporations form, like: –Standard Oil Owned by John D. Rockefeller –Carnegie Steel Company Owned by Andrew Carnegie Become known as Big Business –High profits earned on backs of workers John D. Rockefeller (1839-1937) Andrew Carnegie 1835-1919

11. 2 Paragraphs Is capitalism fair? Why?