1. Capitalism, Communism, and Socialism

2. Mercantilism
Mercantilism is the idea that best thing for a country to do is make sure more money comes in than goes out.
Countries used high tariffs and total embargoes to make sure people bought domestic instead of foreign products.

3. Laissez-faire Economics
Laissez-faire means “let them do” or “leave it alone”.
The term comes from the 18th century French policy to avoid interfering in business—no tariffs on foreign goods, subsidies to domestic ones, or government enforced monopolies.

4. Capitalism
In 1776, Scottish philosopher Adam Smith published a book called The Wealth of Nations.
His laissez-fair theories became the basis for modern capitalism.
Capitalism is a socio-economic policy based on the wealthy investing in business.
Smith and other argued that enlightened self-interest would ensure businesses paid workers enough to survive—no government interference is needed.

5. Socialism
The agricultural revolution allowed the populations to grow faster than ever before and created a large surplus of labor.
This meant factory owners could keep wages low.
Poverty became wide spread in European and American cities.

6. Socialism
Charles Fourier was one of the leaders of a new movement that thought government should do more to protect workers.
Socialism puts the factors of production under government control.

7. Communism
Karl Marx was a German philosopher who published a book called the Communist Manifesto.
In it, Marx says that as government has progressed from absolute monarchy to capitalist democracy it must soon progress to what he called Communism.

8. Communism Communism is a socio-political theory.
Economically it resembles socialism, but true socialism can happen under any government.
Communism calls for a single party system controlled by the workers and created by armed revolution.