1. Widened gap between rich and poor- leads to economic changes!
Mr. Connors
Economic Reform
Widened gap between rich and poor- leads to economic changes!

2. Economic Reform Capitalism: The “pro-business” economic system
Based on “laissez-faire” economics- let the people do as they please.
Owners set working conditions, and wages- free market system with…
NO GOVERNMENT INTERFERENCE!!!!

3. Adam Smith- Capitalism
Defends free market (Capitalism): The Wealth of Nations
Three Natural Laws of Economics:
Self-interest
Competition
Supply and demand: produce goods at low price to meet demand!
Birth of capitalism: F.O.P. are privately owned- money is invested in business ventures for a profit! (Basis for I.R.)

4. Capitalism Oppose government interference No minimum wage
No improvement in working conditions
Change these things- NO WEALTH!

5. Capitalist society during the I.R.
Wealthy Elite- 5% of population; 30-40% of wealth
I. M. C.- factory owners; will become part of wealthy elite  money!!
I.W.C.-factory workers, farmers; 80% of population

6. Response to Capitalism
Theorists believe that the wealthy or the government SHOULD intervene!!

7. Utilitarianism
UTILITARIANSIM- base importance of things on usefulness, government- promote greatest good for greatest number of people!
Call for government to do away with differences in wealth!
TRY TO MAKE SOCIETY MORE EQUAL!!!

8. Socialism
F.O.P. are “publicly” owned (government)- operate for the welfare of all.
Government planned economy- control of key industries helps end poverty, create equality
Relieve workers of harsh employers
Promote right to vote!
Use Labor Unions to achieve the goal!
Can have private property

9. Karl Marx
Radical Socialism

10. Marxism
The Communist Manifesto- outlines Marxist ideas (written by Marx, and Friedrich Engels )- 1848
Society built on warring classes:
“ haves”- bourgeoisie
“have-nots”- the working class (proletariat)
Wealthy control F.O.P./ Poor are slave-laborers for them

11. From Radical Socialism Communism
Karl Marx – Idea for the Future

12. Marxism  Communism
Revolution occurs: workers will overthrow rich- DICTATORSHIP OF PROLETARIAT
Believed capitalism would destroy itself- bring equality-CREATE A CLASSLESS SOCIETY!
All would be shared equally! No job too small! Government no longer needed
Hopes to achieve PURE COMMUNISM…

13. Pure Communism Complete socialism
ALL means of production would be owned and controlled by the people.
Private property would NOT exist.
All goods and services would be shared equally.
Marxist ideas influence Lenin (Russia), Mao Zedong (China), Fidel Castro (Cuba)

14. Pure Communism
Doesn’t work- economic forces are not the only thing that dominates society.
Gap between rich and poor does not happen the way Engles and Marx thought.
Society is not effected by economics alone!