1. Comparing Economic Systems
Civics Unit 7.1
Comparing Economic Systems

2. Warm Up
What are the elements of the American economic system (Hint: 6.1 notes) 1. 2. 3. 4. 5. 6.
How do these elements benefit individuals?

3. I. Types of Economics Systems:
Answer key economic questions of:
what to produce
how to produce
for whom to produce
Traditional Economies
relies on custom, culture, or ritual to decide
revolves around family/community

4. Market Economies Command Economies
free market, free enterprise, capitalism
choices made by individuals and companies to decide, not gov’t
Command Economies
centrally planned economy
the gov’t alone decides

5. promote general welfare
Mixed Economies-
combination of other three economies
most modern economies are mixed
US has free market economy attributes, but the gov’t intervenes to
keep order
regulate
provide services
promote general welfare

6. Interpret: Explain each quote in your own words
From each according to his abilities, to each according to his needs.
It is not from the [goodness] of the butcher or the baker that we expect our dinner, but from their regard to their own interest

7. II. Free Market Economies
Adam Smith’s “Wealth of Nations” (1776)
called for restricting gov’t in the economy
laissez-faire- leave alone
2. believed that competing self-interest would regulate the economy (“the invisible hand”)

8. Self-Interest- personal gain is motivating force in economy
Competition-
struggle among producers for consumer’s $
competition is regulating force in economy
keeps prices low and quality high
Advantages:
Economic efficiency
Economic freedom
Economic growth
Consumer sovereignty

10. III. Centrally Planned Economies
Government controls resources and production
Karl Marx’s “Communist Manifesto” (1848)
believed all politics is driven by the struggle of the proletariat (workers) vs the bourgeoisie (rich upper class)
believed a socialist society can only come after a violent revolution

11. Socialism
belief that wealth should be redistributed throughout society
can allow for democracy and private ownership
in socialist countries, gov’t often owns major industries
uses taxes for social programs

12. Communism
centrally planned economy with all economic and political power residing in the central government
little to no private ownership with societal equality
communist governments are authoritarian- strict obedience to the government, no individual freedom

13. The Capitalist Manifesto
With your partner…
Write a 5 –point capitalist response to Marx’s 10 tenets
WWASD
(What would Adam Smith do?)

14. Exit Ticket Why is the United States a mixed economy?
Of the four types of economies studied, which do you think is the best?

15. Civics Unit 7.2 Labor Unions

16. Warm Up
Please take notes as you watch the video on the Triangle Shirtwaist Factory Fire
What happened?
Why were Americans shocked by the events on that day?
What reforms did it bring to laborers in the United States

17. I. Labor Movement
Labor Union- people of same trade organizing to get better conditions, benefits, or pay
Rise of labor movement
during early 1900s, unions were illegal
Pres. Roosevelt’s ‘New Deal’ during the Great Depression gave workers right to organize, minimum wage, overtime pay, and no child labor

18. What is the artist’s point of view about unions?

19. II. Negotiations
Collective bargaining- when union and company representatives meet periodically to negotiate new labor contracts

20. Labor tools protest and use of media
strike- union workers refuse to go to work until demands are met
political contributions and lobbying

21. Employer negotiation tools
cutting benefits (health care, vacation time, etc.)
lockout- prevent people from working
injunction- court order to stop protest or strike
Third party negotiation
mediation- when a third party helps to create a compromise
arbitration- if negotiations break down, third party forces an agreement

22. Decline of the labor movement
right-to-work laws- ban mandatory union membership
National Labor Relations Board (NLRB) oversees elections and bargaining
unions have dropped in popularity

23. Close What is a labor union? What is collective bargaining?
What gov’t agency run by the President oversees unions?

24. Monopoly Round Three Please play for 20 minutes
At the end of the round please complete the third column of your graphic organizer for communism

25. Solve for the contract you negotiated
Current labor costs
Wages
2,500 workers ($15 per hr x 40hrs per week x 52 weeks)=____________________
Insurance (currently paid for by worker)
$10,000 per year per worker
Solve for the contract you negotiated

26. Collective Bargaining Activity
Your Team (Management OR Labor) needs to come up with a plan for negotiation.
Decide what you must have and what you might be able to give up

27. Collective Bargaining
You have 4 minutes to come to a compromise. If you cannot, arbitration will take place.
Wages
Hours
Overtime
Benefits

28. What is a strike? All workers in a union refuse to go to work
Unions encourage the public not to buy the goods produced by their employers
The company that employs union workers refuses to let them work
A court mandates that unionized employees must go back to work because they provide a vital service

29. The difference between mediation and arbitration is
Mediation requires a third party, but arbitration does not
Mediation is a compromise using third parties, while in arbitration the third party alone decides on how to settle the disagreement
Arbitration requires a third party, while mediation does not
Arbitration is a type of union membership dues, while mediation is not