1. Capitalism, Communism, Socialism

2. Essential Question:
What are the differences between capitalism, communism, and socialism?

3. Traditional Economy Agriculture 3000BCE-1500CE
Subsistence: Growing Just Enough to Feed Your Family
Commercial: Sell Surplus in Local Market

4. Mercantilism Columbian Exchange 1500-1800
Nation builds its supply of gold & silver by exporting more than it imports
Joint Stock Companies to finance colonial settlements

5. Capitalism: Market Economy
1800-Present
Laissez-faire: government should keep their hands-off business
Adam Smith
Free enterprise system

6. Capitalism (Cont.) Law of Supply & Demand
Self-Interest of producers & consumers
Competition
Agricultural & Industrial Revolution

7. Hardships Under Industrial Revolution
Low Pay
Unsafe Working Conditions
Extreme Poverty
Child Labor
No Worker Rights

8. John Stuart Mill English philosopher Social reformer
Government should prevent excess business greed when it harmed the worker

9. Communist Manifesto Karl Marx Friedrich Engels 1917-1989
History is struggle between “haves” & “have-nots”
Proletariat = working class

10. Communist Revolution
Working class revolt against injustice of capitalism
Create classless society
All means of production & property owned by “the people”

11. How Marx Got it Wrong Labor unions fight for worker rights
From each according to their ability, to each according to their need
Workers have no incentive to work
Tyranny of the Communist Party

12. Utopian Socialism Robert Owen
Communities where all work & wealth was shared

13. Command Economy Communism Government decides what will be produced
Rigid Planning
Discourages innovation
Poor quality & shortages

14. Mixed Economy How is the United States a mixed economy?
Capitalism & Socialism mix
Some government intervention
How is the United States a mixed economy?
Water, sewage, mail, schools provided by government
Private companies compete for markets including phone services, airlines, etc.

15. Modern Socialist Government
1900-Present
Government ownership of key industries:
Communication
Power
Transportation
Health
More regulations & support

16. Sweden 55% tax rate Free education, health care, child care
5 years unemployment benefits
25% of businesses owned by government
Housing for those in need.
What kind of economy is this?

17. North Korea What kind of economy is this?
Kim Jong-Il has restricted foreign exports
92% coal & iron is used in manufacturing of military hardware
A shortage of grain in from led to the deaths of 800,000 North Koreans

18. Japan What kind of economy is this?
Dozens of Railway companies compete for commuters
Japan’s consumer electronics companies include Sony, Casio, Toshiba, Epson, Sanyo, Nikon
Consumer demand for tuna, crab, & whale meat has led to overfishing and criticism by world wildlife organizations
What kind of economy is this?