1. Economic Systems
Learning Target #12: I can compare and contrast various economic systems (capitalism, socialism, and communism) and evaluate how they were affected by the Industrial Revolution.

2. Life During the Industrial Revolution
Improvements
New Inventions
Made tasks easier
Longer Life Expectancy
More Food
Faults
Poor living conditions
Poor working conditions
Little to No worker’s rights

3. What is Capitalism? Break down the word: Capitalism Capital + ism =
$$$$$ + system of beliefs
Capitalism
A competitive economic system where the goal is to make a profit $$$

4. Adam Smith – Capitalism
“Invented” capitalism in the 1700s
Wrote “Wealth of Nations” in 1776
“If government would refrain from interfering with with free competition…wealth would increase…”
Capitalism became popular and spread to other countries through the industrial revolution.
People own private property or capital
The government does not control the economy)
Progress only happens when individuals follow their self-interest
More competition in the market  fair prices and good products

6. Example: Capitalism in USA
In the USA, we have a capitalist economic system
Our government allows businesses to compete and do what they want (Laissez Faire)
The Goal: To make a profit $$$

7. Capitalism and Your Cell Phone!
Companies (Samsung, Motorola, Nokia, Apple) compete to create and sell smart phones for lower prices.
Adam Smith said competition ensures fair prices and good products!

8. What is Socialism? Break down the word: Socialism Capital + ism =
People + system of beliefs
Socialism
Economic system where factors of production (factories, resources, workers) are owned by the government and main goal is to distribute wealth more fairly.

9. Life in a Socialist Society
Workers have:
Better, safer working conditions
shorter hours
You can make and sell what you want, but you must follow the governments rules, of which there are many
High taxes in return for government services
Free healthcare, free school, free day care, free preschool
A LOT of middle class
Not many really poor or really rich

10. What is Communism? Break down the word: Communism
Commun/Community/Commune + ism =
group+ system of beliefs
Communism
An economic system where wealth is distributed evenly and there is no private property
The people own everything and there is no competition

11. Karl Marx – Communism
Society has always been divided between “haves” (upper/middle class or bourgeoisie) and “have nots” (working class or proletariat)
“Haves” take advantage of “Have Nots”
The Industrial Revolution & capitalism made this class struggle worse…
So, the “have nots” should fight back and The PEOPLE should own the factors of production