1. Economic Systems of Industrialization

2. Capitalism GOAL: FREEDOM Economic system run by a free market
All production (businesses) is privately owned
Government does not regulate businesses
People compete to get money, property
People get freedom, but less equality

3. Capitalism
Major principle of Capitalism: “Laissez faire” (leave alone)
Economic policy of letting private businesses set working conditions and policies
Government does not interfere

4. Capitalism Adam Smith - called “the father of Capitalism”
Wrote “The Wealth of Nations”
Law of self-interest – people work for their own good
Law of competition – competition forces people to make a better product
Law of supply and demand – in a free market, enough goods would be created to meet demand

5. Socialism GOAL: FAIRNESS
Economic system in which goods are regulated by the government
Higher taxes than Capitalism
More public services for the people
Concerned with fairness, ending poverty

6. Communism GOAL: EQUALITY
Economic system run by the people, where everything is shared equally
Property shared by the community
Businesses owned by the community
People all get equal pay

7. Communism
Karl Marx
Industrial Revolution made rich richer, poor poorer
Classes would eventually go to war
People would rise up and create a system in which people shared all goods and services

8. Differences between the economic systems
Capitalism?
Socialism?
Communism?