1. Get out reading-T Chart from yesterday
February 25, 2016
Get out reading-T Chart from yesterday

2. Industrial Revolutions sparks new ways of thinking
Business leaders wanted less government intervention
Workers wanted more rights
Reformers wanted more government regulation

3. Capitalism Capitalism: factors of production are privately owned
Goal is to make a profit
Don’t believe in helping poor workers because it would hurt the free market

4. Capitalism Based on laissez-faire economics Adam Smith
“let people do as they please”
Natural laws would promote economic growth
Adam Smith
Believed in free markets and free economy
Wrote “The Wealth of Nations”
Based beliefs on three natural laws

5. Three Natural Laws Law of self-interest Law of competition
People work for their own good
Law of competition
Competition forces people to make a better product
Law of the “invisible hand”
Everyone working in own self interest will promote efficiency
Enough goods will be produced at the lowest price possible to meet demand in a market economy

6. Socialism
Socialism:
Born out of resentment of workers of growing class and wealth divide
Workers revolt and take over factors of production
Creates government whose goal is to benefit all
Govt. intervention in economy
Opposed to laissez-faire

7. Marxism Radical form of socialism
Coined by Karl Marx and Friedrich Engels in 1848
Argued the Industrial Revolution had enriched the wealthy and impoverished the poor
Society was divided into “warring classes” of “haves” and “have nots”

8. Communist Manifesto Pamphlet written by Marx and Engels
Wealthy controlled the means of production while workers performed the labor
They argued the workers(proletariat) will unite and overthrow the wealth factory owners (bourgeoisie)

9. Communist Manifesto Prediction:
Large corporations would buy up small factories and control all the wealth
Workers would revolt, seize factories, and produce necessary goods
Workers would spread wealth equally (beginnings of socialism)
Workers would control the government
Government would slowly diminish
The country would be ruled by a classless society
Finally, communism

10. Misunderstand human motives and unrealistic Revolution never happens
Problems?
Misunderstand human motives and unrealistic
Revolution never happens
2) Totalitarian one party rule emerge instead
3) Command Economies fail
lacks incentive and competition