1. =CAPITALISM, COMMUNISM, SOCIALISM

2. Rock Paper Scissors

3. Three Factors of Production
Factory System – Entrepreneurs decided to combine all the factors of production in one place
Workers raw materials machines + building
Labor- Workers (Displaced farmers, increased population)
Land- Natural resources.
Capital- Money to start the business.
Entrepreneurs- Risk takers, people with the idea, capital and the guts to take the risk.

4. What is Capitalism?
Capitalists (businessmen) started businesses by taking wool and flax to the cottages (homes) of peasant spinners.
After the wool and flax were spun and carded, the capitalists would then take it to the weavers.
Then he would get the cloth made into clothing and sell it for a profit.

5. Adam Smith’s Laissez-Faire
Who is Adam Smith?
Founder of laissez-faire economics
Author “The Wealth of Nations:
Belief that businesses should operate with little or no government interference “The Invisible Hand”
Two laws govern economics
Supply & Demand
Competition
Supply and demand: the amount of a product or service available and the desire of buyers to buy it. Its that balance between what you will be willing to pay and what the market will bare.

6. Capitalism Positives:
Adam Smith- laissez faire (no government interference w/business)
Privately owned business.
Entrepreneurs are rewarded for their risks.
Goods are improved, competition breeds better products at lower costs.
Anyone can become rich!
Negatives:
Social Darwinism- survival of the fittest used for society.
Wealth of one built on the backs of many.
Gap between the rich and poor grows wider.

7. Response to Capitalism
Utopianism- Society where everyone worked together. Happy.
Socialism- the means of production (land, capital, raw materials and factories) should be owned and controlled by society.
Communism- Karl Marx: Believed there is a constant struggle between the “haves” and the “have-nots.”
Workers (proletariat) were the productive class. He wanted the people to own everything, no private property, no classes. The idea is that “from each according to his ability, to each according to his need.”
SOCIALISM IS AN ATTEMPT TO ELIMINATE THE DIFFERENCE BETWEEN THE RICH AND POOR. WHICH MEANS THAT WEALTH IS DISTRBUTED EQUALLY AMONG PEOPLE.

8. Business Organizations
Sole proprietorship- one person owns the business.
Partnership- 2 people own the business.
Corporation- Shareholders own the business (stocks)).

9. Argumentative Writing
Make Argument
Support your argument with evidence
Acknowledge the counterclaim & use evidence to write your rebuttal argument
Conclude with a strong statement
The United States government has failed. The citizens have chosen a new form of government. The decision is now between which economic system will better support the new government. A communist or capitalist system.