1. An Age of Reforms-New Economic Systems
Get out your pink, yellow, and green highlighters
As we go through the notes, add any important info I tell you in the lines to the right.
Highlight according to the following key:
People = pink
Economic theories = green
Social changes = yellow

2. 1. Capitalism “free market economy”
Money invested in businesses with the goal of making profit
Adam Smith
“Father of Capitalism”
Wrote “The Wealth of Nations”

3. Laissez Faire “the Foundation of Capitalism”
French for “let do” or “leave alone"
Little government involvement

4. 2. Socialism “command economy”
Economic system where the factors of production…
Are owned by the PUBLIC
Operate for the welfare of ALL
The government actively plans the economy.

5. 3. Communism “command economy”
A complete form of socialism in which the means of production would be owned by the PEOPLE.
Karl Marx
Father of Communism
Wrote “The Communist Manifesto”.

6. Communism vs Capitalism
Karl Marx
Economy should be owned by the government
Government controls all business and closely regulates economy (sets low prices, etc.)
Eliminate competition between people
Government determines job
Everyone should have an equal share of the available wealth and property
COMMAND ECONOMY
Adam Smith
Government should NOT interfere with economy (laissez-faire)
Competition between businesses is good for the economy
Everyone has the opportunity to succeed
People are free to choose their own careers
Money invested in business with the goal of making profit
FREE MARKET ECONOMY

7. Reform Movement—Unions
Unions- Workers joined together for reform
Collective Bargaining- negotiations between workers and their employers
Strike- refusal to work

8. Results Better Working Conditions like...
Shortened work times for children
Limited work day to 10 hours
Better pay

9. Other Reform Movements
William Wilberforce- fought for abolition of slavery, Britain abolished slavery in 1833