2. Bellringer Put your gradesheet if you got it signed late in the red bin! Put your completed homework into the red bin! Get ready for your first SOL Challenge! If you finish the SOL Challenge, work on the SOL Wrap-up! BJOTD: Why are cows always broke?

3. Economic Systems through Cows

4. What is an Economic System? An economic system is how goods and services are produced and distributed in an economy.

5. Exploring Economic Systems I am going to give everyone some candy, and we are going to use this candy to explore “economic systems”—or, different ways to get what you want/need – Rules: Rule Number One: You CANNOT eat the candy until I tell you to (you’ll get a chance later) Your goal is to get as much of the candy that you want. We will run through this simulation 3 times, each with slightly different rules. Pay close attention so that you don’t miss new instructions!

6. Next Scenario Rules: – You STILL cannot eat the candy – Place your candy on the table in front of you: I have to do some redistributing. Listen while I do so.

7. Questions What did I do with the candy? How was the candy distributed? Was it equal? Who did I represent? Do you think this system would work in our country today?

8. Communism

9. An economic system in which the people own all aspects of business and share all goods and services Socialism and Communism were created in response to the injustices of capitalism Positives – People work for the good of all – Attempt to redistribute wealth Negatives: – Inefficient businesses – No price competition

10. Next Scenario Rules: – You still CANNOT eat the candy – Place all the candy at the center of your table

11. Questions How much candy were you all given at the beginning? How did you get more? Was the system fair? How would this idea be a solution to Capitalism?

12. Socialism

14. Definition: an economic system in which the government controls things and gives them out as needed.

15. Capitalism Questions: – How much candy did people get to start with? – What did you try to do? – How did you try to get more/less candy? – What did I do? – Where do you see this kind of economic system today?

16. Capitalism

17. Definition: Economic system in which money is invested in business ventures with the goal of making money Role of the Government: Hands off! – The government shouldn’t step in for any reason, including laws for better wages or working conditions

18. Capitalism Positives – More competition Better goods at better prices – Entrepreneurial opportunities (chances to open your own business) – Helped middle class grow – Fueled the industrial revolution – Increased standards of living (for some) Negatives – Only a few grew rich – No labor laws – People grew upset with working conditions and unequal distribution of wealth, so they searched for other solutions

19. Important Economic Thinkers Adam Smith – Wrote The Wealth of Nations about the theory of capitalism – Believed in laissez-faire (hands off) economics. (The government shouldn’t interfere.) Karl Marx (and Friederich Engles) – Wrote Communist Manifesto and Das Kapital in 1848 – Believed the world has always been divided into the “haves” and the “have nots” Rich were growing richer and the poor poorer—this was BAD – Communism was their solution to Capitalism

20. Activity To wrap up our discussion of the Industrial Revolution, you will write a letter to a friend explaining to them your experiences of the Industrial Revolution. – Paragraph A: What the Industrial Revolution has changed about everyday life (6-7 sentences) – Paragraph B: The good and the bad effects of the Industrial Revolution (6-7 sentences) – Paragraph C: What you think the ideal economic system would be (define it for your friend), and why (6-7 sentences)