1. ALL ABOUT ADAM SMITH Father of Capitalism

2. What book did he write? Inquiry into the Nature & Causes of the Wealth of Nations (a.k.a…The Wealth of Nations

3. What were his ideas on trade? -pro free trade -against mercantilism

4. What were his ideas on self- Interest? -Invisible hand guides economy -Each individual maximizes his own benefit

5. What were his ideas on Government? -limited involvement in economic affairs -protect against monopolies -provide public services

6. What were his ideas on labor Productivity? -specialization

7. Who/What did his ideas Influence? -Founding fathers of U.S. -British trade policy in 18 th century

8. What are the strengths of his Ideas? -Competition leads to efficiency

9. What are the weaknesses of His ideas? -abuses developed during the Industrial Revolution -exploitation of workers

10. ALL ABOUT KARL MARX Communism

11. What books did he write? -Communist Manifesto -Das Kapital (economic theories)

12. Proletariat: -poor working class Bourgeoisie: - Wealthy factory owners - capitalists

13. What problems did Marx Believe capitalism caused? -oppression to workers -workers exploited & wages kept Low by greedy factory owners

14. What did Marx believe about Class in society? -Class struggle exists -Class is determined by ownership of property -rich get rich & poor get poorer -wanted classless society – all equal

15. What stages must society go Through to reach the ideal state Of Communism? -greater suffering for workers & More wealth for capitalists -lead to violent revolution & workers Would win

16. -need authoritarian gov’t at first, Then classless society would form & no gov’t would be needed

17. Who/What did his ideas Influence? -Lenin & Stalin -Russian Revolution (1917) -Chinese Communist Revolution (1949)

18. What are the strengths of his Ideas? -workers would be valued more

19. What are the weaknesses of his Ideas? -Wages were increased over years, not lowered -Communism never worked in practice – still led to corruption & oppression