1. Adam Smith vs. Karl Marx Kempton & Patten Global History II Mepham High School

2. Adam Smith  The father of Capitalism.  Book - 1776, The Wealth of Nations.

3. What is Capitalism?  An economic theory where individuals control the means of production and the markets set the prices.

4. Beliefs of Smith  Laissez-faire: Government should keep its “hands off” business.  Competition and Incentive.  The Invisible Hand: Prices would be set by “market forces” meaning the consumer.

5. Elements of Capitalism PropertyPrivate Government RegulationsMinimal Safety net for those who failNone Control of the Means of Production Private

6. “It is not from the benevolence (good heartedness) of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Adam Smith.

7. Karl Marx  An Industrial Revolution era philosopher who supported the rights of the proletariat.  Book – 1848, The Communist Manifesto.

8. What is Communism?  It is characterized by state control of the economy, and restriction on personal freedoms.

9. Beliefs of Marx  History is the history of class struggle  Haves vs. Have Nots  The workers must unite to overthrow the owners  Shared ownership (no private property)  The workers control the means of production.

10. Elements of Communism PropertyShared Government RegulationsMaximum Safety net for those who failYes Control of the Means of Production Government/People