1. Essay Review Economic Systems!

2. Components of the Regents Essay F – Facts, Evidence & Details (the explanation, specifics and substantiation of the essay) O – Organization (Introduction, Body Paragraphs & Conclusion) L – Level of Analysis (the long-range or immediate impact of the information on a society or on history) D – Development of the Task (the bullets of the task)

3. The Economic Systems Essay! Task: Identify one society and one economic system that has been used or is being used in that society: Discuss the historical circumstances surrounding the development of that system Describe two features of the economic system Evaluate the impact that economic system had on this society during a specific historical period

4. Economic Systems Traditional Based on agriculture Limited barter trade Neolithic Civilizations Early River Valley Civilizations Market Based upon Supply and Demand Usually focus on consumer goods Little government control Command Controlled by strong, centralized government Usually focuses on industrial goods Little attention paid to agriculture and consumer goods Mixed Combination of Market and Command economic systems Market forces control most consumer goods Government directs industry in need areas.

5. Essential Information for this Essay!

6. Manorialism Circumstances: –Tribal invasions made Europe a dangerous place –Peasants & Lesser lords exchanged labor & loyalty for land & protection Features: –Manor system is self- sufficient – limited trade or travel –Land is the basis of wealth and power Impact: – Trade slowed – System of De-Centralized and confusing political loyalties emerged – Few people ever leave the manor on which they are born – Rigid social system based on birth *Western Europe During the Middle Ages*

7. Capitalism Circumstances: –Governments had promoted small business during the era of mercantilism –Mechanizing inventions allowed development of factories & mass production Features: –Pure laissez-faire capitalism – no gov’t restrictions on business –Supply & demand pricing –Law of Competition (produces best products) Impact: – Abuse of labor. Long hours, low pay, terrible conditions, child labor. (No gov’t regulation) – Terrible living conditions (slums), environmental pollution – Ultimately standard of living rises as cost of products declines and wages increase (after gov’t involvement) *Western Europe In the Industrial Revolution*

8. Communism Circumstance: –Social, Political & Economic conditions led to revolution –Bolsheviks institute a communist economy Features: –Collectivized agriculture –Emphasis on heavy industry –Theoretical economic equality Impact: – Lack of focus on consumer goods production led to low standard of living – Resistance to agricultural collectivization resulted in tremendous famine (20 million dead) *Soviet Union 1917-1990*

9. Mercantilism Circumstance: –Growth of commerce in Europe –Spain’s conquest of the Americas Features: –Amount of gold & silver in treasury defines the power of a nation –Nations seek to develop favorable balance of trade –Nations use colonies to assure favorable trade *Spain 1500 - 1820* Impact: – Huge amounts of silver flood Spanish economy creating inflation (there and world-wide) – Spain closely controls colonial economies, focusing on mining and cash crop production; No colonial industry!

10. Mixed Economy (Socialist + Capitalist) Circumstance: –Upon independence, India faced structural economic problems created by the partition of Pakistan –Needed to create industry Features: –Government ownership & control of major industries, transportation, communication & utilities –Private enterprise was encouraged at the local & retail level *India 1947-1991* Impact: – Industry does develop, but economic growth is slow in the Nehru/Gandhi era (~3.5% per year) – Budget deficits, inflation, food shortages – Rapid growth in 90s & 2000s as market economy is embraced

11. Communism Circumstance: –Anti-Nationalist sentiment led to revolution and a rise to power of the communist party Features: –Collectivized agriculture –5 year plans focused on heavy industry –Introduction of capitalism under Deng Xiaoping Impact: – The Great Leap forward forced agricultural collectivization and focused on steel production. Tremendous famine – 30 million dead – Failure of the Great Leap led to the Cultural Revolution and greater disruption of China’s society – Deng’s changes have brought growth & prosperity (to some) in China *China 1949-present*