1. NEW WAYS OF THINKING CAPITALISMVCOMMUNISM

2. 10.3 Students analyze the effects of the Industrial Revolution in England, France, Germany, Japan, and the United States.

3. Industrialization led to new ways of thinking about government  Laissez Faire economists argued that government should leave business alone to operate “naturally”

4. Adam Smith was the leading laissez faire economist  wrote The Wealth of Nations  believed government should not put limits on business  believed this freedom would help a nation’s economy grow

6. Smith and others supported an economic system calledCapitalism  "A free market, the unregulated exchange of goods and services ­ would come to help everyone, not just the rich." –Adam Smith

7. In Capitalism…. Individuals owned the means of production Individuals owned the means of production People invest money in business in order to make a profit – “the profit motive” People invest money in business in order to make a profit – “the profit motive” Competition creates efficiency controlled by supply and demand Competition creates efficiency controlled by supply and demand

8. Thomas Malthus Population and Food Supply "The power of population is greater than the power of the earth to produce subsistence for man."

9. David Ricardo ”iron law of wages” “There can be no rise in the value of labor without a fall of profits.”

11. Utilitarianism John Stuart Mills Jeremy Bentham

12. Utilitarianism felt that an idea or practice was good only if it was useful  The Utilitarians thought that the low pay and poor housing workers received were unfair consequences of capitalism

13.  They thought government should work to end great differences in wealth between people  Jeremy Bentham=“The greatest good for the greatest number”

14. CAPITALISM RICARDO-”IRON LAW OF WAGES” MALTHUS- POPULATION ALWAYS >FOOD SUPPLY UTILITARIANISM- GREATEST GOOD FOR GREATREST NUMBER SUPPLY AND DEMAND PRIVATE OWNERSHIP OF MEANS OF PRODUCTION

15. The Rise of Socialism  The idea that government should control the means of production for the good of the people

16. Utopian Socialists  Socialism achieved by the moral persuasion of capitalists to surrender the means of production peacefully to the people.  Robert Owen  Charles Fourier

17. Robert Owens "In those characters which now exhibit crime, the fault is obviously not in the individual, but the defects proceed from the system in which the individual was trained." not in the individual, but the defects proceed from the system in which the individual was trained."

18. MARXISM Socialist theory that capitalist and proletarians(working class) will inevitably fight a class war, ending in working class victory Marxists believe that society is governed by economic forces

19. SOCIALISM UTOPIAN SOCIALISM MARXISM (SCIENTIFIC SOCIALISM MARXISM SOCIAL DEMOCRACY COMMUNISM

20. Karl Marx The Communist Manifesto-1848 vanguard of the proletariat “Workers of the world unite” Das Kapital -1867 communism- form of socialism where a highly advanced group forces the socialist revolution to come early

21. “The inevitable struggle between social classes would lead to the creation of a classless society where all means of production would be owned by the community.”

23. Unionization and legislative Reforms 1. Unions-workers organizations to gain better wages, working conditions, and benefits through class solidarity 2. Strike- the withholding of labor by a group to gain economic or political goals

25. 3. At first Britain outlawed unions 4. Later the system of collective bargaining between employers and employers was adopted 5. Luddites- workers who protested loss of jobs by destroying machinery