1. Capitalism vs. Communism
Unit 7 – Ms. Doyle

2. Page 3: Capitalism vs. Communism
WARM UP Make a t-chart in your notes of the pros and cons of industrialization. Be prepared to share!
Agenda:
Warm Up – T-Chart
Notes
Practice Problems
Organize binders
Homework:
Document test next class & Binders due!

3. Democracy & Capitalism
Natural Rights: life, liberty, pursuit of happiness (human rights)
Bill of Rights maintains natural rights
Economic Freedom
Elected Officials
Informed Society
Citizen Participation
VOTE!
Limited government
All citizens are valued equally
Sovereignty
Majority rules
Many viewpoints
Direct republic
Vote for officials
Goods
People buy things and sell for a profit
Free market = competition
Supply and demand
Supply: the quantity of the available product
Demand: quantity of the product that people need at a specific price
Class division
Working class paid with wages and salaries
Capitalist class makes profit from what working class produces

4. Communism
Communism believes in “equality” everyone is on the same level
Money is taken from the rich and given to the poor so everyone is equal
Government controls all aspects of production. Government tells what to produce, how much, by when, and who will produce it.
Under Communism, no one owns their own business.
Father of Communism is Karl Marx

5. Communism Karl Marx wrote the Communist Manifesto
Communism is also known as “Marxism”
Karl Marx believed in a classless society (no rich, no poor)
He wanted the government to control all means of production.
He believed this would lead to utopia.

6. I grew 3 apples, the government took those apples, gave one to me and one to each of my two neighbors. _________________
Your small business hit a rough patch and you lost all of your money. You have to close the business and find a job elsewhere. _________________
I make $20,000 a year, so does the heart surgeon who lives down the street from me. _________________
I go to Zehrs Foods and buy whatever groceries I want to buy. _______________
I only make $20,000 a year, but the teacher who lives down the street from me won the lottery and made 30 million in one day. __________________

7. 6. Your small business hit a rough patch and lost all of its money, you are still given your salary and may have a chance to get the business back on its feet. ___________________
7.I go to the grocery store and buy the same goods as everyone else in the store. _________________
8.I have a great idea to improve computers, I will call it “Microsoft” and will sell it to millions of people and become one of the richest people in the world. _________________
9.I have a great idea to improve computers, I will call it “Microsoft.” The government will take my idea and make sure that I receive the same amount of money for my work as every other person. __________________
10. I am a talented basketball player (seriously, NBA quality), I am going to go professional and make millions of dollars a year. __________________