1. ECONOMIC SYSTEMS CAPITALISM, SOCIALISM, AND COMMUNISM.

2. LAISSEZ-FAIRE “Free to do” Adam Smith was the leading advocate Market Economy-Markets free from government interference where businesses can compete freely against each other for trade Industrial Capitalism emerged as the main economic system in the Western world.

3. BUSINESS LEADERS Industrial Revolution changed roles for business leaders Entrepreneur-someone who starts a new business Land owners lost power, Industrialists were gaining wealth and political power Financiers, bankers, and investors pooled money together to create large corporations Andrew Carnegie-rags to riches success Carnegie, Cornelius Vanderbilt, John D. Rockefeller, etc – “robber barons”

4. SOCIALISM Robert Owen thought that for the good of all, society or the government, instead of individuals, should own property and control industry Efforts of Owens and others who agreed led to a movement called social democracy

5. COMMUNISM More radical view of Socialism put forth by Karl Marx Believed capitalism would lead to poverty Believed capitalism disrupts the relationship between labor and profit Believed there should be a direct connection between one’s work and one’s pay In a communist economy, the government owns almost all the means of production and controls economic planning Communism is later used to violate basic human rights and freedom of choice

6. EFFECTS ON HOME LIFE “Separate Spheres”- When men went to work, women stayed at home Woman responsible for moral guidance Lower class couldn’t afford for the mother to stay at home, still responsible for guidance

7. EFFECTS ON COUNTRIES Mass production increased their ability to build ships and make weapons Countries were able to conquer and control sources of raw materials around the world Population growth

8. LONG-TERM EFFECTS Standard of living improved Leisure time Citizens became more educated