Do you agree? Why or why not? How can we apply this to our lives and to our world today?

“It is not the strongest of the species that survives, nor the most intelligent

that survives. It is the one that is the most adaptable

to change.”

1. Do you agree? Why or why not?2. How can we apply this to our lives

and to our world today?

What is Evolution?

Charles Darwin“Origin of the Species”

• Animals will adapt to their environment through a process called “Natural Selection”– The strongest and most adaptable will survive and

pass on their superior characteristics to the next generation.

• Also called “Survival of the Fittest”

Before Darwin…

• Man’s view of nature was romanticized…

After Darwin…

• Nature is a bloody struggle for survival where the weak are eaten by the strong!

Then what is Social Darwinism?

• The theory of natural selection applied to

society to explain that some will succeed and others will fall behind.

• There will be rich and poor, and only some people will naturally rise to the top.

This is capitalism!

Work with a partner:

• You are the president of a multi-million dollar corporation. You have just finished the accounting for the year and you have a profit of $100 million. What should be done with the extra money?

Choices:

1. Increase the value of the stocks – this will increase the wealth of the investor/you!

2. Improve the working conditions for the worker. (Safety, update machinery, etc.)

3. Raise the salaries of the workers.4. Expand production by building a new factory

= more profit!

Adam Smith

• Capitalism (Free Enterprise)• Believed in 3 things:– Laissez Faire– Law of Supply and Demand– Competition

Laissez-faire:• Government should leave the economy alone – No regulations– No protection for workers– No control of prices– No control of wages

• The guide for the economy is self-interest (one might call it greed).

• Self-interest will ultimately make it better for everyone.

• The economy will be guided by an Invisible Hand (market forces).

Law of Supply and Demand

• Supply: the amount of items at a given price available for sell.

• Demand: the number of items at a given price that consumers wish to purchase.

• Law of Supply & Demand: an economic model of price determination in a market.

Law of Competition

• Competition is good. • Competition keeps prices low. • If you cannot produce an item that is

competitive in the market, you will go out of business.

• If you go out of business your resources will be put to use in a more productive way and you will find another place in market.

Think cell phones…

The Rise of Communism

• The ideas of socialism and communism were born of the Industrial Revolution and the plight of the workers.

• Socialism: Emphasized cooperation over competition. The government controls, or regulates the economy.

• Communism: Government control of ALL property capable of creating wealth. Classless society; Command Economy.

Karl Marx believed…there were 2 types of people:

• Bourgeoisie: owners of the means of production (wealthy)

• Proletariat: industrial workers (poor)• He believed that the Proletariat had to revolt

and take over the govt to create needed changes.

Command Economy

• The opposite of capitalism!• Govt controls all production and decides what

will be produced.

COMMAND ECONOMY

If you were a worker during the Industrial Revolution, would communism appeal to you?

Why or why not?

Karl Marx or

Adam Smith?

Communism or Capitalism?

Social Classes

• One must oppress the other; so force must be used to create a classless society.

• Natural part of an economic system.

Private Property

• Use what you own to create wealth.

• Must be controlled by a central government.

Competition

• Is good because it creates products at low prices and forces best use of resources

• Is bad because everyone must work together to benefit the whole.

Supply and Demand

• The government must control resources and provide only the products that society needs

• Let the market decide how resources are to be used and what products will be made

Factors of Production

• Should be owned and controlled by a central administration

• Should be privately owned and used as the owner sees fit

Free Markets

• Will allow the economy to function efficiently and without outside forces

• Will allow the bourgeoisie to exploit the workers.

Religion

• As long as it does not interfere with the economy, who cares?

• Serves only to pacify the worker so that they are more easily exploited by the bourgeoisie

Trade

• Trade must be controlled for the benefit of classless society

• Trade is good! The more you trade, the better you are…