Economic PhilosophiesCapitalism and Communism

What is Capitalism?A)..An economic system in which money is invested in business ventures with the goal of making a profit

B) Role of market competition and entrepreneurial abilities

C)Principles of laissez faire let people do as they please

Capitalism and its Impacts

A) The Wealth of Nations Adam Smith-defended free economy, claimed that government need not interfere in the economy.

B) Role of market competition and entrepreneurial abilities

Adam Smith Wealth of Nations

C) Impact on standard of living and the growth of the middle class D) Dissatisfaction with poor working conditions and the unequal distribution of wealth in society

Stereotype of the Factory Owner

What were some theories opposed to capitalism?

Tocqueville French Philosopher

Consider what is happening among the working classes. Do you not see spreading among them. Ideas not only to overturn govt, but society itself?

starter activityThe Silent Highwayman, Punch magazine, 1858. What is the artist trying to say about living conditions in Victorian London?

Socialism and communism

A) Karl Marxs Communist Manifesto (written with Friedrich Engels) and Das Capital

B) Response to the injustices of capitalism

C) Importance of redistribution of wealth to the communists

The Socialists: Utopians & MarxistsPeople as a society would operate and own the means of production, not individuals.Their goal was a society that benefited everyone, not just a rich, well-connected few.Tried to build perfect communities [utopias].

SocialismA)Factors of production are owned by the public and operate for the welfare of all. B)Grew out of optimistic view of human nature and response to capitalism

CommunismA form of complete socialism in which the means of productionall land, mines, factories, railroads, and businesseswould be owned by all people.

Communist Manifesto

Karl Marx-Marxism,

employers=haves=bourgeoisie; employees=have-nots=proletariat;

Workingmen of all countries, unite. The Proletariat has nothing to lose but their chains

Distribute wealth back out to communist

Understanding 1

Capitalism and market competition fueled the Industrial Revolution. Wealth increased the standard of living for some.

Understanding 2

Social dislocations associated with capitalism produced a range of economic and political ideas, including socialism and communism.

Exit Quiz

1. Who was the author of The Wealth of Nations?

2. It stated that the government should not ______ with the economy.

3. Karl Marx authored The _________ _________.

4. Name two theories that opposed capitalism

5. Socialism was a philosophy that responded to the ___________ or wrong doings of capitalism.

6. The form of socialism in which the means of production of would controlled by the people.

7. Capitalism and market competition fueled the ________ ___________.

8. ________ is an economic philosophy that uses the principles of laissez-faire.

9. From what you have learned today, and the economic situation the U.S. has been going through, would the U.S., be better off as a Capitalist country, or a Socialist country?

From Industrial Rev. Quiz1. Which leader used guerrilla warfare to unite southern Italian states before turning them over to the king?A) Napoleon IIIB) Otto von BismarckC) Count CavourD) Giuseppe Garibaldi

2. Otto von Bismarcks actions in unifying Germany were seen as an example of this strategy, which justifies all means to achieve and hold power.A) laissez-faireB) Manifest DestinyC) guerrilla warfareD) Realpolitik

3. The final stage in German unification was:A) the Seven Weeks War.B) the Danish Rebellion.C) World War I.D) the Franco-Prussian War.

4) All of these are reason why the Industrial Revolution began in England except?A) LandB) MoneyC) SocialismD) Population

5. How did the Enclosure movement lead to industrialization?A) Improved the output on farmsB) Land owners sold land to Factory owners for profitC) Enclosed land forced many people to move from rural areas to the city looking for workD) Gave more people free time to invent new machinery

6. What did Otto Van Bismarck policy of realpolitik state?A) A leader should listen to the will of the peopleB) Candidates for office should tell the truthC) Military power should be used as a last resortD) Justify all means to achieve and hold power

7. During the unification of Italy the Papal States wereA) Replacing one pope and voting in another popeB) join willingly from the beginningC) The last to joinD) Fighting a violent revolt against the Italian states

8. Adam Smiths Wealth Of Nations supported the idea of a A) State controlled economyB) Free market economyC) Communist takeover of FarmingD) Retarding of the Entrepreneur spirit

9. What is laissez- faire economics?No govt interference in the economySome industries should be owned by the stateEconomy should be controlled by the govtBourgeoisie should be controlled at a higher rate

10. The Communist Manifesto was written by Adam SmithJohn LockeKarl MarxVladimir Lenin

11. All of these are parts of Communism exceptRise of ProletariatRedistribution of wealth to the poorGovt control of the economyLaissez Faire economy

12. Who helped Karl Marx write the Communist Manifesto?A) Adam SmithB) Frederick EngelsC) John LockeD) Thomas Hobbes

13. One negative consequence of Capitalism was Radical governments taking overFormation of Communism in EuropeUnequal distribution of wealthMovement of jobs to the city

14. Socialism and Communism believes the economy is best managed by A govt controlled by the workersThe marketA govt controlled by factory workersBankers

15. How did the Industrial Revolution influence Imperialism?Europeans felt sorry for their Little BrothersEuropeans wanted a better environmentIt created a need for new landIt created a need for raw materials