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Economic Systems of Industrialization

+Before you turn in your homework!Typo!

In first paragraph (and probably your answer) I made a typo. Friedrich Engels and Karl Marx worked together to develop communism, not socialism.

Please change this on your worksheet (and your answer if needed!)

Sorry about the typo!

+ROUND 1

+Capitalism

GOAL: FREEDOM

Economic system run by a free market

All production (businesses) is privately owned

Government does not regulate businesses

People compete to get money, property

People get freedom, but less equality

+Capitalism

Major principle of Capitalism: “Laissez faire” (leave alone)

Economic policy of letting private businesses set working conditions and policies

Government does not interfere

+Capitalism Adam Smith - called “the

father of Capitalism”

Wrote “The Wealth of Nations”

Law of self-interest – people work for their own good

Law of competition – competition forces people to make a better product

Law of supply and demand – in a free market, enough goods would be created to meet demand

+How does this fit our game?

Private ownership (students owned their candy)

Freedom of competition (all played rock, paper, scissors)

Results in unequal economic classes (some students won, most lost)

+ROUND 2

+Socialism

GOAL: FAIRNESS

Economic system in which goods are regulated by the government

Higher taxes than Capitalism

More public services for the people

Concerned with fairness, ending poverty

+How does this fit our game?

Government ownership of industry (I collected candy)

Goal is for economic equality (I redistributed evenly)

Aims for a classless society (everyone has the same amount of candy)

+ROUND 3

+Communism

GOAL: EQUALITY

Economic system run by the people, where everything is shared equally

Property shared by the community

Businesses owned by the community

People all get equal pay

+Communism

Karl Marx

Industrial Revolution made rich richer, poor poorer

Classes would eventually go to war

People would rise up and create a system in which people shared all goods and services

+How does this fit our game?

Goal of classless society achieved (students refuse to play the game and opt to share candy)

No government needed (I don’t need to supervise)

+Differences between the economic systems

Capitalism?

Socialism?

Communism?

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+Hold up a C for Capitalism, an S for Socialism and a COM for Communism….

+Choose the economic system that fits

Franz works all day in a factory making car tires. He would like to do something else, but this is the job he was assigned by the government. He doesn’t get paid much, but the government promises that he will always have a job and will provide the things he needs.

+Choose the economic system that fits

Erika was born in a poor family, raised by a single mother without a steady job. Through hard work in school, she was able to attend college and become a lawyer. She is now one of the most successful lawyers in New York, where she owns a fancy apartment and makes over $1 million a year.

+Choose the economic system that fits

Susan and John run a very successful store in their town but most of the money they make goes to the government in taxes. John was in a car accident, and he was badly hurt. He was able to get good medical care at a hospital without paying, and a nurse comes to check on him once a week, free of charge.

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+Capitalism vs. Socialism

Continue to explore the differences

Predict what types of people would have supported each

+Utilitarianism

Greatest good for the greatest number of people

People should be free to pursue their own advantage without interference

Pushed for progressive reforms

+Labor Unions

Working conditions changed during the I.R.

People began to organize. They wanted:Better working conditionsHigher wages

Advocated for changes by threatening to strike

+Reform Movements

Workplace reformsChild laborBetter wagesSafety

Anti-slavery campaigns

Women’s Movement

Education and prison reforms