CapitalismCapitalism

An economic system based on private ownership of land,

businesses, factories, railroads, etc. that are used to

produce a profit.

An economic system based on private ownership of land,

businesses, factories, railroads, etc. that are used to

produce a profit.Usually associated with democracy.

Usually associated with democracy.

Thomas MalthusThomas Malthus

Adam SmithAdam Smith

Herbert SpencerHerbert Spencer David

RicardoDavid

Ricardo

Adam SmithAdam Smith

• Wrote Wealth of Nations

• Wrote Wealth of Nations• believed in laissez-faire

• believed in laissez-faire

“Capitalism at its Best”

“Capitalism at its Best”

hard work hard work

bigger businessbigger business

more jobsmore jobs

more workersmore workers

competitioncompetition

• “Father of Capitalism”

• “Father of Capitalism”

profitprofit

more goods producedmore goods produced

people do their bestpeople do their best

Herbert SpencerHerbert Spencer

• economic “survival of the fittest”

• economic “survival of the fittest”

• believed in laissez-faire

• believed in laissez-faire

Social Darwinism Social Darwinism

• the government must let the “unfit” (the weak, lazy, stupid)…die off

• the government must let the “unfit” (the weak, lazy, stupid)…die off

CapitalismCapitalismPositivesPositives

• higher standard of living

• higher standard of living• lowest taxes of the 3

• lowest taxes of the 3

• competition = better quality

• competition = better quality• social mobility• social mobility

CapitalismCapitalismNegativesNegatives

• will always have the poor

• will always have the poor• will always have unemployment

• will always have unemployment

• gap between rich and poor

• gap between rich and poor

• exploitation of workers

• no social safety net("survival of the fittest")

SocialismSocialism

An economic system in which government has

ownership and control of parts of society (usually

factories and major businesses)...

An economic system in which government has

ownership and control of parts of society (usually

factories and major businesses)...…for the good of

the people.…for the good of the people.

Robert Owen

Robert Owen

Charles FourierCharles Fourier

SocialismSocialism

PositivesPositives

• government takes care of education, health care, elderly, etc.

• government takes care of education, health care, elderly, etc.

• less gap between the rich and poor

• less gap between the rich and poor

• less unemployment• less unemployment

SocialismSocialismNegativesNegatives

• high taxes• fewer choices• less incentive

• what if the government is corrupt?

CommunismCommunism

An economic system in which all property, land,

businesses, factories, railroads, etc. belong to the

people...

An economic system in which all property, land,

businesses, factories, railroads, etc. belong to the

people...

(“Theoretical or Ideological”)

(“Theoretical or Ideological”)

…for the good of the people.

…for the good of the people.

Friedrich Engels

Friedrich Engels

Karl MarxKarl Marx

Karl MarxKarl Marx

• capitalism = exploitation

• capitalism = exploitation

• the people should control property & means of production

• the people should control property & means of production

• class struggle:• class struggle:

Friedrich EngelsFriedrich Engels

bourgeoisie vs. proletariatbourgeoisie vs. proletariat

• religion = tool for oppression

• religion = tool for oppression

violent revolution needed

“Let the ruling classes tremble at a Communist revolution.

- Karl Marx and Friedrich Engels, Communist Manifesto

The proletarians have nothing to lose but their chains.

They have a world to win. Workers of the world unite!”

A classless society in which

people share equally in the work and the

wealth.

Result:

Marxism:Marxism:

workers lead a violent revolution workers lead a violent revolution capitalism falls capitalism falls

brief “socialist phase” to prepare proletariat ("dictatorship of the proletariat")

brief “socialist phase” to prepare proletariat ("dictatorship of the proletariat")

true communist societytrue communist society

(a.k.a. “theoretical communism”):

(a.k.a. “theoretical communism”):

Historical Communism:Historical Communism:

workers lead a violent revolution workers lead a violent revolution capitalism falls capitalism falls

DICTATOR needed for a TRANSITIONAL

phase

DICTATOR needed for a TRANSITIONAL

phase

true communist society

true communist society

CommunismCommunism

A political and economic system in which

government controls every aspect of life (i.e.

business, education, religion, press, housing, size of families, music,

etc.)

A political and economic system in which

government controls every aspect of life (i.e.

business, education, religion, press, housing, size of families, music,

etc.)

HistoricalHistorical

An extreme form of socialism.

An extreme form of socialism.Vladimir

LeninVladimir

Lenin

Joseph Stalin

Joseph Stalin

Mao Tse-Tung

Mao Tse-Tung

Kim Jong-ilKim Jong-il

Nicolae Ceacsescu

Nicolae CeacsescuFidel

CastroFidel

CastroPol PotPol PotHo Chi

MinhHo Chi Minh

Richard Martin

Richard Martin

CommunismPositivesPositives

• no homeless

• 100% employment

• no gap between rich and poor

• stability

• no exploitation of workers

CommunismCommunismNegativesNegatives

• true communism has never existed

• limited freedom• little incentive• shortages or poor quality

Working it out: 3 economic systems

Create a brochure advertising the benefits and wonders of one of the three

economic systems......CapitalismSocialism

CommunismBe creative...include factual details and visuals to make it look appealing and "sell" the system you

choose!