government did keep a laissez-faire attitude. the u.s. government followed adam smith to the letter
TRANSCRIPT
Government did keep a laissez-faire
attitude.• The U.S. government followed Adam Smith to the letter.
We were a nation of entrepreneurs.
• Andrew Carnegie - founder of U.S. Steel.
• Founder of libraries.
But there were problems...
• Civil rights abuses.
–Native American abuses.
–Ku Klux Klan.
Problems of Monopolies
• Higher prices and lower quality.
Types of Monopolies
• Natural• Geographic• Technological (Jack
and the Beanstalk)• PREDATORY
Communism
• Founded by Karl Marx in 1848.
• Wrote THE COMMUNIST MANIFESTO
• All history is a dialectic struggle between the rich and poor.
Communism = Marxism = Bolshevism = Command
Economy• Borgeoisie v.
Proletariat war.• Proletarian utopia
– No private property
– Equality
– Justice
Government’s Role
• Government would “whither on the vine” as unneeded.– Govt. is to define who
owns what and punish those who take.
BUT
• In reality, government has to be in complete control, owning all the resources and allotting them out according to people’s needs.– Command Economy
Phrases from the Communist Manifesto
• “From each according to his ability. To each according to his need.”
• “Religion is the opiate of the masses.”
Types of Communists
• Pacifist• Violent• Socialist – where govt.
is used to control the excesses of capitalism.
Socialism
• The government owns some resources and people own the rest.– France: Govt. owns
public necessities.– Denmark, Sweden,
Norway: Cradle to Grave socialism.
– U.S.: Limited socialism. Mixed economy.
Cradle to Grave Socialism
• Sweden v. US• Avg. Life expectancy
– 77/82 : 74/80– Poverty Rate– 4% / 12.7%
• Literacy Rate– 99% : 97%
• Crime Rate– 107 / 114
Cradle to Grave Socialism
• Opportunity Costs:• TAXES
– 52% / 36%
Command Economies TodayCuba
• Life expectancy– 74/79 : 74/80
• Income– $2,100 : $36,300
Command Economies TodayNorth Korea
• Life Expectancy– NA
• Income– NA
• Poverty Rate– NA
3 million have starved to death since 1997.