1. “If an elective republic is to endure for any great length of time, every elector must have sufficient information…to direct wisely the legislature, the ambassadors, and the executive of the nation… It is the duty of government to see that the means of information be diffused to every citizen.” -Thaddeus Stevens, Apr What might this quote be talking about?

2. The Role of Economics in Government
Economics Theories
The Role of Economics in Government

3. Economics Systems Three Decisions of Economic Systems
What and how much should be produced?
How goods and services should be produced?
Who gets the goods and services that are produced?

4. History of Capitalism
Capitalism developed from economic and political changes in early modern Europe
Market System
People could work for Economic Gain
Wealth should be used aggressively
Free Market
Buyers and sellers were free to make unlimited economic decisions in the marketplace

5. History Cont.. The Wealth of Nations Concept of Laissez-faire
Written by Adam Smith
Provided a philosophy for capitalism
Concept of Laissez-faire
“to let alone”
Gov. has hands off policy towards economy.
Market - determines price and goods produced
Gov. Influence
Mixed Market Economy – free enterprise combined and supported by government decisions in the market place.
How does the free enterprise system contribute to the idea of individual liberty?

6. Capitalism Five Main Characteristics
Private ownership and control of property and resources
Free Enterprise
Competition among Businesses
Freedom of choice
Possibility of Profits

7. Communism Hist. The Communist Manifesto (pamphlet)
Written by Karl Marx
Argued that population was divided
Bourgeoisie-Capitalists and owners of production
Proletariat – workers who produce the goods
Class Struggle between workers and owners

8. Communism Beginning
“In short, Communists everywhere support every revolutionary movement against the existing social and political order of things… Let the ruling class tremble at the Communist Revolution. The proletarians have nothing to lose but their chains. Working men of all countries, Unite!” -Karl Marx, 1848
According to Marx, How must communism come about?
Why might communism begin in this way?

9. Goal of Communism Full Communism One class would evolve
Property would be communal
No need for government
Is Full Communism possible?

10. Communist Government Command Economy
Decisions are made at the upper levels of government.
State owns land, natural resources, industry, banks, and transportation.
State controls all mass communication
T.V., newspapers, radio etc…
Issues:
Communism fails to provide adequate standards of living
Ends in Government Change or Revolt by the people. (China)

11. Socialism Hist. Modern Socialism Industrialization causes problems
Develops in 19th century
Industrialization causes problems
Low paid workers
Slums in cities
Democratic Socialism
Peaceful change
Gov. owns mean of production and makes most economic decisions
Free Elections
Tanzia, Denmark, Norway and Sweden

12. Socialism Three Main Goals
Public Ownership of most land, factories, and other means of production.
Equal Distribution of wealth and economic opportunity amongst population.
Society’s control, through its gov., of all major decisions about production.