1. CAPITALISM VERSUS SOCIALISM VERSUS COMMUNISM

2. ADAM SMITH  Professor in Glasgow, Scotland  Believed in the FREE ECONOMY or FREE MARKET  Economic liberty produces economic progress  Wrote a book, in 1776, titled: THE WEALTH OF NATIONS

3. SMITH ECONOMIC RULES FOR SUCCESS  LAW OF SELF-INTEREST: People work for their own goodPeople work for their own good  LAW OF COMPETITION: Two or more companies compete for profitTwo or more companies compete for profit  LAW OF SUPPLY AND DEMAND: Enough goods produced at fair price to meet the customers’ needsEnough goods produced at fair price to meet the customers’ needs

4. CAPITALISM  CAPITALISM: Privately owned businesses make a profit and money is invested

5. SOCIALISM  Socialism- Factors of production owned by and operated for the people.  Socialists believe that the government should control the economy rather than waiting on the free-market capitalism to do the job.

7. KARL MARX  German  1818 – 1883  Introduced a radical type of Socialism  Wrote the Communist Manifesto- societies have been divided into warring classes

8. KARL MARX  Believed Capitalism will destroy itself  Also feels that Capitalism helps the “haves” (those that are wealthy) and “have-nots” or poor are left out and kept down  Marx feels that the people will revolt and overthrow the wealthy

9. COMMUNISM  Communism (Command Economy)- All land, mines, factories, railroads, and businesses owned by the government.  No one will own their own property  Government decides what you can have, where you will live, how much you can have, if you can marry, who you can marry or live with and what you will eat