WHII: SOL 9b Economic Ideologies

Capitalism Adam Smith’s The Wealth of Nations Role of market competition and entrepreneurial abilities Stress on individual freedoms “Laissez-faire”- free market No government interference

Capitalism Impact on standard of living and the growth of the middle class Dissatisfaction with poor working conditions and the unequal distribution of wealth in society Other capitalist opposed any gov’t. interference as well. They believed that the best cure for poverty was not governmental relief but for people to improve their situation through thrift, hard work, and limiting the size of their families

Socialism Robert Owen The people as a whole, rather than private individuals would own and operate the “means of production”- factories, railways, farms and other large businesses Owen set-up a model community in New Landmark, Scotland “Utopian society”- equal share in the work, equal share in the profits

Communism Karl Marx’s The Communist Manifesto (written with Friedrich Engels) and Das Kapital (motivating force of capitalism is the exploitation of the work force) Communism refers to a class struggle that results in a classless society where all “means of production” would be owned by the community

Communism The history of class struggles is between the “haves” and the “have-nots” Economics is the driving force in history Response to the injustices of capitalism Importance to communists of redistribution of wealth* Later, in practice, came to mean that the state controls the means of production for the benefit of the community

For thought…. Why was communism developed? Why does communism exists in some countries today? Why a country might turn away from communism? What are some key difference between capitalism and communism? How are socialism and communism alike?