Capitalism & Socialism

Political Reforms The Factory Act of 1833: Illegal to hire children under 9 years old 9 to 12 could not work more than 8 hours a day 13 to 17 could not work more than 12 hours

Political Reforms The Mines Act of 1842: Prevented women and children from working underground The Ten Hours Act of 1847: Limited the work day to ten hours for women and children who worked in factories

New ways of thinking Adam Smith: Father of Capitalism Wrote Wealth of Nations Karl Marx: Father of Communism Friedrich Engels helped him write his book the Communist Manifesto

New ways of thinking Adam Smith: Father of Capitalism Wrote Wealth of Nations Karl Marx: Father of Communism Friedrich Engels helped him write his book the Communist Manifesto

Adam Smith

Karl Marx and Friedrich Engels Karl Marx Friedrich Engels

Belief of Ownership Adam Smith Karl Marx Individuals and business own property and the means of production The community or the state should own property and the means of production

Belief of Progress Adam Smith Karl Marx Progress results when individuals follow their own self-interest Progress results when a community of producers cooperate for the food of all

Role of Government Adam Smith Karl Marx Government should not interfere in the economy because competition creates efficiency in business Laissez faire An unequal distribution of wealth and material goods is unfair. A better system is to distribute goods according to each person’s need

Basic Beleifs Adam Smith Karl Marx Businesses follow their own self-interest by competing for the consumer’s money. Each business tries to produce goods or services that are better less expensive than those of competitors Consumers compete to buy the best goods at the lowest prices. This competition shapes the market by affecting what business are able to sell Socialists believe that capitalist employers take advantage of workers. The community or state must act to protect workers Capitalism creates unequal distribution of wealth and material goods. A better system is to distribute goods according to each person’s need.