Objective 7; Compare and contrast the three main economic systems of capitalism, socialism, and communism and their relationship with different types of governments.

Capitalism; Chapter 23 Capitalism; Chapter 23 An economic system in which the factors of production, (land, labor, capital, entrepreneurship), are privately owned. An economic system in which the factors of production, (land, labor, capital, entrepreneurship), are privately owned. Often called the Free Enterprise System. Often called the Free Enterprise System. Ownership of capital goods and investment are private decisions, not the decisions of government. Ownership of capital goods and investment are private decisions, not the decisions of government.

Capitalism allows consumers, entrepreneurs, and workers enjoy freedom of choice. Capitalism allows consumers, entrepreneurs, and workers enjoy freedom of choice. 4 Fundamental Factors of Capitalism; 4 Fundamental Factors of Capitalism; 1. Private ownership 1. Private ownership 2. Individual initiative 2. Individual initiative 3. Profit 3. Profit 4. Competition 4. Competition

Socialism; Socialism; An economic and political philosophy based on the idea that the benefits of economic activity should be equitably distributed throughout a society. An economic and political philosophy based on the idea that the benefits of economic activity should be equitably distributed throughout a society. “Fairness” is achieved through the principle of collective ownership of the factors of production and their distribution. “Fairness” is achieved through the principle of collective ownership of the factors of production and their distribution.

Socialists reject the idea of individualism and competition for profit. Socialists reject the idea of individualism and competition for profit. Socialists say real equality requires that political equality and economic equality go hand in hand. Socialists say real equality requires that political equality and economic equality go hand in hand. They say economic equality can only come when the public controls the centers of economic power. They say economic equality can only come when the public controls the centers of economic power.

In socialist countries the government owns most of the factors of production. In socialist countries the government owns most of the factors of production. They are “Nationalized”. They are “Nationalized”. Ex; Healthcare, airlines Ex; Healthcare, airlines There is some degree of private ownership. There is some degree of private ownership. Defenders of socialism say that it gives workers and citizens more control over their daily lives. Defenders of socialism say that it gives workers and citizens more control over their daily lives.

Communism; Communism; Communism calls for collective, or state, ownership of the factors of production. Communism calls for collective, or state, ownership of the factors of production. Karl Marx and Friedrich Engels set up the basic concepts in The Communist Manifesto, 1848 Karl Marx and Friedrich Engels set up the basic concepts in The Communist Manifesto, 1848

The proletariat will use its political supremacy to wrest, by degree, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the state, i.e., of the proletariat organized as the ruling class; and to increase the total productive forces as rapidly as possible. The proletariat will use its political supremacy to wrest, by degree, all capital from the bourgeoisie, to centralize all instruments of production in the hands of the state, i.e., of the proletariat organized as the ruling class; and to increase the total productive forces as rapidly as possible.

Of course, in the beginning, this cannot be effected except by means of despotic inroads on the rights of property, and on the conditions of bourgeois production; by means of measures, therefore, which appear economically insufficient and untenable, Of course, in the beginning, this cannot be effected except by means of despotic inroads on the rights of property, and on the conditions of bourgeois production; by means of measures, therefore, which appear economically insufficient and untenable,

but which, in the course of the movement, outstrip themselves, necessitate further inroads upon the old social order, and are unavoidable as a means of entirely revolutionizing the mode of production. but which, in the course of the movement, outstrip themselves, necessitate further inroads upon the old social order, and are unavoidable as a means of entirely revolutionizing the mode of production.

These measures will, of course, be different in different countries. These measures will, of course, be different in different countries. Nevertheless, in most advanced countries, the following will be pretty generally applicable. Nevertheless, in most advanced countries, the following will be pretty generally applicable. 1. Abolition of property in land and application of all rents of land to public purposes. 1. Abolition of property in land and application of all rents of land to public purposes. 2. A heavy progressive or graduated income tax. 2. A heavy progressive or graduated income tax.

3. Abolition of all rights of inheritance. 3. Abolition of all rights of inheritance. 4. Confiscation of the property of all emigrants and rebels. 4. Confiscation of the property of all emigrants and rebels. 5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly. 5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly. 6. Centralization of the means of communication and transport in the hands of the state. 6. Centralization of the means of communication and transport in the hands of the state.

7. Extension of factories and instruments of production owned by the state; the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan. 8. Equal obligation of all to work. Establishment of industrial armies, especially for agriculture.

9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country. 9. Combination of agriculture with manufacturing industries; gradual abolition of all the distinction between town and country by a more equable distribution of the populace over the country. 10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education 10. Free education for all children in public schools. Abolition of children's factory labor in its present form. Combination of education

Characteristics of Communism; Characteristics of Communism; 1. Role of the Communist Party. 1. Role of the Communist Party. The party makes all decisions regarding the government and economy. The party makes all decisions regarding the government and economy. 2. Central Planning – 2. Central Planning – Government plans the economy in 5 yr. segments, known as the Five Year Plan. Government plans the economy in 5 yr. segments, known as the Five Year Plan.

3. Collectivization – All industry and agriculture is run by the government. Millions died when Soviet Union collectivized farms in the 1920’s. 3. Collectivization – All industry and agriculture is run by the government. Millions died when Soviet Union collectivized farms in the 1920’s. 4. State Ownership – Government owns all parts of the economy. All property, all factors of production. 4. State Ownership – Government owns all parts of the economy. All property, all factors of production.

Objective 8; Objective 8; Understand key ideas of limited government and the rule of law as developed in England and exhibited in the Magna Carta, Petition of Right, and English Bill of Rights. Understand key ideas of limited government and the rule of law as developed in England and exhibited in the Magna Carta, Petition of Right, and English Bill of Rights.

Basic Concepts of Government in America; Basic Concepts of Government in America; Ordered Government – orderly regulation of the relationships between people and their government. Ordered Government – orderly regulation of the relationships between people and their government. Based on ideas colonists knew from England. Based on ideas colonists knew from England.

Limited Government – idea colonists brought from England that government is not all-powerful. Idea had been part of English political philosophy for over 400 years before Jamestown. Limited Government – idea colonists brought from England that government is not all-powerful. Idea had been part of English political philosophy for over 400 years before Jamestown. Representative Government – idea that government should serve the will of the people and people should have a voice in government. Representative Government – idea that government should serve the will of the people and people should have a voice in government.

English Documents; English Documents; Magna Carta – 1215 – aka Great Charter. Magna Carta – 1215 – aka Great Charter. Barons were tired of King John’s heavy taxes, wars, and arbitrary acts. They forced him to sign it at Runnymeade. Barons were tired of King John’s heavy taxes, wars, and arbitrary acts. They forced him to sign it at Runnymeade. Included; Included; Trial by jury and due process Trial by jury and due process Protection against arbitrary taking of life, liberty, and property. Protection against arbitrary taking of life, liberty, and property.

The protections against the monarch were originally meant only for the privileged but became part of English law for everyone over time. The protections against the monarch were originally meant only for the privileged but became part of English law for everyone over time. *Magna Carta established principle that the power of the monarch was NOT absolute. *Magna Carta established principle that the power of the monarch was NOT absolute.

Petition of Right; 1628 – Charles I asked Parliament for money but they refused until he signed Petition of Right. Could no longer imprison or punish anyone without judgment of their peers or by the law of the land. *Challenged idea of divine right of kings and declared monarch must follow law of the land.

English Bill of Rights; English Bill of Rights; 1688 – William and Mary of Orange (Netherlands) offered the crown of England known as Glorious Revolution – William and Mary of Orange (Netherlands) offered the crown of England known as Glorious Revolution – Parliament drew up Bill of Rights to prevent further abuse of power by all future Monarchs – Parliament drew up Bill of Rights to prevent further abuse of power by all future Monarchs. William and Mary forced to sign it. William and Mary forced to sign it.

Included; Included; No standing army during peacetime without consent of Parliament. No standing army during peacetime without consent of Parliament. All Parliamentary elections must be free. All Parliamentary elections must be free. Guarantees of right to fair trial. Guarantees of right to fair trial. Freedom from excessive bail. Freedom from excessive bail. Freedom from cruel and unusual punishment. Freedom from cruel and unusual punishment. No taxes without consent of Parliament. No taxes without consent of Parliament.

*These 3 documents were where most ideas for the U.S. Constitution and government originated. This is what colonists knew and brought with them from England. *These 3 documents were where most ideas for the U.S. Constitution and government originated. This is what colonists knew and brought with them from England.

Objective 9; Objective 9; Recognize the role of British neglect of the colonies in the development of self- government as demonstrated by the Mayflower Compact and the Virginia House of Burgesses. Recognize the role of British neglect of the colonies in the development of self- government as demonstrated by the Mayflower Compact and the Virginia House of Burgesses.

13 American colonies were established independently over 125 years. 13 American colonies were established independently over 125 years. Virginia first – 1607 Virginia first – 1607 Georgia last – Georgia last – All were established out of a different set of circumstances, usually economic endeavors. All were established out of a different set of circumstances, usually economic endeavors. All were shaped by their English origins. All were shaped by their English origins.

3 types of colonies; 3 types of colonies; 1. Royal – controlled by the Crown. 1. Royal – controlled by the Crown. Pattern of government gradually emerged in Royal Colonies; Pattern of government gradually emerged in Royal Colonies; King appointed a governor King appointed a governor Council appointed by the king served as advisors to the governor would eventually become Upper House of colonial legislatures. Council appointed by the king served as advisors to the governor would eventually become Upper House of colonial legislatures.

Lower House was elected by property owners who could vote. Lower House was elected by property owners who could vote. Discontent between Royal governors and legislatures caused much resentment that eventually caused American Revolution, especially the issue of taxation. Discontent between Royal governors and legislatures caused much resentment that eventually caused American Revolution, especially the issue of taxation.

2. Proprietary Colonies; 2. Proprietary Colonies; 3- Maryland, 1632 to Lord Baltimore, Delaware, 1682, and Pennsylvannia, 1681, to William Penn 3- Maryland, 1632 to Lord Baltimore, Delaware, 1682, and Pennsylvannia, 1681, to William Penn Were organized by a proprietor who had been given land grant from King. Were organized by a proprietor who had been given land grant from King. Governor appointed by proprietor. Governor appointed by proprietor.

3. Charter Colonies; 3. Charter Colonies; Connecticut, 1662, and Rhode Island, Connecticut, 1662, and Rhode Island, Largely self governing. Largely self governing. Governor elected by male landowners. Governor elected by male landowners.

Mayflower Compact, Nov. 11, 1620; Mayflower Compact, Nov. 11, 1620; Pilgrims had no charter. They landed at Plymouth which was outside the land controlled by the London Company of Virginia. Pilgrims had no charter. They landed at Plymouth which was outside the land controlled by the London Company of Virginia. It was a social contract where everyone consented to follow the compacts rules for the sake of survival. It was a social contract where everyone consented to follow the compacts rules for the sake of survival. The government it formed derived it’s power from the consent of the governed. The government it formed derived it’s power from the consent of the governed.

Having undertaken, for the Glory of God and advancement of the Christian Faith and Honour of our King and Country, a Voyage to plant the First Colony in the Northern Parts of Virginia, do by these presents solemnly and mutually in the presence of God and one of another, Covenant and Combine ourselves together into a Civil Body Politic, for our better ordering and preservation and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute and frame such just and equal Laws, Ordinances, Acts, Constitutions and Offices, from time to time, as shall be thought most meet and convenient for the general good of the Colony, unto which we promise all due submission and obedience. In witness whereof we have hereunder subscribed our names at Cape Cod, the 11th of November, in the year of the reign of our Sovereign Lord King James, of England, France and Ireland the eighteenth, and of Scotland the fifty- fourth. Anno Domini 1620.[4][ Having undertaken, for the Glory of God and advancement of the Christian Faith and Honour of our King and Country, a Voyage to plant the First Colony in the Northern Parts of Virginia, do by these presents solemnly and mutually in the presence of God and one of another, Covenant and Combine ourselves together into a Civil Body Politic, for our better ordering and preservation and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute and frame such just and equal Laws, Ordinances, Acts, Constitutions and Offices, from time to time, as shall be thought most meet and convenient for the general good of the Colony, unto which we promise all due submission and obedience. In witness whereof we have hereunder subscribed our names at Cape Cod, the 11th of November, in the year of the reign of our Sovereign Lord King James, of England, France and Ireland the eighteenth, and of Scotland the fifty- fourth. Anno Domini 1620.[4][VirginiaEnglandScotland[4][VirginiaEnglandScotland[4][

William Bradford and the Mayflower Compact William Bradford and the Mayflower Compact

Captain John Smith Captain John Smith

Virginia House of Burgesses; Virginia House of Burgesses; July 30, 1619, was the first meeting of the first representative body in the North American English colonies. July 30, 1619, was the first meeting of the first representative body in the North American English colonies. Virginia had a Bicameral Assembly. Virginia had a Bicameral Assembly. The Upper House consisted of the council appointed by the King to advise the Royal Governor. The Upper House consisted of the council appointed by the King to advise the Royal Governor.

The Lower House consisted of people elected by landowners. The lower house was called the House of Burgesses. The Lower House consisted of people elected by landowners. The lower house was called the House of Burgesses. Parliament took little part in the management of the colonies. Parliament took little part in the management of the colonies. They were managed mainly by the Crown through the Privy Council and the Board of Trade in London. They were managed mainly by the Crown through the Privy Council and the Board of Trade in London.

In theory the colonies were governed from London. In theory the colonies were governed from London. London was 3,000 miles away and it took 2 months to cross the Atlantic. London was 3,000 miles away and it took 2 months to cross the Atlantic. Therefore, colonists became used to a large measure of self-government. Therefore, colonists became used to a large measure of self-government. Most legislatures had “power of the purse” over the Royal governors and could force him to do what they wanted. Most legislatures had “power of the purse” over the Royal governors and could force him to do what they wanted.

By mid 1700’s the relationship between the colonies and England was virtually Federal in form. By mid 1700’s the relationship between the colonies and England was virtually Federal in form. Meant the Crown was responsible for protection of the colonies and provided monetary system. Also regulated trade. Meant the Crown was responsible for protection of the colonies and provided monetary system. Also regulated trade. Other than that, colonies had wide amount of self-rule. Other than that, colonies had wide amount of self-rule. Very few taxes collected. Very few taxes collected George III came to power and it all changed George III came to power and it all changed.

King George III at 38 King George III at 38

Objective 10; Objective 10; Evaluate the relationship and conflicts between the colonies and the British government, such as the effects of the French and Indian War, the Stamp Act, the Boston Tea Party, and the Intolerable Acts and examine how they led to the American Revolution. Evaluate the relationship and conflicts between the colonies and the British government, such as the effects of the French and Indian War, the Stamp Act, the Boston Tea Party, and the Intolerable Acts and examine how they led to the American Revolution.

1760 George III becomes King. England is in the midst of a world war, known as the French and Indian War in the colonies and the 7 Years War elsewhere George III becomes King. England is in the midst of a world war, known as the French and Indian War in the colonies and the 7 Years War elsewhere. British government was in crucial need of money to fund the war. British government was in crucial need of money to fund the war. Parliament began to deal directly with the colonies in order to raise revenue. Parliament began to deal directly with the colonies in order to raise revenue.

British began to enforce already existing trade regulations and imposed new taxes on colonies. British began to enforce already existing trade regulations and imposed new taxes on colonies. Colonists objected to taxes and claimed they were being taxed without representation in Parliament. Colonists objected to taxes and claimed they were being taxed without representation in Parliament. Parliament claimed they were “virtually represented” since they enjoyed rights of all Englishmen. Parliament claimed they were “virtually represented” since they enjoyed rights of all Englishmen.

1765 Stamp Act passed by Parliament Stamp Act passed by Parliament. October 1765, 9 colonies sent delegates to the Stamp Act Congress in New York. October 1765, 9 colonies sent delegates to the Stamp Act Congress in New York. Wrote Declaration of Rights and Grievances and sent it to King. Wrote Declaration of Rights and Grievances and sent it to King. *First time colonists joined forces and opposed British government. *First time colonists joined forces and opposed British government.

Stamp Act was repealed. Stamp Act was repealed. More laws were passed by Parliament to rule Colonies. More laws were passed by Parliament to rule Colonies. Colonists organized boycotts of British products. Colonists organized boycotts of British products. March 5, 1770 – Boston Massacre. March 5, 1770 – Boston Massacre Committees of Correspondence created. (Samuel Adams) Provided network for information between anti-British groups Committees of Correspondence created. (Samuel Adams) Provided network for information between anti-British groups.

Protests continued in colonies. Protests continued in colonies. Dec. 16, 1773 – Boston Tea Party. Dec. 16, 1773 – Boston Tea Party. Spring 1774 – First Continental Congress meets in Philadelphia in response to the Intolerable Acts passed by Parliament. Spring 1774 – First Continental Congress meets in Philadelphia in response to the Intolerable Acts passed by Parliament. Sent another Declaration of Rights to King. Called for more boycotts of British goods. Sent another Declaration of Rights to King. Called for more boycotts of British goods.

May 10, 1775 Second Continental Congress meets. May 10, 1775 Second Continental Congress meets. Each colony sent delegates. Each colony sent delegates. Revolution had already started at Lexington and Concord. Revolution had already started at Lexington and Concord. *2 nd Congress became first government of U.S. for 5 yrs. *2 nd Congress became first government of U.S. for 5 yrs. Raised army and adopted Declaration of Independence, July Raised army and adopted Declaration of Independence, July 1776.