How Economics & Technology Entered into the Modern World

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems.  What is economics?

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems.  What is economics? The study of production, distribution, and consumption of goods and services. ▪ What does “production” mean? ▪ What does “distribution” mean? ▪ What does “consumption” mean? ▪ What does “market” mean?

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems.  What is economics? The study of production, distribution, and consumption of goods and services. ▪ What does “production” mean? Supply, producers. ▪ What does “distribution” mean? Sell, transfer. ▪ What does “consumption” mean? Demand, consumers. ▪ What does “market” mean? Place where goods & services are exchanged.

1. Before we get into scientists & technology, the first, and most important, aspects we will look at in this presentation is economics, theories, & systems.  What is economics? The study of production, distribution, and consumption of goods and services. ▪ What does “production” mean? Supply, producers. ▪ What does “distribution” mean? Sell, transfer. ▪ What does “consumption” mean? Demand, consumers. ▪ What does “market” mean? Place where goods & services are exchanged. ▪ Markets can be local, state, regional, national, international, or global; physical or electronic.

2. Each economy is governed by an economic system:  Way to organize an economy (resources, goods, & services) to support a country’s needs.

2. Each economy is governed by an economic system:  Way to organize an economy (resources, goods, & services) to support a country’s needs.  Economic systems come in many different forms; however, most can be defined through the degree of GOV control in the economy. ▪ Every country’s GOV has a degree of control in the economy, how much they regulate or involve themselves in the market. ▪ No stable or democratic country has either zero control or total control.

 On one side of the spectrum, GOV has a limited role in the economy.  This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.?

 On one side of the spectrum, GOV has a limited role in the economy.  This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.? ▪ Supply/Demand are Market Forces (Invisible Hand). ▪ Free Markets are free from GOV influence.

 On one side of the spectrum, GOV has a limited role in the economy.  This is called a Market Economy (Free Market): Supply & Demand controls all aspects of the economy. Ex.? ▪ Supply/Demand are Market Forces (Invisible Hand). ▪ Free Markets are free from GOV influence.  On the other side of the spectrum, GOV has a major role in the economy.  This is called a Command Economy (Market): GOV controls (commands) all aspects of the economy. Ex.?

 What are the advantages of a Command Economy?

 What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.  What are the disadvantages of a Command Economy?

 What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.  What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.  What are the advantages of a Market Economy?

 What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.  What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.  What are the advantages of a Market Economy? People own property & skilled workers make more money.  What are the disadvantages of a Market Economy?

 What are the advantages of a Command Economy? GOV keeps prices low, wages are fair, & protects certain jobs.  What are the disadvantages of a Command Economy? People face shortages, no luxury items, long work hours.  What are the advantages of a Market Economy? People own property & skilled workers make more money.  What are the disadvantages of a Market Economy? Unfair to people w/o skills/capital & no safety net during recessions.  These two types of economies soon produced three economic systems that are still used today.

3. The 1 st example of the economic systems born during Industrialization is Capitalism. Examples?  An economic system where individuals own the means of production & Supply/Demand determine prices, wages, & production.

3. The 1 st example of the economic systems born during Industrialization is Capitalism. Examples?  An economic system where individuals own the means of production & Supply/Demand determine prices, wages, & production. ▪ What are “means of production”? Factories, businesses, banks, farms, & utilities. ▪ Capitalism is based around earning capital (money/profit).

3. The 1 st example of the economic systems born during Industrialization is Capitalism. Examples?  An economic system where individuals own the means of production & Supply/Demand determine prices, wages, & production. ▪ What are “means of production”? Factories, businesses, banks, farms, & utilities. ▪ Capitalism is based around earning capital (money/profit). ▪ Capitalism allows individuals to be creative to earn capital. ▪ Capitalism favors those w/ money & provides little safety net for those w/o it.

 The next economic system is based around another group of people, really those that have not.  Which Class would have been completely supportive of Capitalism? Why?  Which Class would have suffered most under Capitalism? Why?  If individuals will not improve the lives of their workers, then who will do it?  Capitalism is less GOV control while the next one is all about it.

4. The 2 nd example of the economic systems born during Industrialization is Socialism. Examples?  An economic system where the GOV owns the means of production & redistributes wealth to ensure equality & fairness.

4. The 2 nd example of the economic systems born during Industrialization is Socialism. Examples?  An economic system where the GOV owns the means of production & redistributes wealth to ensure equality & fairness. ▪ What is “redistribution of wealth”? Dividing out the wealth equally to those without. ▪ Socialism is based around providing welfare for society.

4. The 2 nd example of the economic systems born during Industrialization is Socialism. Examples?  An economic system where the GOV owns the means of production & redistributes wealth to ensure equality & fairness. ▪ What is “redistribution of wealth”? Dividing out the wealth equally to those without. ▪ Socialism is based around providing welfare for society. ▪ Socialism allows for more taxes on the wealthy to pay for welfare programs. ▪ Socialism favors those who w/o enough money.

5. Socialism comes in two modern day forms.  Reform Socialism: where politicians work w/ GOV to reform society & create welfare services. ▪ This is very common Europe & North America.

5. Socialism comes in two modern day forms.  Reform Socialism: where politicians work w/ GOV to reform society & create welfare services. ▪ This is very common Europe & North America.  Communism: where revolutionaries overthrow GOV to create a new society w/ total GOV control. ▪ This was common Russia & is still seen in Cuba, North Korea, & China.

5. Socialism comes in two modern day forms.  Reform Socialism: where politicians work w/ GOV to reform society & create welfare services. ▪ This is very common Europe & North America.  Communism: where revolutionaries overthrow GOV to create a new society w/ total GOV control. ▪ This was common Russia & is still seen in Cuba, North Korea, & China. ▪ Both forms believe the Working Class is exploited by the wealthy & want a fairer & equal society. ▪ One tries to end this via reform while the other w/ violence.

6. The 3 rd example of the economic systems created during Industrialization is a Mixed Economy. Ex.?  An economic system where individuals own the MOP, but GOV provides basic welfare services for society. ▪ Mixed Economies are the most common type of economy seen. ▪ The Private & Public Sector coexist w/ smaller industries privatized & larger one nationalized (medicine, transportation, fuel). ▪ A completely Capitalism or Socialist economy has never lasted very long as there are major conflicts between the people & GOV. Think back to the lessons we have learned about change & extremes.

 Your next assignment is to use your book to fill out the significance of the figures below.  Underneath each figure is the Pg. number where you will find information about him/her.  You will be working by yourself & quietly; we will go over this organizer in 30 minutes!  Let’s do the first one together to make sure you understand what I am expecting!