MT2: Industrialism and Imperialism LT#2: Describe the development and effects of capitalism, utopianism, socialism and communism

Big Change  Prior to Industrialization: The Feudal System!  People lives centered on the castles that they lived in. Most people would never travel more than 10 miles from home.  People soon began trading natural resources around the world.  Industrialization changed the way money was earned/used  Prior to Industrialization: The Feudal System!  People lives centered on the castles that they lived in. Most people would never travel more than 10 miles from home.  People soon began trading natural resources around the world.  Industrialization changed the way money was earned/used

CAPITALISM is created What is it?  Capitalism is an economic system (economic systems is the way that money is made and used. 3 basics  1. Private Ownership  Businesses  Land  2. Profit motive  Goal is to make as much money as possible (Profit).  3. Supply and Demand  Money is made by selling things based on supply and demand

CAPITALISM  1. Private Ownership:  Capital (Money!!) belongs to individuals who are FREE to do what they wish with it.  Land and businesses are privately owned (people owned).  Little to no government involvement. For whatever reason.  1. Private Ownership:  Capital (Money!!) belongs to individuals who are FREE to do what they wish with it.  Land and businesses are privately owned (people owned).  Little to no government involvement. For whatever reason.

CAPITALISM  2. Profit Motive: Products are made because business owners want profits (More back than they put in).

CAPITALISM  3. Supply and demand  Business owners make money by producing items.  They only make items in demand-what people want.  People pay a price based on the supply/ availability of the item.  3. Supply and demand  Business owners make money by producing items.  They only make items in demand-what people want.  People pay a price based on the supply/ availability of the item.  Example: Apple (owner) produces iPhone 6 because people demand it and people will pay a high price because the supply of iPhone 6s’ are low.

Capitalism Pro’s (+) of capitalism  People can or are free to buy any products they want due to competition between businesses.  Anyone can make money  Products are cheaper if there is a large supply. Con’s (-) of capitalism  Uneven distribution of WEALTH  Poor people live in SQUALOR: slums, bad sanitation, etc.  Working conditions are miserable  No one cares about the old, sick and injured because they can’t work. They are not a target market.

After taking notes on page 1-7 Complete handout Mt2 LT2 Handout #3 on Capitalism before moving to the reactions to Capitalism.

Review Capitalism  Individual Ownership of the means of production  Self-interest  Competition  No government interference  Individual Ownership of the means of production  Self-interest  Competition  No government interference

Reactions to Capitalism: Socialism & Communism

Responses to “Capitalism”  Capitalism was not popular with everyone  Some people felt something new was needed to protect the working people  Three other economic systems were created:  Utopianism  Socialism  Communism  Capitalism was not popular with everyone  Some people felt something new was needed to protect the working people  Three other economic systems were created:  Utopianism  Socialism  Communism

Utopianism  What is a Utopia?  Perfect society based on cooperation instead of competition  People live and work together sharing goods and property.  Everyone has all there needs met (shelter, food, and security)  People tried living in Utopia’s but they all failed  It was not easy for everyone to give up what they want so that others can have what they need.  What is a Utopia?  Perfect society based on cooperation instead of competition  People live and work together sharing goods and property.  Everyone has all there needs met (shelter, food, and security)  People tried living in Utopia’s but they all failed  It was not easy for everyone to give up what they want so that others can have what they need.

Socialism: The Factors of Production are owned by the people, at least in part, and are used to the benefit of all.  ~Community and States own property and means of production.  Ex. Electricity, transportation, water, gas, food production  Principles:  Cooperation is better than competition The Factors of Production are owned by the people, at least in part, and are used to the benefit of all.  ~Community and States own property and means of production.  Ex. Electricity, transportation, water, gas, food production  Principles:  Cooperation is better than competition ~Creates an equal distribution of wealth according to the people’s needs. “Equality of all People” Everyone gets =money Everyone gets = medical help

Socialism  Believed that Capitalism was the CAUSE of moral and ethical problems.  Examples: Child Labor & Low Wages, Inequality among the people.  Believed that Capitalism was the CAUSE of moral and ethical problems.  Examples: Child Labor & Low Wages, Inequality among the people.

BASIC DIFFERENCES BETWEEN SOCIALISM AND CAPITALISM  Capitalism : Businesses are owned by individuals and corporations  Capitalism : Fosters a competitive atmosphere in which workers and companies are encouraged to work hard to achieve personal success  Capitalism : Ownership of private property is encouraged  Capitalism : Produces goods based on the law of supply and demand  Socialism : Businesses are owned by the government or state  Socialism : Encourages an atmosphere of cooperation in which each is given according to his Deeds.  Socialism : Ownership of private property is somewhat allowed.  Socialism : Government and the people together command production and prices.

COMMUNISM What is it?  A government were the people own everything Main ideas/beliefs  Workers should take control of all the factors of production; usually through revolution.  One powerful leader is in charge  The government controls EVERYTHING for the good of the people  Everyone will become equal

Communism  There was a struggle between owners and workers.  Capitalist economy would lead to revolution and workers overthrowing the owners.  Result: a society without social classes and economic equality.  There was a struggle between owners and workers.  Capitalist economy would lead to revolution and workers overthrowing the owners.  Result: a society without social classes and economic equality.

Fundamentals of Communism (You don’t have to copy this down)  Government owned banking system  Government controlled education  Government controlled labor  Government ownership of transportation and communication  Government ownership of agricultural and factories  Total abolition of private property  Heavy income tax on everyone  Government owned banking system  Government controlled education  Government controlled labor  Government ownership of transportation and communication  Government ownership of agricultural and factories  Total abolition of private property  Heavy income tax on everyone

BASIC DIFFERENCES BETWEEN COMMUNISM AND CAPITALISM Capitalism  Capitalism: Resources are owned by a private owner.  Capitalism: Competitive atmosphere in which workers and companies are encouraged to work hard to achieve personal success  Capitalism : Ownership of private property is encouraged  Capitalism : Produces goods based on the law of supply and demand Communism  Communism: Government owns all resources  Communism : Encourages an atmosphere of cooperation in which no matter how hard a person works, he or she reaps the same benefits as everyone else.  Communism : Ownership of private property is largely forbidden.  Communism : Government commands production and prices.

Assignment  Go back and look at your learning goal  Highlight any information that you think will help you better understand your learning goal  Complete the following tree map  Go back and look at your learning goal  Highlight any information that you think will help you better understand your learning goal  Complete the following tree map Different forms of government/economic systems CapitalismUtopianismSocialismCommunism Basic beliefs Pros cons